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Tuesday, November 22, 2011

"Germany's Finances Not as Sound as Believed"

There may be politics behind this I'm unaware of (or not), but this is an interesting claim from Spiegel:

Germany's Finances Not as Sound as Believed, by Ralf Neukirch and Christian Reiermann, Spiegel: The German government likes to pride itself on its solid finances and claim the country is a safe haven for investors. But Germany's budget management is not nearly as exemplary as it would have people believe, and the national debt is way over the EU's limit. In some respects, Italy's finances are in much better shape.

When it comes to fiscal stability, frugality and responsible economic management, German Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble have only one role model: themselves.

The chancellor praises herself and her team for having "a clear compass for reducing debt," and insists: "Getting our finances in order is good for our country." ...

But it is debatable how much longer Germany can be seen as a refuge of stability and security. In reality, German government finances are not nearly in as good shape as the chancellor and the finance minister would have us believe. ...

    Posted by on Tuesday, November 22, 2011 at 12:36 AM in Economics, International Finance | Permalink  Comments (34)


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