Of all people, the Germans have gone and stuck the boot into the fledgling Euro. By rejecting warnings from the European Commission about their swelling budget deficit, they have done just a little more to hasten the decline of the Euro to the status of Monopoly money
The warnings in question arise as a result of the Germans breaching the Stability and Growth Pact drawn up in 1997 (mostly by the Germans, ironically) and which limited Eurozone countries to a ceiling on their budget deficits of 3 percent of GDP. Clearly an intended shackle on high-spending governments, it was seen as a bitter pill that had to be swallowed if the Euro was going to attract investment and prove a success
But, it appears, that the success of the Euro is as nothing when compared to the prospect of losing an election. Germany’s economy is deep in recession, unemployment is already at 4.5 million and rising and Gerhard Schroder knows that unless he can dole out the largesse before the next election then his name will be added to that growing list
The German deficit is already at 2.7 percent and will assuredly go over the 3 percent barrier in the next few months. The German government have told the Commission to go and take a flying f*ck but has promised to reduce its deficit to zero by 2004 (and if anyone believes that, then I have a bridge in Sarajevo to sell them)
The ‘Stability Pact’ balloon is going up, filled with all the hot-air about ‘reform’
Still, I couldn’t be happier. If Gerhard Schroder has done his bit to hasten the demise of the Euro then my Valentine Card is already on its way to Berlin to tell him that he has a not-so-secret admirer in London
