Things are not looking any better at European level either. Instead of discussing how to return to justifiable new borrowing after Corona, the EU Commission is working hard to relax the “strict” budget rules. As you know, these are those “strict” budget rules that have been broken at every opportunity since they were introduced.
Although the political representatives of all euro countries have made a high and sacred promise that they will be adhered to in order not to let the euro degenerate into a soft currency. Instead of adapting the political reality to the rules, the rules are adapted to the political reality. You could call that pragmatic. Because it really doesn’t make sense to stick to rules that nobody cares about anyway. But who should believe the European heads of government in the future?
This fits in with the fact that the German Bundesbank President Jens Weidmann requested the early termination of his contract, which ran until 2027 (!) Last Wednesday. For personal reasons, as he writes to his employees: “I have come to the conviction that more than 10 years is a good time to start a new chapter.” You could also read it differently: The most important lone warrior in the European Central Bank is exasperated on. Weidmann considered budgetary stability to be worth striving for and unrestrained indebtedness to be a mistake. The undertaking has become hopeless, the friends of the open money locks have long had the upper hand. Although the ECB is prohibited from financing states, it is indirectly buying up more and more debts from the euro states.
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