We now have, like it or not, a surplus of satisfied borrowers. Satisfied in the sense of satiated, not at all happy!
So austerity is merely the recognition of this and a desire to return to prosperity, some growth, any growth, as soon as possible!
Mal-investment has occurred. This has to be removed from the system. Now is the time for that. The more that a sovereign borrows the more interest it will pay and then repaying the capital is hard. Attitudes have yet to change and recognize that debt is poison in many situations, despite, in fact because, of its previous ubiquity.