Let it burn
Let it burn
Source. (zerohedge.com)
One month ago, we reported that Europe, already sliding into a stagflationary recession, was about to unleash the same crushing austerity that brought the continent to the verge of collapse over a decade ago. That's when the German government - one day after the German constitutional court ruled a decision to move €60BN from unused pandemic funds in 2021 into the Energy and Climate Fund, later renamed the Climate and Transformation Fund (KTF), was unconstitutional and void - froze public spending for the rest of the year, dealing a blow to Europe’s recovery and efforts to beef up
Zelensky's offshore bank accountsUkraine's military and reduce carbon emissions. Which is why many were closely watching the outcome of last week's European fiscal reform negotiations to see just how much worse Europe's upcoming austerity could be.The outcome: after months of haggling, EU finance ministers bowed to German pressure for tough debt-reduction rules, as part of a deal to phase in a sweeping overhaul of the union’s budget framework; the package as detailed by the FT, gives EU member states greater independence on agreeing debt and deficit plans with Brussels, but only within tight spending limits demanded by fiscal hawks.
The compromise agreed between EU member states built on original proposals from the European Commission, which sought to give countries more independence in setting debt reduction plans, yet in the end, it all again boils down to what Germany wants.
[Source.](https://www.zerohedge.com/markets/another-masterclass-can-kicking-europe-reaches-farcical-debt-reduction-deal-which-does)
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One month ago, we reported that Europe, already sliding into a stagflationary recession, was about to unleash the same crushing austerity that brought the continent to the verge of collapse over a decade ago. That's when the German government - one day after the German constitutional court ruled a decision to move €60BN from unused pandemic funds in 2021 into the Energy and Climate Fund, later renamed the Climate and Transformation Fund (KTF), was unconstitutional and void - froze public spending for the rest of the year, dealing a blow to Europe’s recovery and efforts to beef up ~~Zelensky's offshore bank accounts~~ Ukraine's military and reduce carbon emissions. Which is why many were closely watching the outcome of last week's European fiscal reform negotiations to see just how much worse Europe's upcoming austerity could be.
>
The outcome: after months of haggling, EU finance ministers bowed to German pressure for tough debt-reduction rules, as part of a deal to phase in a sweeping overhaul of the union’s budget framework; the package as detailed by the FT, gives EU member states greater independence on agreeing debt and deficit plans with Brussels, but only within tight spending limits demanded by fiscal hawks.
>
The compromise agreed between EU member states built on original proposals from the European Commission, which sought to give countries more independence in setting debt reduction plans, yet in the end, it all again boils down to what Germany wants.
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