The austerity measures are needed to win back investor confidence and ensure a return to economic growth, said the chairman of the European Commission, Jose Manuel Barroso.
"I have emphasized the need for fiscal consolidation and structural reforms. It"s only if we look seriously to putting our own home in order can we hope to re-establish confidence in the economy and in growth", said Barroso as quoted by Reuters and Mediafax.
Many governments of the European Union (EU) announced budget cuts in older to help restore confidence in their economies, after investors realized that the issue of Greek debt could contaminate other countries in the Eurozone.
On the other hand, the European Trade Union Confederation (ETUC) considers that cutting public spending would harm recovery from the worst economic crisis in decades, especially if it is done in economically stronger countries.
"We called for this high-level meeting (with EU officials) out of despair at the prospects of growth in Europe as all countries, not just those in distress, move to cut their budgets". "The fact that all of them are taking these measures at the same time is our biggest concern", ETUC head John Monks said.
On Wednesday the ETUC announced plans to hold a "European Day of Action" on September 29th, to protest against the spending cuts.
Mr Monks said Germany should increase spending, for example by allowing wages to grow, to generate extra demand in the 16-nation euro zone.
Tradus de Cosmin Ghidoveanu The austerity measures are needed to win back investor confidence and ensure a return to economic growth, said the chairman of the European Commission, Jose Manuel Barroso.
"I have emphasized the need for fiscal consolidation and structural reforms. It"s only if we look seriously to putting our own home in order can we hope to re-establish confidence in the
