A consensus is starting to emerge that something needs to budge in terms of the current orthodoxy on the economics of austerity. In short, Europe, starting with Germany, needs to review the terms of the fiscal compact, loosen monetary policy and accept that cuts alone are not leading us towards recovery. If we continue where we are, the danger is that political instability of the kind that we are already seeing in Greece will spread, in some cases propelling extremists to the fore. The message from Europe's electorates in recent weeks has been consistent. Voters are saying they have had enough of bitter medicine that ... (full story)