March 8, 2005
WHEN EVEN GERMANS DON'T LIKE DISCIPLINE:
Splits emerge as EU tries to change rules on fiscal discipline (Graham Bowley and Carter Dougherty, March 8, 2005, International Herald Tribune)
European countries met here Monday to finalize the redrawing of the European Union's Stability and Growth Pact, although in last-minute negotiations, they remained split on how much to water down the rules on public borrowing.In a widely leaked paper circulated in Brussels before the meeting, Luxembourg, which holds the EU presidency, proposed a broad rewriting of the pact, including a long list of mitigating factors that would let countries avoid sanctions if their budget deficits breached the pact's ceiling of 3 percent of gross domestic product.
These circumstances could include the costs of German reunification; sluggish economic growth; government investment in long-term growth through spending on research and development and costs incurred from structural overhaul in labor policies and pensions.
Don't forget "the sun coming up in the morning." Posted by Orrin Judd at March 8, 2005 7:27 AM
But of course it is America's lack of fiscal discipline that causes this problem. The latest prediction on the American budget deficit is 250 billion on a 12 trillion dollar economy or 2.1%.
Posted by: Bart at March 8, 2005 7:42 AMWhy the pretense? They should have the honesty to say that the French and Germans will do whatever they want for whatever reason.
Posted by: jd watson at March 8, 2005 11:38 AMI keep thinking of Coach Mechling, watching the track team at the first spring practice, knowing that McCarty was his most talented and least discplined athlete, who smoked and never worked out on his own, pointing to a light pole and saying "McCarty is going to drop about there." And sure enough, when McCarty, who had been far ahead of the other boys, got to the pole, he slowed to a jog.
The EU is going to drop about there.
Posted by: Robert Schwartz at March 8, 2005 12:03 PM