In the land where the words for "debt" and "guilt" are alarmingly similar, and the chancellor seems to be named for a pubic wig, are we surprised that silly proposals for financial regulation are a regular feature? Not really.
Germany will amend its constitution to ban excessive public borrowing and set up a strict repayment schedule for the public deficit caused by its latest fiscal stimuli, chancellor Angela Merkel said on Tuesday, underlining Berlin's rising concern about the erosion of fiscal discipline in Europe.The announcement came as Ms Merkel unveiled a two-year €49.25bn package of growth-boosting measures that, together with steps adopted late last year, will raise to 1.5 per cent of gross domestic product the amount the government plans to spend on fighting the economic crisis this year.
Yes, we are going to return Europe to fiscal discipline. (But not before I slip through this $70 billion spending package).
Germany to ban excessive borrowing [The Financial Times]
Posted by guest , Jan 13, 2009 12:23PM
"fiscal discipline in Europe"
Ok, what?
Posted by guest , Jan 13, 2009 12:24PM
Too levered, didn't read.
Posted by guest , Jan 13, 2009 12:24PM
Too levered, didn't read.
Posted by guest , Jan 13, 2009 12:27PM
What difference does it make to pass laws about fiscal discipline when debt limits can be easily raised by future elected officials?
Posted by guest , Jan 13, 2009 12:52PM
who is john galt?
Posted by guest , Jan 13, 2009 12:55PM
the good news is, those of us who work for German banks are all civil servants as of today.
Generous pensions and two weeks at a spa in Baden Baden for all!
Posted by guest , Jan 13, 2009 1:32PM
Just go back to the Weimar formula and print up the douchemarks.
Posted by guest , Jan 13, 2009 1:37PM
2 weeks? Try 6 weeks. Euro's love the hols. And when they are actually in the office they don't do shite.
Most Euro banks are just pension funds. People go to an office until they are 55 to 60 years old and retire getting hug benefits. Not bad for working for a utility that does not pay a dividend.
We live in a world without moral hazards. Bring back moral hazards and the Dukes of Hazards since we love those Daisey Duke shorts.
Posted by guest , Jan 13, 2009 1:43PM
The german chancellor is Angela Merkel. A pubic wig is a merkin. Or as EP would say: "I'm glad I'm not german. I'm proud to be a merkin"
Posted by guest , Jan 13, 2009 1:45PM
The german chancellor is Angela Merkel. A pubic wig is a merkin. Or as EP would say: "I'm glad I'm not german. I'm proud to be a merkin"
Posted by guest , Jan 13, 2009 2:24PM
The only reason the euro hasnt completely rallied vs the dollar is they are printing/lending just as many euros as we are printing/lending dollars!
Ohhh ye mighty Yen!!
Posted by guest , Jan 13, 2009 2:27PM
11 Or more likely people are anticipating a Euro rate cut this week.