![eu-crisis](https://www.amandla.org.za/remodel/wp-content/uploads/2011/11/eu-crisis.jpg)
By blaming the crisis on government spending, politicians and bankers argued that the only solution was to cut public spending, but this has actually worsened the debt crisis. Austerity measures have led growth to collapse across the EU. In Greece, GDP fell by 7.3% in the second quarter of 2011. Austerity has reduced governments’ capacity to pay back spiraling debts, leading to even higher debts. And, as speculators encouraged doubts on certain countries’ abilities to pay, the rates of interest soared – as happened to Greece, Ireland and Portugal – making the debts completely unaffordable.
{phocadownload view=file|id=68|text=Click here to download a PDF booklet “The EU Crisis – A Pocket Guide”|target=s}
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