Sunday | 27 Sep 2020
29 Apr 2010

The European experience with large fiscal adjustments

Daniel Gros / Cinzia Alcidi

0
Download Publication

3264 Downloads

The Greek government has promised that it will cut its deficit by about 10-12% of GDP. In their review of past episodes of fiscal adjustments in the EU, CEPS researchers Cinzia Alcidi and Daniel Gros find such a huge adjustment is possible but it will probably take at least five years, and might still leave the country in a highly unstable position.