Germany needs to resist the euro's sweet-smelling poison
In Germany, we already have a homegrown example of the absurdities an EU bailout fund can bestow. Under the "fiscal equalisation" system that exists between Germany's states, if Berlin, for instance, spends €1, it receives 97 cents back from the less fortunate states. However, if Bavaria saves €1, it must give 97 cents of it to other states. This has the same consequence for both: saving doesn't pay.
Berlin's mayor, Klaus Wowereit, has recently demonstrated the absurdity of this system. He decided Berliners were to be offered free kindergarten places, which makes parents in Berlin happy and more likely to vote for his party.… Seguir leyendo »