Wall Street Journal
May 20, 2012
Europe is back on the right track. With François Hollande as the new French president, we have made a significant step toward growth and the revival of the damaged European economy. Mr. Hollande's plan to present the June European summit with joint French-German proposals for a growth pact is right, and—in these turbulent times—finally a ray of political hope.
Continuing the harsh austerity policies that German Chancellor Angela Merkel and her conservative colleagues have pushed until now would lead one European country after the other into recession. Dramatic economic news from Spain, the United Kingdom and of course Greece provides gloomy examples.
The Merkel dogma "Yes to growth, but no to debt" can only be understood as a polemic, an ideological statement. Because it makes no sense for the economy or for society.
Should companies that seek to grow not be allowed to take out loans anymore? Should states, in order to fight recession and unemployment, not assume debt? If that is the line of argumentation, what can possibly be the result of Wednesday's informal summit on European growth?
More
No comments:
Post a Comment