ECB ‘unwilling to face failure of its fantasies’
Honohan also attempted to bury the notion that it was the savage bailout terms imposed on us that has us in the current fix. He made it clear it was the huge budget deficit that prompted the cutbacks and not the impositions of the IMF and the EU, considerable though these pressures may be.
The governor and Trichet look united on the measures struggling EU economies need to take to redress the difficulties they themselves created. And the argument is pretty tight apart from the fact it ignores a simple principle of economics — that a depressed economy can’t rise from the ashes if further cuts are imposed.
