Between Austerity and Growth

When it comes to Europe's economic dilemma, it's easy to incorrectly think of it as a binary choice:

If Europe, and especially its periphery, were to build on the structural growth agenda that it has already begun, it could pursue growth even as it implements needed budget discipline. The combination would avoid fiscal profligacy as well as the vicious cycle that comes from a single-minded focus on austerity. If the initial lift from structural reform cannot counteract all the immediate contractionary effects of austerity, it could surely ameliorate them—and lay the groundwork for a more impressive and lasting recovery.