Germany finally has managed to balance its budget for the first time in nearly 50 years.
Strong tax revenues and exceedingly low interest rates which brought down the cost of meeting its debts enabled the country to reach this goal.
The last time the German budget was balanced was in 1969.
Germany called on other eurozone countries to follow its austere example rather than try to stimulate their stagnant economies with borrowing or central bank money-printing.
France and Italy were joined by several other EU states, accompanied by the IMF and the OECD, in calling instead for public investment to promote growth. But Germany rebuffed this notion.
The European Central Bank is considering a quantitative easing programme which would buy eurozone government bonds in an attempt to boost growth and flight deflation.
Persistent low inflation makes it harder for highly indebted governments and households to reduce their debts.
A decision is due when the bank meets on 22 January.
Germany’s Bundesbank has never favoured this option, arguing that buying government bonds raises legal questions and could cost German taxpayers.
Comments
The war in which we Brits. apparently fought alongside the Germans - presumably against, as always - the French ?
Now we Brits. just have to pay off for the 2nd World War and all the subsequent ones since.
Then we will have balanced books !
Too bad that tight monetary policy is bankrupting most of the rest of us.
We all share one currency now, and there is nothing to stop the money from sloshing into one area and leave other areas devoid of cash. Germany is awash with Euros, so of course their interest is different to us southerners. German banks are bursting with Euros, they don't want more printed.
There has to be a mechanism to feed some of that money back to where it started when the Euro was formed, or the whole system will stop.
Oh, too late.