From Bloomberg: France Declares Austerity Over as Germany Offers Wiggle Room



“We’re witnessing the end of the dogma of austerity” as the only tool to fight the euro debt crisis, [French Finance Minister Pierre] Moscovici said today on Europe 1 radio. “We’ve been pleading for a growth policy for a year. Austerity on its own impedes growth.” ...



With German Chancellor Angela Merkel campaigning for a third term in a Sept. 22 vote, policy making among Europe’s elected leaders has ground to a crawl ...

The European Commission on Friday gave France two more years to meet its budget deficit target because of the country's poor economic outlook within the recession-hit euro zone.



"This is decisive, it's a turn in the history of the European project since the start of the euro," Moscovici told French radio Europe 1 in an interview. "We have witnessed the ending of a certain form of financial austerity and the end of the austerity dogma."

There probably will not be any major changes in Europe until after Merkel's reelection.More from Reuters: French finance minister says Europe's deficit move marks end of "austerity dogma" I doubt that the era of austerity is over - some policymakers in Europe and the US have invested their entire reputations on austerity - but maybe Europe will slow down the adjustment period.