Thursday, July 9, 2015

Decidedly Negative Article On German Chancellor - But She Has A Point

This Bloomberg post is pretty negative on Angela Merkel, Germany's chancellor and leader of the country which just happens to be the biggest and most influenctial state in the European Union.  So while the post complained about how inflexible Merkel is regarding austerity and throwing her economic and political weight around, you have to remember that she's a politician.  When a politician has power and might, he or she will use it.

However, whole a measure of flexibility is needed, the post stated that Merkel treats her neighbors like their spoiled children and needed her iron hand to right their houses.  And sure, the EU is suffering through stagnation due in part to auterity measures but it isn't as if lesser partners' economies are booming.  Take Greece which has imploded and is on the verge of getting booted out of the EU. 

And given Europe's very liberal and generous governments, politicians that want to stay in power has for decades avoided saying "no" to its people. 

Merkel just happened to be in a position as a leader of a strong country to be able to do what she thinks is best for EU and Germany.  Perhaps after this crisis is over, there could be a rebalancing and relaxing of auterity measures but until countries that keep borrowing understand that there are limits to testing the patience of creditors, Merkel does have a point.

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