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Across Europe, recent elections in several countries and opinionpoll results elsewhere demonstrate vividly that there is littlepublic enthusiasm for so-called "austerity" policies. Sovereign debt has undermined the euro and shaken the globaleconomy, but European governments trying to fight back by balancingtheir budgets have smashed headlong into a wall of voterdisapproval. So this weekend's G8 summit at Camp David has been focused ongrowth, which may appeal more to voters. To be sure, the world needs growth. Only boom times can reverse thecontraction that menaces social and political stability in theworst-affected countries. In Greece, for example, reducedgovernment spending and higher taxes led to a voter revoltprecisely because these measures did not offer any plausiblepromise of leading to real growth in the foreseeable future. On topof a dysfunctional economy and unsustainable social welfarespending, the financial crisis has forced ordinary Greeks to queueat soup kitchens as prospects grow every more bleak. Clearly, Greece and its neighbours need another solution. But anemphasis on growth could go awry. Too many voters - as well aspolitical leaders - cling to the notion that incurring still moresovereign debt, under one guise or another, is the way to geteconomies back into gear. That's wrong: sovereign debt is the problem, not the solution.Indeed Europe's so-called austerity of recent years is a misnomer:OECD data show that of the 17 euro-zone countries, only tinyEstonia actually recorded a budget surplus in 2011. Together, the17 merely trimmed their net deficit from 6.2 per cent of GDP in2010 to 4.1 per cent last year. If you're deeply in debt, reducingyour new borrowing by one third is hardly austere. There is however another path to growth, one that actually leadsthere. This involves unleashing the wealth-creation power ofprivate enterprise by, for example, letting labour markets operatemore freely, allowing more agricultural competition and sharplyreducing the regulatory burden on companies. Of course, some of these measures, too, will be resisted by labourunions and special interests. Any change that could putenvironmental protections at risk will also be widely assailed bygroups across Europe. But EU countries that take this approach to growth, while stilllimiting spending as tightly as voters will let them, have a chanceto create conditions in which business can create the growth theworld needs. That is how Greece, and the EU's other ailingeconomies, will be able to escape a cycle of unsustainable debt. The e-commerce company in China offers quality products such as Croissant Machines Manufacturer , Encrusting Machines, and more. For more , please visit Encrusting Machines today!
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