THE EU’S ECONOMIC CRISIS AND ITS SOLUTIONS: LAVTIAN CRISIS AND RECOVER, IS IT AN AUSTERITY VICTORY?

In EU there are many the debates opened about the current crisis; first of all because what the EU is living during the last 7 can be defined as the longest and the most bundersome economical crisis of the last 100 years. AH the debates are focused on solutions without any critical analysis on the factors that had provocated such event; in such scenario we find first and foremost a clear division in two schools of thought, ascetics and critics of austerity. By this paper we would analize critically the case of Latvia which is a particular case of post crisis recovering due to the adoption of policies such as fiscal consolidation and internal devaluation that according the mainstream economic lecterature represent a great pattern of recovering by austerity. But studing more deeply such case we could easily say that the effectiveness of the “, success story” seems far from obvious.