German Austerity Still Quite A Rarity

Despite all the talk to the contrarity.

The German government didn’t reach even half of its planned savings in the federal budget in 2011. Only 42 percent of the spending cuts named by Merkel’s coalition government, comprised of the conservative Christian Democrats and the business-friendly Free Democratic Party, were actually not implemented…

The government is also falling behind on its targets for this year. Of the originally planned €19.1 billion in savings, less than half has been implemented…

This lapse (in reaching savings targets) is particularly embarrassing for the German government because the news comes just after 25 European Union member states agreed in early March to an international fiscal pact obliging them to adhere to greater fiscal discipline…

The aim of the pact is to make EU countries maintain binding austerity measures that leaders hope will contain the debt crisis and prevent countries like Greece from being able to pile up massive debts again.

And countries like Germany will show them how to do it, see? Next year, maybe. Or the year after that. Hard to say for sure.

 “It (the pact) is a milestone in the history of the European Union.”

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