EU fiscal problems

Originally posted by alonso ↑

Looks like the EU's Stability & Growth Pact is more honoured in the avoidance than the observance.

"Europe’s Next Financial Crisis

We would like to alert our readers to a theme that has been preoccupying us for a while – the possibility of another financial crisis in Europe. We have generally been restrained in our warning of financial crises. The main exception was the global financial crisis and its cousin, the euro area’s sovereign debt crisis. Fifteen or so years later, we see another financial crisis ahead here in Europe: a crisis of the European social and political model with deep consequences for fiscal and financial stability.The canary in the coalmine is the overshooting budget deficits in France and Italy, at over 7% and over 5% for 2024 respectively. These numbers are a symptom, not a cause. Behind them lies a lack of economic growth needed to sustain Europe’s social model. Germany’s fiscal policy could not be more different than that of France or Italy, and yet Germany is afflicted by the exact same problem."

"European companies no longer generate sufficient profits to fuel the social model – and to fund long-term research. It is no surprise that Europe has only very few tech companies. In short, Europe’s oligopolistic old-tech model no longer works in a digital world. We have been reporting on the attempts by the EU to stem against technological developments through regulation. But this is a way of addressing symptoms, not causes."

"European companies no longer generate sufficient profits to fuel the social model – and to fund long-term research. It is no surprise that Europe has only very few tech companies. In short, Europe’s oligopolistic old-tech model no longer works in a digital world. We have been reporting on the attempts by the EU to stem against technological developments through regulation. But this is a way of addressing symptoms, not causes."

But wait, there's more

"In a single word, the EU is dysfunctional. That’s the problem, not technology. The Maastricht treaty itself is a big part of the reason the EU is dysfunctional. The Euro itself, with one common interest rate, is fundamentally flawed."

But wait there's more

"A fiscal crisis awaits. The first casualty will be Green energy policies."

https://mishtalk.com/economics/expect-a-financial-crisis-in-europe-with-france-at-the-epicenter/

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It's a bit ironical that Germany viewed itself as the de facto leader of the EU and now due to EU policies has basically gone broke

The EU has shot itself in the foot and if all that would like to leave the Brussels led woke dictatorship do so, then it will be no more

So all it will take is another round of elections where the left policies are further eroded in most countries of the EU and they will have to look for a new model

They could have split into two levels of EU prior to the big migrant intake and probably would have survived, but people in power lose all sense of what they are supposed to be doing and their dreams of power removes all reality from their tiny brains