A more balanced policy mix would be more successful: Seven questions for Philipp Engler and Mathias Klein

Mr. Engler, Mr. Klein: In 2010, several European countries started implementing austerity measures to reduce their sovereign debt. Of these countries, you studied the southern European countries of Spain, Portugal, and Italy as examples. To what extent was the austerity policy successful there?

Philipp Engler: The austerity measures were not successful. The absolute level of sovereign debt has risen further, as has the public debt-to-GDP ratio in the three countries. This is why at this stage we think that the austerity policies were counterproductive.