[lbo-talk] France and Germany call for tougher treaty

[Wojtek S]

[WS:] It may well be, but it may be also a way into the abyss.  What
they seem to be calling for is further restrictions on deficit
spending in EU member states.  True, the US states cannot have deficit
spending, but the fed can and it can bail them out.  But the ECB
appears to be unwilling to go into any meaningful deficit spending,
which means that nobody in EU can do it if these tougher restrictions
are implemented.  This looks like the rupture in the Titanic - you can
neither contain it nor spread it out, so it will strain the structure
to the breaking point.  Unless of course this "forced march" to fiscal
austerity is just tough talk to make people toe in the line, as you
say, but deficit spending is on a way through a back door.

Wojtek

On Mon, Dec 5, 2011 at 12:13 PM, James Heartfield
<Heartfield at blueyonder.co.uk> wrote:
> As predicted by me back in May:
>
> Why the EU will thrive on Greece’s troubles
> Merkel says the Union is in trouble, but this is pure fearmongering designed
> to make people toe the line
>
> http://www.spiked-online.com/index.php/site/article/8915/
>
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