Monday, May 07, 2012

Pro-Austerity Germany Mourns End of 'Merkozy Era'


The day after what panicky Germans are calling a "political earthquake," it is clear that millions of ordinary European citizens will no longer accept imposing and promoting austerity in the name of reform--cutting government spending during a severe recession instead of stimulating growth and job creation. Read more

That the ideology, or religion, of austerity has been dealt a death blow seems obvious to everyone except Germany's chancellor.

Increasingly, Europeans will question the leap from a single market to a single currency. The EU did not have to, was arguably not ready for and should never have entertained creation of the euro. The notion of a fixed exchange rate across radically different economies in retrospect seems ridiculous. 

The political implications of the Greek and French elections transcend Europe. Accent on political: politics is about power, getting it, keeping it, increasing it. Economics is about wealth. The political core of the economic crisis has been revealed.


Related: Neo-Nazis Gain as Austerity Gives Rise to Fascism

Copyright © 2012 Foreign Confidential™