Rehn: €15bn cuts may not be enough
As the country’s debt crisis worsened with borrowing rates hitting a record high on international money markets, the EU economics supremo insisted taxes must rise and called for greater political consensus to stabilise finances and restore foreign confidence.
Asked if the four-year €15bn austerity package would be enough to balance the books, Mr Rehn warned it was “feasible” but depended on growth rates remaining on track. “I find it is important that, at the same time, there is sufficient flexibility to take further actions if needed in case the growth scenarios will not materialise as expected.”
