Germany leading by example
Here’s an example of what I just called Germany’s leading by example.
The link to the full article is here.
As I’ve been saying since the sovereign debt crisis days, Germany is concerned about its own public finances.It wants to get down below the 60% Maastricht hurdle in addition to being under the 3% deficit. If it doesn’t work in that direction, it loses its ‘moral’ standing to be able to lecture to others on fiscal probity, something it abandoned in the mid-2000s and that many in Germany contend led to crisis.
If you think the eurozone is going to relax its position on the stability and growth pact, think again.
This lack of stimulus is going to make for an election issue in Germany though — with the SPD’s Martin Schulz pushing the line that the CDU isn’t helping out the little guy. Schäuble is trying to head this off with a tax cut. Let’s see if his strategy works.
P.S. – also notice the blurb where the EC calls Germany’s current account surplus ‘not healthy’. That’s the Trump position – and he will use the EC’s admonition for his purposes.