Were I a government official in France, that is the one fact I would remind myself of each and every morning – if only to keep myself from such stupidity:
Christine Lagarde said Berlin should consider boosting domestic demand to help deficit countries regain competitiveness and sort out their public finances.Her comments break a long-standing taboo between the French and German governments about macroeconomic imbalances inside the 16-country bloc which have been dramatically exposed by the Greek debt crisis.
“[Could] those with surpluses do a little something? It takes two to tango,” she said in an interview with the Financial Times. “It cannot just be about enforcing deficit principles.”
“Clearly Germany has done an awfully good job in the last 10 years or so, improving competitiveness, putting very high pressure on its labour costs. When you look at unit labour costs to Germany, they have done a tremendous job in that respect. I’m not sure it is a sustainable model for the long term and for the whole of the group. Clearly we need better convergence.”
You hear that, Germany? You are doing too well, and need to tone it down so that you are more like France (and Greece).
While not ruling out an EMF, she said it was not a priority for the eurozone. The bloc should first focus on ensuring that debt-laden Greece followed through on promised austerity measures and then show “a bit of creativity and innovation” to find scope within the existing EU treaty for beefing up budgetary surveillance and discipline.
You’re kidding me, right? The idea that Germany has any sort of responsibility regarding Greece flies in the face of even the most basic of common sense – Greece is where it is because of California-like systems that have bloated the unproductive at the expense of the productive.
Even with around 9% unemployment, Germany thrives because – if for no other reason – when they make something they usually get it right.
Germany has, on average, 5 weeks vacation for employees, and better pay than probably the rest of the EU. That France would even open it’s cock-holster and talk about how Germany needs to make thing more equal simply re-enforces my belief that French women run that country, and miss the sensation of being fucked by a winner.