On the german news-front:
- Just breaking: the SPD has apparently decided its Chancellor Candidate for 2013. Peer Steinbrück, ex-finance minister in Merkel's first coalition, will be Merkel's challenger. The best choice. He recently called for the splitting up of german universal banks (deutsche- and commerzbank), picking up the suggestion from the Vickers report.
But my favourite Steinbrück piece in english remains: Germany's outspoken finance minister on the hopeless search for 'the Great Rescue Plan.' (from 2008, english, newsweek) featuring the "crass keynesianism" quote, aimed at Gordon Browne.
- On Banking Union: Weidmann of the Bundesbank is also against taking on historic liabilities, as were the three "northern" finance ministers early in the weekreports SZ (not going to happen)
- also on banking reform, a sharp attack on german "backsliding" by the euro-friendly economist blogger charlemagne The other moral hazard: If the euro zone is to survive, Germany too must keep its promises to reform
- the daily dose of CSU-politicians-throwing-their-weight-around comes from Bavaria's Finance Minister Söder. who wants a german veto at the ECB. "The one who is liable and pays, decides" (SZ, german)
3 comments:
It's interesting to compare the French and the Spanish budgets:
* French budget : 30 bill euros effort, with 20 bill tax increase, targetted on highest revenues, 10 bill spending reduction
* Spanish budget : 39 bill euros effort, mainly on spending cuts, and with tax increases by the VAT, ie for everybody
So even within austerity, there can be some policies difference.
I am getting ready to feel very sad as I watch from Britain what is unfolding in France. There is another way of doing things than the rampant class arrogance of our British government who don't give a toss about the people who created their wealth for them in the first place. They stole it from us before and they are stealing it again. For example the people who created the NHS are not the private companies who are going to benefit from its dismantling but the dedicated doctors, nurses and ancillary workers who will get nothing. And I think we are about to see France go about dealing with the economic situation in another way. Perhaps in part because they had a revolution over there, we never did really. We are still subjects, they are citizens.
French PM: Budget is about struggle and reconstruction
The French people are already braced for a budget to remember. Prime minister François Hollande has told them to expect “the most important fiscal effort in 30 years”.
Come on, fix this please, it's embarrassing.
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