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Germany's Debt Crisis Deepens Amid Record Investments
422 sats \ 10 comments \ @TomK 18 Jul econ
Germany, the largest economy in the Eurozone, is plunging further into a debt crisis. Despite relatively low interest rates and a not fully recessed European economy, Germany struggles to maintain a stable budget without resorting to accounting tricks, shadow budgets, and so-called special funds. This precarious fiscal situation raises serious doubts about Europe’s capacity to engage in conflicts like the one with Russia without relying heavily on U.S. support.
The 2024 supplementary budget reveals a planned increase in new debt by €11.3 billion, totaling €50.3 billion. The German cabinet is set to approve this budget along with the 2025 draft budget, the financial plan until 2028, and a significant economic package on July 17. These plans include a record €78 billion investment in 2025, highlighting Germany’s financial challenges and strategic priorities.
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121 sats \ 1 reply \ @TomK OP 18 Jul
Germany's hypermoralism, the view that it is the world's social welfare office, will destroy the dream bubble in which the vast majority of Germans continue to vegetate.
https://m.stacker.news/40320
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45 sats \ 0 replies \ @Silent_Hodler 20 Jul
They are clowns who put foreigners before their own people. Like the whole EU.
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77 sats \ 1 reply \ @BitcoinAbhi 18 Jul
Germany is a great country. I've listened that people there are very hardworking. I believe that they will find a way out of it.
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13 sats \ 0 replies \ @TomK OP 18 Jul
those days are long gone. after all, Germans are the hardest working people in the world with the lowest number of hours worked per week
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45 sats \ 5 replies \ @Coinsreporter 18 Jul
Is it true that Germany bailed Greece out of debt?
https://m.stacker.news/40354
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24 sats \ 4 replies \ @TomK OP 18 Jul
Greece was the fig leaf for the general sovereign debt crisis and the bad investment in the German state banks, above all, massive capital was pumped in to prevent the German pension system from collapsing
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45 sats \ 3 replies \ @Coinsreporter 18 Jul
So, Greece actually did a smart thing by handing over their debt to Germany!
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24 sats \ 2 replies \ @TomK OP 18 Jul
No, the Greeks had to accept massive cuts in their pension system, for example, and privatize large parts of the state economy, such as the regional airports that were transferred directly to the German operator Fraport. The Greek national debt has not disappeared since then, it continues to rise - this is all a pure media illusion show that we are experiencing here in the EU
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45 sats \ 1 reply \ @Coinsreporter 18 Jul
Ahh, ok! So it was like a business deal where one company that's running in loss is taken over by another country only to rescue but the loss was so deep that the profit making company couldn't get over it by even giving it away their best??
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13 sats \ 0 replies \ @TomK OP 18 Jul
yes, you could say that. there is also the problem of the euro-dollar market: a number of financiers of European government debt, some of whom were denominated in dollars, came from the USA and would never have agreed to a haircut, for example Freaky may and funny Mac or whatever those things were called
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