The French Minister of Finance, François Baroin, concluded the G7 meeting in Marseille with a statement that an equilibrium had been found between the necessity for fiscal consolidation and the necessity to avoid a recession. What kind of equilibrium is he talking about and is this equilibrium stable?
The discussions in Marseille started on a fairly correct assessment of the situation: one needs to tackle the sovereign debts crisis and the global economy (and in particular western economies) is slowing down.