Who doesn’t know what he’s driving at.
Germany was billed as Europe’s growth driver. Now economists are saying: Not so fast – Huge investment pledges and major fiscal changes had bolstered hopes that Germany could give the euro zone economy a much-needed boost, but economists are starting to question if — and when — that will happen.
“The actual spending is slower than many of the more excitable pundits had expected. In Germany, it takes time to spend money.”
They all run out of other people’s money eventually.
German welfare state ‘can no longer be financed’ — Merz. The German chancellor has called for a welfare reform, putting him on course for a possible clash with the SPD.
“The welfare state that we have today can no longer be financed with what we produce in the economy,” Merz said in the town of Osnabrück.
The coalition partners had already agreed to reforming the social insurance system, which covers health insurance, pensions and unemployment benefits, due to rising costs and gaps in the federal budget.
The chancellor acknowledged that making cuts to social welfare would not be easy for the center-left SPD, but called for the two parties to work together.
It’s easy, Germany. You can do it too.
The best part is that there are never any consequences… Right? Even when spending the money you don’t have is never actually spent.
Germany’s borrowing spree plans face a reality check – Investors would be wrong to overstate concerns about a debt surge by the country.
Germany has had an abrupt awakening on the need to increase defence spending. The country enjoyed an oversized peace dividend for years: before the Berlin Wall fell, west Germany spent almost 3 per cent of GDP on defence. In the three decades after 1993 that ratio dropped to around 1.2 per cent annually. Military capabilities fell commensurately.
Since Russia’s attack on Ukraine and the election of a US president given to venting misgivings about European allies, a hectic scramble has ensued to make up for lost time. As chancellor, Olaf Scholz declared a “Zeitenwende” (or historical turning point) and parliament approved a €100bn debt-financed special fund for defence spending…
Nevertheless, markets would be wrong to overstate the German debt surge. The government’s ambition will probably be thwarted when the plans get in contact with reality. Appropriating borrowing permission is much easier than actually spending it. Scholz’s military special fund is a case in point. Up to April, halfway through its life, only around a quarter of the money has been disbursed.
What an original idea.
They should start doing that in US-Amerika too.
Germany updates: Berlin to end migrant rescue NGO funding – The German Foreign Ministry said it would no longer fund NGOs rescuing migrants in distress at sea. Meanwhile, police launched a nationwide operation targeting people suspected of inciting hate online.
This is why we are going to create a new ‘super–high-tech ministry’ for research, technology, and aerospace.
Germany to create ‘super–high-tech ministry’ for research, technology, and aerospace – New governing coalition also plans to woo scientists from abroad and make it easier for universities to collaborate with the military on defense research.
The announcement is one of several nods to science in the 144-page agreement, unveiled on 9 April following weeks of negotiations between the center-right Christian Democrats (CDU) and its sister party, the Christian Social Union in Bavaria (CSU)—who together won the most seats in February’s federal elections—and the center-left Social Democrats. The agreement is expected to be formally approved by the three parties by early May, paving the way for CDU leader Friedrich Merz to be elected chancellor.
To the bottom.
You’ll never catch us! As in U.S.
Germany’s spending push drives up borrowing costs across Eurozone – Investors warn that higher bond yields could make it harder for members of the bloc to increase defence spending.
A surge in Eurozone government borrowing costs as a result of Germany’s planned defence spending spree will intensify debt pressures on other countries in the bloc and could make it harder for them to mount borrowing campaigns of their own, investors have warned.
Except into debt?
“Blessed are the young for they shall inherit the national debt.”
German parliament approves Merz’s historic spending surge – Germany’s parliament approved plans for a massive spending surge on Tuesday, throwing off decades of fiscal conservatism in hopes of reviving economic growth and scaling up military spending for a new era of European collective defence.
The approval in the Bundestag hands conservative leader Friedrich Merz a huge boost, giving the chancellor-in-waiting a windfall of hundreds of billions of euros to ramp up investment after two years of contraction in Europe’s largest economy…
“The politician’s greatest asset is credibility. With these embarrassing actions, Mr Merz, you have already completely squandered yours. The voters feel betrayed by you, and rightly so.”
Germany is not back. And it won’t be coming back until its politicians respect the will of the German electorate. This is not the government Germans voted for.
Germany is back, says Merz after historic spending deal – Germany’s conservative leader, Friedrich Merz, has clinched an enormous financial package to revamp defence and infrastructure, ahead of a crunch vote in parliament next Tuesday.
Merz, who aims to lead a government with the Social Democrats in the coming weeks, is in a rush to push through a big boost in spending on defence and creaking infrastructure…
“This is nothing less than a financial coup.”
PS: And who says they have the votes to push this through next Tuesday?
You must NEVER relax the debt brake, Germany.
Relax Germany’s debt brake, says Angela Merkel – Former chancellor’s memoirs back reform of borrowing cap that she introduced into constitution.
Former chancellor Angela Merkel has called for Germany to relax its “debt brake”, in a sign of the growing political pressure to overhaul a borrowing cap that many economists say is too inflexible.
Merkel, who served as chancellor between 2005 and 2021 and introduced the debt brake into Germany’s constitution, made the proposal for change in her autobiography Freedom: Memories 1954-2021.
Right? It’s always the answer. Just look at US-Amerika.
We should be commending the Germans for not going down that deadly road, not smirking at them.
Schadenfreude reigns as Berlin pays the price of its tough line on debt – “It’s karma, no?” said one European official.
Germany has long been the European Union’s penny pincher par excellence — a paragon of fiscal rectitude in contrast to its spendthrift neighbors. But now its insistence on balancing the books is coming back to bite it.
Observing Hermann 