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Old Feb 18th 2012, 10:14 AM
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Michael Michael is offline
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Default Re: Angela Merkel and European economy.

Originally Posted by NickKIELCEPoland View Post
No, Britain only started imposing cuts a year and a half ago, and Greece were living the good life until the bubble burst.

Germany, on the other hand, had a far higher retirement age than Greece, and a considerably higher one than Britain.
No bubbles burst in Europe. A policy of austerity was adopted (by Merkel and German government) which forced up interest rates. Once interest rates started rising, the debt situation in Greece, Italy, Spain and Portugal all went redline, causing a crisis. The crisis was caused by German policy.

Britain's fall came from the 2008 crash that took down Iceland and Ireland with their involvement in the US housing crash of 2008. Britain's own policies since 2008 mirror Merkel's policies, which is why Britain has also been suffering badly as well as most other European states.

Fact is that the policy of 'austerity' that has been adopted across Europe - driven almost entirely by the German conservatives (and the EB) has led to economic contraction across Europe. That is an epic fail.

When one's economy is facing recessionary pressure, imposing a policy of 'austerity' is insanely bad policy as it just makes every economic problem worse. Merkel is the champion of this policy in Europe. The Republican party in the USA and the Conservative party in UK have both been following the same policy with the same negative results.
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