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ekathimerini.com | Greece made largest fiscal adjustment, says EU paper published 'by mistake'
 " The paper, which examines the systemic impact of deficit reduction programs, was taken down from DG ECFIN’s site and Twitter account a few hours after being published but Kathimerini has a copy of the study and proof that it was published.
...The basic academic conclusion of the paper is that the simultaneous adoption of adjustment programs in the eurozone made it more difficult for periphery countries, like Greece, to achieve fiscal balance and regain competitiveness.
...Even though Greece’s current account balance improved by 2.3 percent of GDP during the period in question, Germany’s also improved by 0.6 percent, meaning that Germany essentially continued to compete against the eurozone periphery and pile pressure on the already struggling economies of the south.The projections in the research paper suggest that the contraction of Greece’s economy would have been 2 percent smaller during the last three years if fiscal adjustment programs were not applied at the same time throughout the eurozone. The negative impact of these programs on fiscal multipliers is most pronounced in Italy and then Greece, with a factor of 0.9. The author says the impact would have been smaller if the adjustment programs focussed more on revenues rather than spending".
  
Strange case ...