The whole mechanism of austerity, enforced in Europe in the last two years, shows now its many cracks. Last Friday (March, 1st) the Bundesrat in Germany blocks the application of the Fiscal Compact due to its economic weight, demanding 3.5 Euro billions in compensation from the federal state. The Bundesrat, that’s under control of SPD-Grunen, opposes PM Merkel and finance minister Schauble decision to put national economy under constriction to reach budget targets for 2013.
This year will be held general elections in Germany and the fiscal issues are one of the major battlefields for the campaign to come. CDU-CSU, Merkel’s party, loses most part of the local elections in 2012 and the leaders of the party are expecting the worst in the months to come. Economics will be the leading argument almost everywhere this year and new formations like “Alternative for Germany” are already speaking aloud about to set a stop to any form of debt financing from Germany and to reset the borders of Eurozone.
In the meantime there are very important demonstrations thru Europe. That’s from Slovenia, a country that’s on the brink of a major political crisis.
This one is from Bulgaria, where demonstrations topped national government a few days ago.
Finally we got Greece, a country that’s on the edge of a full-out revolution any time soon.
Got the pictures? Add to the list Serbia, Spain and Italy. Keep an eye on Hungary, another country that’s ready to blow under its right-wing government. Think about Romania and Moldova too, their financial problems are getting worse day by day.
Austerity is not an answer, not even a little one, in the face of a crisis like this one. Time to set back the clock and rethink the whole situation, before it’s too late.