This country did not need to impose austerity and had easy to capital markets.
This is what happened.
1) Government embarks on austerity, to try and maintain the confidence of the bond markets. We must preserve the AAA rating for our government’s debt, says the finance minister.
2) Austerity reduces demand, helping create flat or negative growth.
3) As a result, deficit targets keep being missed. Additional austerity is imposed, and growth declines again.
3) Country loses its AAA rating, and the credit rating agency gives concerns about poor growth as an important factor for the downgrade.
4) This confirms our fears, says the finance minister. We must redouble our efforts to reduce our debt.
All of this was entirely predictable. The evidence has been in for a long time now
Only liars and imbeciles argue that austerity works other than when Keynes said it would.
How many countries were able to avoid the GFC through austerity? None!