German Complacency Poses Serious Threat
Wolfgang Münchau, Financial Times | December 1, 2008
Germany's persistent boycott of a coordinated European response to the economic crisis has serious implications both nationally and for the EU. ++ There will be no decision about a German stimulus package until February 2009 at the earliest – clearly too late. ++ Chancellor Merkel and Finance Minister Steinbrück are heading for a self-made depression. ++ The correct response would be to lower the VAT and implement temporary income tax reimbursements. ++ The conviction that economic policy is structural will be crippling.
