with the IMF, based on further austerity and wage cuts, will worsen the crisis. They are unlikely to reduce both sovereign …

Fiscal policy in the Euro area is still dominated by austerity measures implemented under the institutional setting of …

, known as austerity. In opposition to fiscal contraction measures, expansive fiscal action policies are often called for to … initiate economic recovery. But the national interests of austerity's main proponent, performed in an asymmetric … intergovernmental bargaining arena, render most of the proposed expansive action plans impossible and hence austerity is expected to …