Lord Ciansworth on 01 January 2012
| Kasz216 said: It's all a matter of forcing irresponsible countries to cap spending at +10% of revenue or so, while actually enforcing it and having regulators check out all the "budget tricks" countries use to hide how much they're really spending. |
While spending caps will be introduced in a new EU treaty next year, the seemingly perpetual recession such severe austerity would cause makes it no less likely that troubled states will be able to acquire credit from the markets at sustainable interest rates.
The European Central Bank being granted the power to operate as a 'lender of last resort' is the best solution on the table. Unfortunately Germany seems to be taking a strong stand against such a move, making it a political improbability.
