European austerity policies spark protests throughout the continent

Europe roiled with strikes and marches as citizens protested austerity measures–which contain cutting cultural services and increasing taxes–which governing bodies are enforcing as they try to climb out of the European debt crisis. Europeans are upset that while governments spent billions to rescue banks, ordinary citizens were being forced to accept the consequences of austerity. Meanwhile, a top U.S. Treasury official warned European governing bodies that economic recovery, not austerity, should be the priority.

Austerity draws a crowd

A day of austerity demonstrations was shown all throughout Europe on Wednesday. There was a march throughout Europe with hundreds of thousands of people. Reuters reports the protests were led by trade unions, which say austerity will slow economic recovery and punish the poorest citizens. Trade unions are mad about spending cuts and pension and labor market reforms. This is evidently shown within the demonstrations which were organized in 12 European capitals. In Europe, there was a crowd of about 60,000 in Brussels, Belgium waving their banners in protest. These banners said things like “Priority to jobs and growth” and “No to austerity.”

Austerity concentrates mainly on social products

There is one major reason the austerity demonstrations in Brussels are happening. It is because member states with high unemployment are running up deficits to fund their social systems which lead the European Union Commission to come up with the proposal of penalizing these member states. France is the country fighting hard and strong towards the EU proposal that Germany wants mostly because it wants sanctions to determine things rather than hard cutting rules, reports the Huffington Post. There are other nations in Europe being affected. Greek doctors and railway employees walked out on the job. Spanish workers made their statement too. Buses and trains were shut down. In Ireland, a man blocked the Irish parliament with a cement truck in protest of the country’s massive financial institution bailouts.

Europe told to relieve austerity down a bit by U.S.

European officials were told to slow down a bit during the protests by a top U.S. Treasury official going to Frankfurt. There is a large debate between the United States and Europe about what the real solution to the global economic crisis is. The Wall Street Journal reports that the debate is between austerity and stimulus. The United States of America firmly believes that a stimulus will work the best. Europe disagrees making increasingly more spending cuts and increases in taxes. The weak global demand is best fixed with the support of the lasting recovery rather than austerity, says Lael Brainard. Brainard is the U.S. Treasury Undersecretary for International Affairs.

Articles cited

Reuters

reuters.com/article/idUSLDE68S24620100929?type=marketsNews

Huffington Post

huffingtonpost.com/2010/09/29/spain-strikes-over-auster_n_743014.html#s146799

Wall Street Journal

online.wsj.com/article/SB10001424052748703431604575521833087264428.html?mod=googlenews_wsj