He specifies the countries that are reducing government expenditures (I guess, I can’t figure out what he is claiming is being reduced).
If there are reductions of government expenditures they need to be offset by tax rate cuts in order that the fiscal policies are not deflationary. If we were in a recovery, it would take paired cuts to keep it going.
He's talking about Europe.
"The US, Britain, and Europe are together embarking on a sudden and severe tightening of fiscal policy"