Austria Doing Germany’s Job Again

Frugality? Refusing to pay other countries’ debts? That was “old Germany.”

Austria

Now the Germans need a country like Austria to take care of the problem for them – just like the Austrians took care of Merkel’s migrant madness by closing their borders way back when.

‘Frugal four’ nations counter Franco-German EU initiative – Four EU countries have teamed up, rejecting Macron and Merkel’s persistent lobbying for a €500 billion rescue fund. Instead, they have their own scheme on how to save Europe from economic fallout amid the pandemic…

The four countries also indicated that they will neither agree to a mutualization of debt nor an increase in the EU budget. Their draft proposal was seen by the German Press Agency (DPA) on Saturday.

“Our objective is to provide temporary, dedicated funding through the EU budgetû and to offer favorable loans to those who have been most severely affected by the crisis.”

German Of The Day: Wiederaufbaufonds

That means reconstruction bonds. Or Eurobonds/Coronabonds light. Or Germany breaking a taboo and knuckling under to France to share debt with other EU countries, if you prefer.

Merkel

It’s hard to keep up with them. Politicians just can’t burn money fast enough these days.

German Chancellor Angela Merkel broke with her country’s longstanding opposition to raising money together with other – often poorer – EU countries. But the proposal made with French President Emmanuel Macron is limited in scale and duration, which could help her sell it to skeptics back home.

It consists of 500 billion euros ($550 billion) in loans and grants to help countries through the recession, and is viewed by some as a step toward stronger EU ties as the 27-country union faces challenges not just from the virus crisis, but from populist forces in member countries Hungary and Poland who want to loosen the bloc’s ties.

Werteunion ruft zu Widerstand gegen Merkel auf.

I Got Your Quantitative Easing For You Right Here, Pal

Imagine that. A nation state (member state) ought to have a say in how its money is spent. What a radical new concept.

Court

Germany’s top court has ruled that the European Central Bank’s mass bond-buying to stabilise the eurozone partly violates the German constitution.

The ruling relates to government debt worth €2.1 trillion (£2tn; $2.3tn) bought by the ECB since 2015, but not purchases in the coronavirus crisis.

The Constitutional Court in Karlsruhe says there is not enough German political oversight in the purchases…

The plaintiffs are a group of German academics, including a former leader of the far-right Alternative for Germany (AfD), Bernd Lucke. They argue that the purchases violate the EU ban on one eurozone member subsidising the debts of another.

It is now up to the ECB to explain how its mass bond-buying programme is “proportionate”. The Bundesbank could pull out if it is not satisfied, in three months’ time – which would be a big blow to the eurozone.

No Lines, No Crowds

No customers, no purchases, no spend money, no make money, no business, no future.

Crisis

‘No lines, no crowds’ — Germans stay home as stores begin to reopen after coronavirus lockdown – German consumers are counting their pennies rather than returning to shop in large numbers as stores gradually reopen after being locked down during the coronavirus crisis, the national retailers association said on Wednesday.

“Consumers are in a crisis mode, consumer sentiment is in the doldrums.”

It’s Only Money

Other people’s money. But still.

Money

The schwarze Null or “black zero” (meaning a balanced budget) was yesterday. A supplementary budget for 2020 at about 40 percent the size of the original one will now be approved by the German cabinet to help fight the economic woe being caused by the corona pandemic.

Germany tears up fiscal rule book to counter coronavirus pandemic – Berlin to raise €150bn in new debt to bolster ailing economy.

The EU Needs More Money From Germany

That’s a shocker. Gee. I wonder why?

EU

It’s not like the arrogance and hubris of EU technocrats let the second biggest contributor to their budget walk away from their, well, generous redistribution system or anything. No, not at all. It’s… What is it, anyway? Is this still the Europe you want, Germany?

The U.K. was a strong proponent of free-trade, EU enlargement and pragmatic cooperation to tackle security threats. It opposed a “fortress Europe” approach, pushing for a competitive and open economy.

Britain also became in recent years the EU’s second-biggest net funder. EU officials say the U.K.’s departure will leave an estimated €84 billion ($93 billion) hole in the bloc’s next seven-year budget.

Agreeing on the size and makeup of that €1 trillion-plus budget will be the first major post-Brexit fight. Efforts to cut the amount of money spent on the EU’s newer members in Central and Eastern Europe risk further embittering the bloc’s east-west relations, already scarred by fights over migration and democratic norms.

Spend More Like We Do

Says the EU. We don’t always know what we’re spending it on but we sure know how to do it.

Waste

As “German industrial orders fell more than expected in August on weaker domestic demand, adding to signs that a manufacturing slump is pushing Europe’s largest economy into recession,” the EU Commission advises Germany to spend more.

And EU knows all about spending other people’s money. It spent nearly four billion euros last year alone on things it can’t even account for – and most of the things it can account for are wasteful enough.

Konjunkturschocks“ – EU-Kommission drängt Deutschland zu mehr Ausgaben

Bundeswehr Update: This One Doesn’t Fly, Either

The Bundeswehr doesn’t have any money, remember?

But the little it has it burns as fast as it can. Among numerous other spending scandals, this one went originally like: The German navy will continue operations with its Lockheed Martin P-3C Orion maritime patrol aircraft until 2035, with Berlin having signed a $158 million contract for modernisation work to be performed over the next five years.

Now the word is that the costs have run out of control. What would the Bundeswehr do without Miss Management herself (Defense Minister Ursula von der Leyen)? She’s that good. Just like her buddy Angela Merkel, she’s too big to fail.

Es werde “kaum gelingen, alle Flugzeuge bis Ende 2025” flottzumachen, urteilt der Bundesrechnungshof.

German Of The Day: Milliardenloch

That means a billion-euro hole. You know, as in the ones that will be appearing in the coming German federal budgets?

Loch

The money has been rolling in to Berlin for years but it looks like those days are about to end. Germany’s current finance minister, Olaf Scholz (SPD), warns that the government will be missing some 25 billion euros by 2023. No new expenditures possible, folks. Not unless there are cuts somewhere else. Right. Good luck with that, pal. You’re with the SPD, for crying out loud (that stands for Spend other People’s Dough).

And it sure would be a shocker if Germany now used this as an excuse not to live up to its defense spending commitments, wouldn’t it? See how this works, folks?

Nach Jahren sprudelnder Steuereinnahmen droht dem Bund wegen der abflauenden Konjunktur ein 25-Milliarden-Loch im Haushalt bis 2023.

German Budget Surplus Offers German Politicians Further Ways Not To Spend It

The dramatic growth in Germany’s public sector surplus over the first half means the government has extra room for manoeuvre, Finance Minister Olaf Scholz said on Friday after data was released showing the surplus at a record high.

Scholz

“I’ll be looking into as many ways as possible not to spend any of it,” he said. Or could have said. And this is social democrat, too. This savings mania is a German thang.

And saving money is generally a very sound idea, I understand that. But how about considering giving that surplus back to the people you took it from in the first place? I’m just saying.

Der FDP-Politiker Dürr verlangte angesichts der hohen Überschüsse, den Solidaritätszuschlag abzuschaffen. Auch der Bund der Steuerzahler forderte eine Entlastung der Bürger.