Austerity isn't mindless, the reasons for the application of this draconian policy are obvious, governments have acted improperly and borrowed too much. It'S good to see that they are trying to find a middle way here however, in a globalized world countries like Greece, Spain, Italy and France have to regain competitiveness not just against other EU partners but more globally also. This has led to the belief that austerity - shrinking the state - is the only way, however this investment fund if allocated appropriately to projects which can have tangible benefits i.e. creation of employment, sustained stable growth and higher demand, coupled with the necessary reforms to rigid labor markets, and other structural reforms may have the potential to get Europe at least back on the right track. I would argue that some austerity is needed but cutting back isn't a panacea. A more dynamic relationship between the state and the private sector, smarter spending like what is seen in Finland for example can help innovation. The state shouldn't simply work to fix the negative externalities of markets policies but during a recession perhaps its time to re-consider Keynes's belief that it should support the creation of new markets and retain equity for further investment.