What happened in Germany now is possibly a trend for where Europe is heading. The savings package that Angela Merkel has proposed, to the dismay of the opposition who think the cuts are too anti-social, plays down the Bundeswehr for greater financial future security with less debt. Germany is going to save some €80bn the next four years. Setting an example for Europe is also given as an explanation. Leading by example. Is Merkel saying place no money in military matters. Especially not borrowed money.
Merkel hesitated against the wish of the US around the time of the financial crisis to borrow money for a stimulus. Common sense has it that if you don't have a need for it during a crisis don't put yourself in debt. Not high finance but the idea probably rubs well with the public. As does the idea of not spending more money than you earn.
I guess the Anglo-Saxon model was that you can borrow if you have ideas to make money from the borrowed money that earned more than the interest, up to a point, and that point seems to come earlier in Germany these days. I have also gathered that the mentally repugnant idea that you should increase consumption in Germany to stimulate the economy in Europe does not interest the Chancellor. Increase consumption when there are bad times!?
It has become very dangerous to have debt apparently. Britain has gotten a warning today for losing their triple A rating if they don't lower their debt burden more than earlier planned. Anne Applebaum writes about the German president that left because of some question of why Germany is in Afghanistan. If Britain all of a sudden is going to decide that it is more dangerous to increase their debt than leaving Afghanistan to its fate, things will start to happen. Germany apparently does not lower funding for their foreign military adventures but will lower costs significantly for their domestic use. President Köhler perhaps left office because he wanted to tell the truth which would then have been that foreign economical reasons are very important for the domestic security of Germany. A reason that then would be constitutional.
Excuse me for asking, but is not all this financial security going to cost growth and therefore cause debt problems for southern Europe? And what is going to happen with the other European countries if Germany has to save this much? Is Germany selfish again? A lot of people have written about this today but I don't get any answers on how unique the folding of your military is and what you are replacing it with, if at all?
Midsommar och Europa
8 timmar sedan