In The Irish Times of yesterday Eoin Burke-Kennedy writes:
"The next financial crisis is coming and this time it will be a sovereign debt crisis. Not my words but those of German chancellor Friedrich Merz.
Speaking before the German election in February, the one that elevated him to the top job, Merz warned that governments had taken on too much debt.
He noted that several EU states, including France, Italy and Spain,now had debts that were bigger than the size of their annual economic output.
The French government collapsed last year while trying to push through a €60billion austerity budget in an attempt to rectify the problem.
Merz could have added the UK to that financial risk list. British prime minister Keir Starmer’s government is tearing itself apart trying to put the public finances on a more sustainable path, fearful of another bond market bust-up like the one that sunk former Tory prime minister Liz Truss."
But in the full article Eoin Burke-Kennedy never mentions anywhere that shortly after the election Merz managed to pass a bill in the Bundestag that allowed the German Government to change the law so that the incoming government could borrow even more money.
That this fact is not mentioned surely takes away from the logic of the argument?
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