According to EurActiv, The European Commission is “firmly committed” to grant all the breathing space allowed by the Stability and Growth Pact to address “unusual events outside the control of the member states” with a major impact on their public finances, a spokesperson said.
This is serious news. According to recent reports Germany will have eye-watering one-off costs associated with the refugeee crisis. So the solution is simple folks, let’s change the ‘economic pact’ that underpins the Euro.
Despite unprecedented unemployment in Southern Europe, Germany has insisted that the fiscal pact be preserved, arguing that austerity is good medicine.
Now Germany’s looking at possibly unpopulat tax rises to pay for the refugees, so why not change the rules of the ‘fiscal fact’?
After all, Germany runs the Eurozone in Germany best interests, so that’s not really a surprise is it?