Countries using the Euro de jure Countries and territories using the Euro de facto Countries in the EU not using the Euro (Photo credit: Wikipedia)
Angela Merkel, chancellor of Germany. (Photo credit: Wikipedia)
This is an excellent article from Reuters and worth a read. Check it out!
Era of austerity has run its course, EU says | Reuters.
It looks like the EU is softening on its austerity policies and France and Spain will get a reprieve.
This will probably anger many Europeans where passions run deep, especially the Greeks, Cypriots et al, who have been force-fed “undiluted austerity medicine”.
On the other hand, German voters will be angry too because they still believe that austerity is the right policy. The German version of austerity, ordoliberalism, has its own intellectual foundation. Angela Merkel‘s government has not really been open with the German people on austerity. It will be interesting to see if the current discrediting of austerity impacts the German election results.
How are the Germans defending austerity (ordoliberalism) now?
Surely, Germany must reflate after the election?
What do you think?
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