European policy makers at odds as eurozone’s economic woes deepen
"The ECB’s position has been made much harder by the eurozone employing pro-cyclical fiscal policies" of spending cuts and tax increases that have weighed on growth, said Simon Tilford, deputy director of the Centre for European Reform, a nonpartisan London think tank.
The politics preventing a coherent eurozone policy effort "look formidably difficult," he said. "If they don’t act, we’re looking at another eurozone recession, and beyond that a long stagnation, rising debt ratios and worsening deflation pressures."