there's a good article on mises.org [ austrian economics website ]
The Myth of Austerity - Philipp Bagus - Mises Daily
it's making a point that is often made here, though under-represented given the media attention to anti-austerity policies. Essentially, that austerity is a misnomer for living within one's means, and that gdp and the associated growth calculations are not a good way to judge the success or failure of an adjustment.
it also relates the benefits of bringing govt spending back into line with its means, namely that more capital is available for private enterprise and this is a better basis for full employment than unsustainable govt over spending.
I'm wondering if opinions have changed as we head into the second half of the budget balancing program. Is it better to see it through, with signs that the debt burden will be significantly eased by the expected shift of the bank bailout burden to the ecb, or is it find some other solution at any cost (e.g. default)