American economist Nouriel Roubini believes that Europe needs to boost growth instead of push for austerity. Roubini, who is the chairman of Roubini Global Economics an economic consultancy firm, explained that governments in Europe should lower taxes and increase salaries to boost growth rather than insisting on austerity and continued saving. The famous economist Nouriel Roubini gave his opinion in an interview to a German newspaper.According to Roubini, the German government should give its citizens incentives to go on holiday in countries in the south of Europe that were affected by the debt crisis to help those states recover. Germany is one of the strongest economies in the EU.
Some leaders in major European countries have already shifted their rhetoric from austerity to growth, as tax increases and cuts in government spending have exacerbated the economic downturn, causing deep recessions in some euro zone countries. But Germany still insists on austerity as a way to bring budgets under control.
Roubini believes that the savings madness must be stopped. Governments must lower taxes and increase wages. His expert opinion is that Europe needs growth.
One recipe to do that is the German government to give every German household a 1000 euro ($1,250) travel voucher, thinks Roubini. However, it should only be used for holidays in crisis countries. The expert thinks that this will help boost growth there. In addition, everyone who buys a holiday home in a southern European state should get a tax bonus, he added.
Nouriel Roubini is an American economist, chairman of Roubini Global Economics, an economic consultancy firm. He also teaches at New York University's Stern School of Business.
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