Austerity is here to stay, says trenchant ECB

Austerity is here to stay was the grim message from the ECB, and especially for countries with high debt.

Ireland’s government debt, which is 123% of GDP this year, is the third highest in the EU after Greece and Italy, and it is not expected to fall to the requisite 60% for at least a decade.

Using the ECB’s term for austerity, one of the bank’s directors, Jörg Asmussen, said: “Fiscal consolidation is here to stay given the very high debt levels in the EU.”