Things Are Serious When Germans Decide to Increase Spending

Germans have been so stingy to help the European economy with a fiscal plan, but coronavirus has scared the hell out of them too now


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.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers