As the German budget deficit soars Government parties plan drastic austerity measures

Following this year’s federal election the parties in the German grand coalition—Social Democratic Party (SPD), Christian Democratic Union/Christian Social Union (CDU/CSU)—are all determined to unload the consequences of the world economic crisis and the billions of euros awarded to the banks onto the backs of the electorate. This is the unmistakable message from the medium-term budget plan presented on Wednesday by Finance Minister Peer Steinbrück (SPD).

Germany will be heavily indebted at both the federal and state level for years to come and the government is seeking to recover these debts in a short period of time at the expense of ordinary people....

The government parties are intent on recouping these sums through drastic savings measures. Fearful of the reaction from the electorate, they are refraining from putting forward any concrete proposals until the federal election to the Bundestag...

The grand coalition, however, had already agreed at the end of May to write a “brake on debt” into the German constitution. The measure compels any future government to carry out strict austerity measures. From 2016 the government can only acquire new debt at a maximum of 0.35 percent of the country’s gross domestic product—i.e., a sum amounting to €8.5 billion—while states are not allowed to acquire any new debt after the year 2020.

Huge cuts and savings will be made in the coming years to achieve these goals. Steinbrück plans cuts totaling €37 billion from 2011 to 2013, with cuts to be made in all areas of spending—with the exception of debt and interest repayment...

“One does not have to be a trained political economist to know that with sums of such a magnitude only two possibilities remain,” the Süddeutsche Zeitung commented, “Either to drastically cut social expenditure or drastically increase taxes.” The Süddeutsche Zeitung concluded, “Due to the financial situation the next electoral period will be characterized by a struggle over resources that the country has not seen for a long time.”

http://www.wsws.org/articles/2009/jun2009/germ-j27.shtml

...and stay there, until the "government of bankers" topples?

by the ptb themselves.

failed political configurations lead to transformation.

unorganized masses can easily be stampeded into the "change" desired by the ptb themselves.

You know, Hegel reloaded.

but i thought hegel conceived of dialectic as unconscious?

:-)

But as I understand it, Ruskin gave people like Rhodes and Milner the idea that hijacking the left in the Empire would be a suitable antithesis to make the world a federated british dominion. Too bad they tripped on the line of scrimmage and let uncle sam take the ball after 1945. At least they knew some restraints, even though I'm no fan of their world view they had this feeling of noblesse oblige that guaranteed at least some bread crumbs for the poor...

Or maybe I just took a really long shot by adding Ruskin. But a triumvirate just always reads better. :-)

:kick:

or drowned out with protestations of denial.

It's just one of those uncomfortable topics that we Americans, would rather pretend doesn't matter and so, we find some convenient distraction (i.e. celebrity deaths) to avoid confronting it.

The German Corporatocracy's pronouncement that the only solutions to their deficit are for the German sheeple to submit to another shearing, is fairly significant. "Fearful of the reaction from the electorate" is, I feel, a significant factor, one that is utterly lacking in our flock.

I just figured, and was unfortunately correct in predicting, that this wouldn't garner the interest that it deserves.

It seems that I spend most of my time on DU hoping that I'm wrong. Alas, there are precious few here that get it, but I find that most here will richly deserve their fates.

All sheep share a common destiny, and it's closer than you think.

It's confusing.

This news is making some people in germany really angry. I see allot of SCHEISSE and WIXXER thrown around in the german forums. GOtta love it. As if the Germans could meet even 0,001% of their obligations.

Apocalypse, anyone? hehe.

is a tough one. We've (the whole world) allowed a tiny cabal to capture all of our economies and intertwine them into a single thread that they hold.

If the American economy, for example, falls it will bring down the economies of Europe and Asia as they are dependent on our market to sell into, likewise if Asia tries to separate it's currency from Europe it will collapse from overproduction and excess population, and if European currency becomes too dominant than the rest of the world cannot afford it's product, and on and on. Meanwhile, the cabal is over-extended to the point of collapse and is demanding that we pay for their folly.

So far, no one has dared to stand up to them except ALBA and you can read the slant regarding that. Honduras is a warning, how will we react to this threat?

Maybe it will be easier for them to actually do as promised when they write it into the Grundgesetz and not just into an EU-contract, but I doubt germany will ever achieve the goals stated. I don't see Steinbrück winning the elections, certainly not with a viable majority, so germany really may be taking the fiscaly rsponsible path.. But my.. That will cost allot of germans their bonuses and benefits.

I'd say anyone running for office after 2016 in Germany is up to an impossible task if what the article states is true and the rules won't be undermined like the Maastricht accords.
You'll have MILLIONS on the street.

So, cuts totaling €37 billion are planned. That's about 50 billion dollars. Germany's population is about 80 million. So every German is looking at ~$650 in cuts over 3 years, or about $225 a year. that's not that bad, actually. For perspective, if your taxes went up by an average of $225 per person per year for a limited period it'd be painful but far from disastrous. €37 billion in cuts is thus a pretty mild hit considering the size of their economy.

Germany's getting off pretty lightly; although their economy has suffered a big slowdown due to being export-dependent, it was in fairly good shape to begin with and they haven't had a mortgage boom/bust so they're not being overwhelmed by negative equity.