IMF - no need to adjust austerity targets in Europe
WASHINGTON Oct 8 (Reuters) - Fiscal adjustment in periphery countries in the euro zone does not need to be adjusted unless growth slows significantly, the International Monetary Fund said on Tuesday.
Jörg Decressin, the deputy director of the IMF's research department, said austerity in countries like Portugal has already been less this year than in previous years, while growth is likely to rebound. These countries are struggling to tame their deficits while coming out of a prolonged recession sparked by a sovereign debt crisis across the currency bloc.
"Only if growth were to disappoint in a major way, would one have to go and revisit this," he said about the austerity targets. "But the pace as a whole strikes us now for this year and next year as appropriate."