EuroEconomica, Vol 33, No 2 (2014)

Abstract

This article presents the effects of the fiscal austerity on the growth of GDP for the countries in Central and Eastern Europe. Austerity has become the watchword of all heads of state or government. Its effects are being felt increasingly in the pockets of citizens, including, or perhaps we should say especially in Central and Eastern European countries. Are the austerity measures taken the right answer to the problems currently facing the region? The paper’s findings invalidate the assiduously promoting by Eastern European countries of the fiscal austerity, this actually leading to a decrease in economic growth.