Wednesday, February 15, 2012

German Twin: "Frau Nein" and "Baron Austerity"

Pr. Krugman, 3 years ago wrote that the German chancellor Angela Merkel is the “Frau Nein” because her and hers economic officials were the biggest obstacles to a much-needed European rescue plan.[1] Nothing has changed since that year regarding the German financial policy. The only that have change since then, is Mrs. Merkel’s finance minister. In 2008 was Peer Steinbrück and at the present is Mr. Wolfgang Schäuble, the “Baron  Austerity”.

"Frau Nein" and "Baron  Austerity", are the main architect of Europe’s disastrous mismanagement of the euro-zone debt crisis, can keep pretending that harsher doses of fiscal austerity will restore Greece and Europe’s other troubled debtors to economic health. They can recognize that only a combination of greater fiscal breathing room and pro-growth reforms — like opening up closed labor markets, breaking up state monopolies and streamlining bureaucracies — can achieve the desired result. But slashing wages, jobs and public spending across the board, as Europe demands, will only deepen recession.

The irony is that the leading architect of the austerity programme in Greece, the IMF senior employee Poul Thomsen has admitted that...

its emphasis on fiscal consolidation has failed to work, and said economic recovery will only come if the crisis-hit country changes tack and focuses on structural reforms. [2]. And what is the suggestion changes from the IMF; NONE
The oxymoron is that the new bailout program that created from troika (IMF, ECB and EU), doesn’t contain a single line or word regarding the growth or structural reforms(as the digitalization of the tax system). They have only austerities applications and recommendations.

But the aim of the German twin us one: the expulsion of Greece from Eurozone and the making of the German EU. Together in this course is the axis of the AAA EU states like Finland and Holland.


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