Unions stage massive protests against European austerity

Saying “no” to austerity, Europeans marched in cities around the continent Wednesday to demonstration government cutbacks in social systems and increased taxes meant to lift countries out of the European debt crisis. Europeans are upset that while governments spent billions to rescue banks, ordinary citizens were being forced to accept the consequences of austerity. As the protests raged, a U.S. government representative seemed to side with the demonstrators. The representative, a top United States of America Treasury official, said it was too early within the recovery for European governing bodies to abandon stimulus and embrace austerity.

Austerity gets a lot of awareness

A day of austerity demonstrations was shown all throughout Europe on Wednesday. There was a march across Europe with hundreds of thousands of people. As outlined by Reuters, trade unions were those who started the protests, and they say the poorest of citizens could be hurt probably the most through the austerity that will slow the economic recovery. 12 European capitals had protests in them organized by trade unions in order to say they did not like the concept of spending cuts and pension and labor market reforms. Banners were waving in Brussels, Belgium saying “No to austerity” and “Priority to jobs and growth” with a gathered crowd of 60,000 in Europe.

Austerity focuses on social programs

There is one major reason that the austerity demonstrations in Brussels are happening. It is because member states with high joblessness are running up deficits to fund their cultural systems which lead the European Union Commission to come up with the proposal of penalizing these member states. The Huffington Post reports that the EU proposal is something that Germany supports the most. Of course, that means the country of France disagrees with it. France doesn’t like the idea of strict rules deciding things and thinks that is should really just be sanctions. Elsewhere in Europe, Greek doctors and railway employees walked out. Spanish workers shut down trains and buses. One man in Ireland used a cement truck to demonstration. He was protesting the financial institution bailouts within the country by blocking Irish parliament.

United States explains austerity is not supporting Europe much

European officials were told to slow down a little through the demonstrations by a top United States Treasury official going to Frankfurt. The Wall Street Journal reports that Americans and Europeans disagree about whether stimulus or austerity is the solution to a weak global recovery. The United States of America firmly believes that a stimulus will work the best. Europe disagrees making more and more spending cuts and increases in taxes. U.S. Treasury Undersecretary for International Affairs Lael Brainard said with weak global demand and low inflation, supporting a lasting recovery, not austerity, must continue as the primary objective.

Citations

Reuters

reuters.com/article/idUSLDE68S24620100929?type=marketsNews

Huffington Post

huffingtonpost.com/2010/09/29/spain-strikes-over-auster_n_743014.html#s146799

Wall Street Journal

online.wsj.com/article/SB10001424052748703431604575521833087264428.html?mod=googlenews_wsj