Germany's Inflation Dilemma Is a Threat to Europe
As tighter fiscal policy that would be workable in Germany would be unfeasible in countries like Italy that have amassed much more debt, an unduly orthodox finance minister could reignite the euro zone’s sovereign debt crisis.
As Tooze says: Europe’s recovery is still fragile. Europe’s debts are higher than before. The politics of eurozone governance is as unresolved as ever.
John Authers Bloomberg 22 oktober 2021
The future of Europe is at stake in the fight for Germany’s finance ministry
A fiscal conservative in the job and a new era of debt limitation could spell disaster for EU countries
In Merkel’s governments between 2009 and 2017, the post of finance minister was held by Wolfgang Schäuble. He became notorious as the pacemaker of the eurozone crisis. His constant demands for austerity put debtor countries under huge pressure. At the climax of the crisis, in 2015, he went so far as to suggest that Greece take a “time out” from euro membership.
Schäuble is a conviction politician. For him the rule of law – including European treaties and fiscal rules – is the embodiment of Europe’s highest ideals, the greatest achievement of western civilisation.
Adam Tooze The Guardian 20 October 2021
https://www.theguardian.com/commentisfree/2021/oct/20/future-europe-germany-finance-ministry-debt-eu
Adam Tooze is the author of Shutdown: How Covid Shook the World’s Economy
https://englundmacro.blogspot.com/2021/09/how-covid-shook-worlds-economy-by-adam.html
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