Merkel aborts a socialist plan

Just an idea sketched in the last hours by European socialists have already found an enemy that will be hard to beat: Chancellor Angela Merkel. The center-left leaders of the three big eurozone agreed along this week to offer comfort to those countries that were striving to reform their economy. The French Socialists, Italian, and- most importantly – Germans agreed reformist governments provide some relaxation in the strict fiscal rules imposed by Brussels.

“We both agree that there is no need for changes in the stability pact,” Merkel said in Berlin on Thursday. With this “both” referred to herself and the leader of the Social Democratic Party (SPD) and number two in the government, Sigmar Gabriel.  “The costs arising from the reform measures should not be considered in the criteria for calculating the deficit,” said Vice Chancellor and Minister of Economy in Toulouse, accompanied by his French counterpart, Arnaud Montebourg. On Thursday Gabriel insisted in an interview with Europe ‘s most widely read newspaper, Bild. “I wish to have a more honest debate. The Germans are today better than many other countries because we beat a tough reform program Agenda 2010. But then we also need more time to reduce public debt, “claimed Gabriel.

Its coalition partners have not concealed discomfort by his words. Democrats warn that a bad sign that jeopardizes confidence in the euro is; while the Bavarian Social Christians go further and talk about ” bombing of the German taxpayer.” The Social Democrats came to the elections to the Bundestag last year with a proposal to promote a major investment package for southern Europe. Despite suffering a loss to the hosts of Merkel, entered a government in which they have managed to impose a left turn indoors: minimum wage, retirement at age 63 in certain cases, dual citizenship for immigrant children… but European policy has remained unchanged until now. No sign of the SPD candidate for chancellor, Peer Steinbrück, got tired of announcing Marshall Plan.

The proposal for increased fiscal space the coordinated Gabriel, French President François Hollande, and thriving Italian Prime Minister, Matteo Renzi. Then Socialists in the European Parliament endorsed. But the head of Gabriel in the coalition government intervened on Thursday to contradict him. After speaking with him, Merkel told reporters that both share a ” conviction” that the current deal and offers enough flexibility. The shock can be paid off either in victory for Merkel or increasing friction in an Executive that has so far worked reasonably well, despite occasional tensions emerged as the fine print accompanying the minimum wage. But this issue is no longer of detail. It is of vital importance for France and Italy.

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Posted by Khalil Khan on Jun 20 2014. Filed under World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.