Austerity alive and well in Europe

To listen to some European leaders, especially in France, you would think austerity was over and the eurozone was going full steam ahead to revive economic growth.

In a change of tone, European Commission president Jose Manuel Barroso said last month that austerity — cutting public debt by reducing spending and raising taxes — had reached the limits of public acceptance.

In reality, the shift is more in words than deeds. The rhetoric has changed but there has been no policy U-turn.