Nouriel Roubini, co-founder of Roubini Global Economics LLC, said the fiscal compact will deepen the euro area recession next year, even as countries such Germany and Austria will be obliged to cut deficits.
“Next year we are also going to have austerity in the core of the euro area because the newly agreed fiscal compact says that even Germany, Netherlands, Belgium, Finland and Austria have to cut their deficits,” Roubini told reporters at a conference today in Berlin organized by IG Metall, Germany’s biggest trade union.