Things Are Serious When Germans Decide to Increase Spending
Skerdian Meta • 1 min read
The ECB has been calling for European governments to increase fiscal spending since early last year, as the Eurozone and global economies were weakening. The call was directed mostly at Germans, since other major European countries such as Italy, France and Spain have a problem with the deficit.
Germans were ignoring the ECB, but life has changed after coronavirus. Now Angela Merkel sounds worried. She made some comments a while ago, so it seems like they will finally open the purse. But, she thinks that most of the population will get the virus; that’s worrying.
- Our objective is to slow down the spread of the coronavirus
- It is about winning time in slowing the spread of the coronavirus
- The experts say that 60-70% of the population will be infected by the coronavirus
- The goal is to maintain economic life
- Says that countries should not isolate each other in Europe
- Without vaccination, 60-70% of the population is at risk
- We must have a coordinated European economic response to the situation
- Every country must contribute efforts to counter economic impact of the virus
- We will do whatever is necessary in facing the current crisis
- Says will give liquidity help to companies this week
- Looking carefully at European Commission’s proposals to counter virus impact
- The financial package won’t fail because of Germany
- Does not think that closing borders is an appropriate response
Although, these are still just words. I think we are all still waiting on the day that they will actually loosen the purse strings instead of continuing to talk about it endlessly as they are doing now. Again, more liquidity might help, but only after coronavirus is gone, otherwise money can’t do much.