Tuesday, September 24, 2024

Is There A True Budget Crisis In Germany Today?

 Well....it comes down to five factors:

1.  The Ukraine-Russia war, with its refugees in Germany, military support toward Ukraine,  and significant cost of energy....is dragging Germany's budget a good bit.

2.  The FDP Party....of the coalition....runs the budget/finance business, and they are ultra 'keen' NOT to go and borrow tons of money from banks.

3.  The Covid era has given the country a poisonous 'gift'....in that the economy is sour and just not taking off.

4.  This move to E-cars and away from gas/diesel.....has a cost factor (the gov't has to say that now).  VW could possibly go under.

5.  Between infrastructure, clinics/hospital cost, funding the German army's modernization, the welfare budget, and all the 'gifts' to society....are now a burden.  Bridges are now a major issue in renovating, and the budget for the Bahn (railway) is highly demanding.

Three things need to happen....a correction to the economy, admitting Merkel's move toward dumping gas/diesel cars was stupid (now mandated by the EU), and something has to change in terms of Burger-Geld (the welfare fund)....meaning out-of-work people need to be forced  to participate and get a job.

There is a crisis and the economy is now among the top three problems facing the nation, but the SPD-Green-FDP coalition just isn't the folks to correct the problem. And if you wrote the fixes required...it'll unhinge about half the voters in some way.

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