The austerity demanded of the members of the Eurozone by Germany since the 2008 crisis seems to be no longer an unquestionable rule. At least if it is about raising the German economy. After years of ignoring those who demanded to face that storm also with public stimuli, now the coalition government led by Angela Merkel is the one who debates whether to inject 50,000 million euros to breathe oxygen into an economy on the verge of recession , as he warned yesterday Bundesbank The contradiction shows that Germany has sinned for a decade of excessive rigidity. Public spending can be an effective tool against economic slowdown in favorable financial scenarios, such as the German case. Its level of debt, for example, is around 60% of GDP, which according to social democratic minister Olaf Scholz would allow such an injection with the necessary strength to counteract the crisis that seems to be coming.
That the strongest engine of the old continent is in negative has ignited the alarms in the euro zone, aware that when Berlin sneezes, the rest catches a cold. And there are already several indicators that place us before a somewhat optimistic uncertainty.
According to the criteria of The Trust Project
Know more- Germany
- Angela Merkel
- GDP
- Crisis
- Editorial
Account adjustment Germany: less surplus of what?
PrintBCE: doubtful stimuli
Editorial Real recession risks in Europe