Posted on 04/04/2005 9:12:37 AM PDT by longjack
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EU-ECONOMICAL GROWTH Germany is in Last Place The European Commission has lowered its growth forecast for the Federal Republic this year from the original 1.5 per cent to only 0.8 per cent. Germany is in last place among the 25 EU states. The Red-Green government will also most likely violate the Maastricht stability pact once again.
However, the EU commission explained that the forecast for the debt is only provisional. Germany still has the chance, as Federal Minister of Finance Hans Eichel (SPD) has repeatedly emphasized, to meet the stability pact requirements again in this year.
That will be the case in 2006 at the latest, however, Almunia said, and referred to Brussels' expectation for a growth of 1.6 per cent for Germany in 2006. "This will permit the economy to push the deficit less than three per cent."
The EU commission would further monitor the development of the budget and economy in Germany closely, Almunia said. However, it doesn't see immediate need for action. In December, Brussels had put the deficit proceedings against Berlin on ice on the condition that Germany meet the pact requirements again in this year. Two weeks ago, the EU State and Government heads decided to reform the pact, under which the rules will be interpreted more flexibly. Europe Crawling, Germany Stagnating As in the case of Germany, the EU commission lowered its growth forecast for the entire Euro zone considerably. Almunia only expects an average growth in the twelve member countries of 1.6 per cent now. The EU commission had assumed 2.0 per cent in its fall forecast.
The commissioner attributed this development to the still high oil prices and the reserved domestic demand. However, Brussels expects that the oil price will drop from an average of 50.9 dollars per barrel this year to 48 dollars in 2006. Ireland recorded the highest growth rate with 4.9 per cent, followed by Luxembourg with 3.8 and Finland with 3.3 per cent. Opposition Criticizes Eichel Federal Minister of Finance Eichel today left the question open of whether he will accomplish his goal of a deficit of under three per cent this year. "We are trying everything ", he said, but added: "We won' t economize because of the considerably delicate economic situation. That would be a wrong answer". The Federal Government will make its new forecast on the basis of the tax estimates at the end of April. The opposition utilized the commission' s forecast as an opportunity to make new criticisms of the government. "In Six years the Red-Green coalition has taken Germany from the top spot to a relegation spot within the European Union ", CDU Budget expert Steffen Kampeter said. "We should be the masters of stability and the drivers of growth rather than the debt king and the team in dead last place." © SPIEGEL ONLINE 2005
Translated by longjack
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longjack
longjack
Newsflash for the Germans: If you want socialist goodies to redistribute you have to ACTUALLY PRODUCE THEM. This means that you actually HAVE TO WORK!
I hope Schroeder gets the credit. From great minds, come great ideas. His idea is the US is the problem. That won't create a lot of jobs, but it does get German votes. Like Chirac, he's a failure on domestic policy and an immoral fool on foreign policy.
An article the other day talked about the un-employed being hired for the asparagus harvest, etc. Today, the asparagus growers said they didn't want them.
Fun times ahead.
longjack
Well, he's still there but the jobs are all gone. He shows no signs of leaving and the jobs show no signs of coming back.
longjack
The problem, you see, is that they aren't doing Socialism "right". They must redouble their efforts! They must move further to the Left!
I never got the whole sprugel love affair, myself! (:
Not too many more nails needed to seal the coffin on the EUSSR permanently.
Oh no!
You didn't eat the sprugel did you??
;>)
longjack
I believe that's pretty much the way of it.
I'm reminded of the League of Nations which was created to prevent all future wars -- but which was powerless when Japan invaded Manchuria.
I'm reminded of our own Articles of Confederation which established a central government that had no real power to collect taxes and fund itself.
Sometimes, you can just see a political construction which has no future at all. The EU is one such beast.
1. Lower the work week to 30 hours. This will force employers to hire more people and the unemployment rate will be cut in half to only 8%.
2. Raise taxes to pay the 8% that are working to vacation in France. This will result in a massive increases in French spending for German goods and exports to France will skyrocket.
3. Print more money. This will provide a backup in case the tax increase fails to produce the necessary revenue and the vacationers in France run a little short.
4. Raise the import duties on American goods to 500%. The revenue stream from this source alone my be enough to provide the funding for the unlucky 8%.
5. Pass a law that all cars must get 100 MPG starting immediately. This will save huge sums that are currently being spent on the import of oil. Why didn't we think of this years ago?
6. Sue Bill Gates. If that fails try to get him to buy Germany and hope that he can develop Germany 2.0. in less than 5 years (including beta testing by the French.)
There's plenty more great ideas right where these came from but these should be good enough to get Germany started back on the road to recovery.
Germany has gone past the 3% annual debt limit imposed by Maastricht 3 years running. So they went to the EU and told them to change the rules.
I guess, then, your question above can be answered as follows:
If you are Germany or France, there are no penalties. Furthermore, if the rule ends up embarassing you, change it.
longjack
AHh i see, similar to the US education. Kids not doing well? Lower the standards.
Well put.
longjack
I read that they had set up a kind of "reverse auction" where the unemployed can bid on the LOWEST brate for a job.
brate = rate...........sorry....need for coffee
brate = rate...........sorry....need for coffee
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