German Government to Test Stimulus Instead of Austerity – SPIEGEL ONLINE

May 28, 2013 By dralfoldman in Austerity, Berlin, Business Administration, Euro Crisis, George Osborne, Germany, Growth, Keynesian, Neoliberal, ordoliberalism, Politics, Spain, UK Tags: Angela Merkel, Austerity, David Cameron, George Osborne, Germany, Politics of Germany, Southern Europe, Spain 11 Comments

Angela Merkel, the Chancellor of Germany

Angela Merkel, the Chancellor of Germany (Photo credit: Wikipedia)

This is an excellent and MUST READ article from Spiegel. Check it out!

German Government to Test Stimulus Instead of Austerity – SPIEGEL ONLINE.

If I understand the Spiegel article correctly Germany is ready to invest in Southern Europe in a sort of mini-Marshall Plan. This would appear to be a major turning point in German policy on austerity. This is a very shrewd move from Germany and will be welcomed with open arms in Southern Europe. It’s early days so far but it looks like Spain will be a test case.

If Angela Merkel can perform a U-turn on austerity, surely David Cameron and George Osborne can do the same?

Any thoughts?

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Europe to demand structural reform over austerity | Business | The Guardian

May 28, 2013 By dralfoldman in Austerity, Euro Crisis, Politics Tags: European Commission, European Union, France, German, Guardian, Labour economics 2 Comments

This is a MUST READ article in the Guardian which focuses on EC proposed structural reforms in labour markets. Check it out!

Europe to demand structural reform over austerity | Business | The Guardian.

This is a really important initiative to help improve EU competitiveness but it is not a short term measure to create jobs.

Short-term, jobs will only be created by Germany reflating her economy and giving the rest of Europe a chance. Because of the Euro and budgetary constraints, in order to break the impasse on job creation, German labour costs must go up because the rest of the EU’s labour costs cannot go down quickly enough; structural reform to labour markets is a medium term strategy.

Any thoughts?

English: EU members, Candidates, and other Eur...

English: EU members, Candidates, and other European states. (Photo credit: Wikipedia)

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