Growsterity

«Mr. Katainen, the 40-year-old leader of one of the euro area’s last remaining triple-A-rated countries, spoke more optimistically in his public comments of “growsterity,” a form of austerity that allows for some targeted measures to encourage growth, like Finland’s decision to grant tax relief for research spending by companies despite sharp budget cuts elsewhere.

“It’s clear that if you cut expenditures and raise taxes, it will weaken the growth in the short term,” he conceded. “But at the same time it will strengthen the credibility of the country. And once you earn back the credibility, the growth will follow, as we have seen in Ireland, for instance, or in Latvia, especially.”»

(…)“I have no money,” he said. “I don’t even put out bottled water for my guests. I just fill a pitcher from the tap and pour.”

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