Chandler said that even Germany is starting to relax austerity policy for other countries like Italy and Spain.
The 8%-a-year growth of a decade ago is a distant memory, and an austerity policy is in full effect.
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Critics say the government's austerity policy has failed to kick-start the economy, which has been through two periods of recession since 2008.
Speaking at a news conference in Paris, he said the financial crisis was now under control and "behind us" but "what is hitting Europe is a recession... provoked by the austerity policy".
Also last week, the IMF cut its growth forecast for the UK, and its chief economist, Olivier Blanchard, urged the UK to rethink its austerity policy in the face of continuing weakness in the economy.
It is already clear that though Japan for long has enjoyed exceptionally cordial relations with Germany (neither side advertises this but it is a fact), financial officials in Tokyo are now pressuring their German colleagues to relax the austerity policy.
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There is a policy vacuum in Britain with austerity the only policy that its Government seems able to countenance.
The political risk to the euro zone's austerity-first policy approach has been all the greater because there is little hard evidence yet to demonstrate it works.
He also said the European Union's policy of austerity needs to change.
Regardless of Poland's growth, the country is enacting a policy of austerity.
Cameron's popularity has taken a beating as the government sticks to a strict policy of austerity to cut Britain's debts, slashing public sector jobs and welfare payments.
Voters in France and Greece, where political turmoil continues after an election failed to produce a government, are the latest in Europe to express their unhappiness about the policy of austerity.
Mrs Merkel has been involved in a dispute with French President Francois Hollande, who has argued that the policy of austerity first is not working and that the emphasis should be on growth.
As tax revenues have fallen over the past three years of recession, and austerity became the default policy of local governments, the public sector has been steadily hemorrhaging employees and cutting back on services.
And the European Central Bank (ECB) should counter the fiscal austerity with a looser monetary policy.
"France, " she said, "is sinking into an absurd policy of endless austerity because it is always about saying yes to Brussels".
This is mildly positive news for America and Britain, whose central banks are determined to keep monetary policy easy as austerity bites.
Welfare changes are pushing more and more families into financial hardship and austerity, as an economic policy, is consigning thousands of Scots to unnecessary unemployment or under employment.
Some in the FDP who voted against the ESM, such as Lars Lindemann, think the party should sketch out an alternative euro policy with more emphasis on austerity.
Under current economic policy thinking and practice, the austerity movement is doomed to failure.
He does not believe that the current European policy - the Berlin-Brussels austerity strategy - is correct.
Forth, people in Europe are too unhappy with the on-gong austerity and rising unemployment to concede to any policy initiative that will help banks.
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This issue is not much considered by mainstream economists, who are too busy focusing on monetary policy, the impact of fiscal austerity or the need for labour-market reforms.
The IMF and the financial markets would probably like to see a combination of all of these: long-term structural reforms to free up economies and put government spending on a more sustainable path, combined with some short-term relief on austerity and (with luck) easier monetary policy as well.
He also said austerity "demanded" a new approach to drugs policy, as incarceration was very expensive.
But it is in Europe where the potential gains from structural reforms are greatest and where the policy focus has nonetheless been overwhelmingly on austerity.
It seems that the US is at odds with G-8 leaders in Toronto with regard to extending the failed easy-money policy rather than taking the medicine of austerity.
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The first question is that we know the President -- American President has stressed out the necessity for Europeans to visit -- to design a policy to promote growth, rather than austerity measures.
Not long ago, European policy makers seemed stuck on the notion that austerity promotes growth.
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