Speaking Out

This manifesto is a powerful wake-up call for three sets of people: IMF senior managers who despite their own researchers evidence insist on deep austerity now in return for puny (and expensive) short-term funding; U.S. Republicans who are both bent on destroying the Obama presidency and on shrinking further an already low U.S. public sector; and some European politicians from countries that managed wisely their economies in the last decade (but with gradual phase-in of fiscal and structural reforms) and now demand from the others the same discipline and structural reforms, only here and now instead of phased-in over 3-5 years. Germany, Finland, and the like must relax their intransigence on the timing of the necessary fiscal consolidation for profligate countries and must help concretely other countries that have adopted and are implementing tough fiscal (including primary balances) and structural reforms but that nonetheless are pushed by markets towards unsustainable levels for refinancing their outstanding debt.

Gianni Zanini, World Bank (Consultant; former Lead Economist)