UDC 339.72.053.1(4-672 EU)
Biblid: 0543-3657, 66 (2015)
Vol. 66, No 1157, pp. 19-36
DOI:

Original scientific paper
Received: 29 Jan 2015
Accepted: 01 Mar 2015

THE IMPLEMENTATION OF THE AUSTERITY MEASURES IN THE EUROZONE DEBT CRISIS - THE LIGHT AT THE END OF THE TUNNEL OR A STEP TOWARDS THE ABYSS?

Dragičević Ognjen (Ognjen Dragičević, student doktorskih studija politikologije, međunarodne i evropske studije na Fakultetu političkih nauka, Univerzitet u Beogradu), dragichevic.ognjen@gmail.com

In this article, the author indicates the reasons why the austerity measures have failed to resolve the problems of public debt increase and recessions in the Eurozone periphery countries. The main cause for inefficiency of these measures should seek in incorrect diagnosis of the root of the current financial crisis in Euro area. More precisely, above mentioned cause should search in incomprehension of the austerity policy creators that the crisis is a product of cumulative consequences of constraints and weaknesses of the European Monetary Union (EMU), rather than irresponsible and wasteful behavior of the public sector of some EMU member states.

Keywords: debt crisis, austerity measures, European Union, Eurozone, European Central Bank, economic growth, international economic inequality