In the aftermath of the most serious economic and financial crisis since the Great Depression, governments of most EU countries are confronted with both substantial fiscal deficits and high and rising public debt levels. A key policy concern in the coming years is therefore how to reduce both deficits and debt levels in such a way as not to endanger (but rather as far as possible to contribute to) the achievement of other important policy goals, notably: economic growth, employment, and correcting current account imbalances. This ETUI Policy Brief European Economic and Employment Policy, written by Franz Nauschnigg, draws on both theoretical and empirical considerations to propose growth friendly fiscal consolidation strategies in Europe.

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