In a huge setback to what Timothy Geithner wanted, Germany will not be spening new money in stimulus to save the global economy. On the contrary, Germany announced today a fiscal austerity package that cuts 80 billion euros in spending by 2014. The savings will be achieved through cuts in public spending (including removal of 15,000 government jobs) and taxation of some specific segments of the economy.
According to the German site Spiegel International, this is the largest program of fiscal austerity since World War II. "Germany, Europe's biggest economy, has an obligation to set a good example," Angela Merkel said.
According to the Financial Times, the country will make structural savings (already adjusted for cyclical effects) of 11.1 billion euros in 2011, 16.1 billion in 2012, 25.7 billion in 2013 and 32.4 billion in 2014. Merkel rejected proposals to increase income tax and chose to focus on spending cuts.
The government will also create an "eco-tax" (on air travel), with which it aims to raise 1 billion euros per year, and on financial transactions, which should add 2 billion per year.
Tuesday, June 8, 2010
Germany Says No To Geithner: German Announces Package To Cut 80B Euros In Spending
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2010
(1051)
-
▼
June
(99)
- Profitting From Financials Oil, and Gold Rising or...
- Atlanta Fed: U.S. Economic Recovery Not Sustainabl...
- Spain and Greece To Default; How Much Longer for E...
- Current Negative Engulfing Lines on Nasdaq and S&P...
- Countries Debts Are Ponzi Schemes
- The Third Depression And Who Will Pay The Price
- BIS Warns: End Stimulus Measures Or Big Risks and ...
- Argentina Warns Europe: Do Not Cut Spending And Be...
- Several States Are In Financial Distress Similar t...
- Beware This Week For The Markets, Expected U.S. Un...
- iPhone4 Problems: Users Need an "iGlove" to Get Re...
- Cramer: BP Not Too Large To Fail, Bankruptcy Is An...
- U.S. GDP Revised Down and Bernanke Talks More QE: ...
- Financial Regulation Bill: The Financial Cancer an...
- GLD, Buy or Sell? Weakness Showing Up
- Oil, Buy or Sell? USO
- Natural Gas Storage At Still At Top of Channel, Bu...
- BP Tumbles to Fresh 14-Year Lows
- Bernanke Fights Deflation Again: World Is Walking ...
- The Fed's New Balance Sheet: How It Has Grown and ...
- The New RIM Takes On Apple; Apple Versus RIM, Part II
- Earthquake Hits Eastern Canada, Collapses Roads an...
- Beware Municipal Bonds: About To Implode
- More Bad News For BP: Forced To Remove Cap That Co...
- What Recovery? U.S. Homes Sales Plunge To Lowest O...
- Euro Analysis Shows Lower Highs and Lower Lows; Ta...
- BP: Oil Leak Could Be As High As 100,000 Barrels p...
- China Announces Yuan To Float: Not Much Change, Bu...
- Roubini: China's Decision to Unpeg Yuan May Backfi...
- Gold Reaches New Record: Breakout; 4 Ways to Trade it
- Will European Bank Stress Tests Be The Same Mocker...
- BP CEO Says "I Don't Know" 66 Times. Company May L...
- How To Buy Solid Stocks at 10 to 20% Discount
- BP Upgraded?! Straddle It!
- UNG Comes Down Crashing - Yet Again
- Government Officer In Charge of Safety and Inspect...
- Forget the Rhetoric: Europe Loves a Weak Euro
- More on BP's Lies: A Renewable Resource
- Lies, Lies and More Lies, New BP Oil Leak Estimate...
- QQQQ, XLF and UCO Straddles For June and July
- Natural Gas: Profitting From UNG Going Up Or Down
- Latest Roubini Interview: Eurozone Problems are Se...
- Cost of Saving Freddie and Fannie Could Reach $1T
- BP Bankruptcy Prospects Being Raised; Credit Ratin...
- Goldman Sachs May Waive Its Own Code of Business C...
- BP Now Says Will Capture Between 40,000 and 80,000...
- Under Attack, Spain Acknowledges Credit Squeeze
- Greece Downgraded to Junk: Markets Reverse Course
- The Euro is Still Overvalued: Target is Parity
- Gold Price Analysis: Up (Target $1300) - or Down
- M3 Money Supply Is Plunging
- European Banks Face Large Funding Squeeze Due To W...
- Soros: The Superbubble, We Have Entered Part II of...
- Japan Warns That Its Debt May Make it Next Greece
- New Estimate: BP's Oil leak Was Between 20,000 and...
- 2.50 and 5.00 Puts Added to BP Options
- BP's Bonds and CDS Trading Like Junk; Class Action...
- BP's Large July Put Activity Indicates Imminent Crash
- UNG Back to Its Old Self: Dropping and Dropping
- BP''s Quick Death: Straddles ROI at +266%
- Estonia to Join the Euro
- IMF Warns That Risks to Global Economy Have Risen ...
- BP's Recovered Oil Money At Work: Buys Top Google ...
- Stock Options Shows Extreme Bearishness, Usually A...
- Brazil's GDP Grows 9% in Q1 2010, 2nd Only to China
- BP Stands for BankruPcty or Break uP
- Morgan Stanley: Euro to Drop to 1.12
- Das is Worried: 'Crunch Porn' on Financial Publica...
- The 2nd Oil Leak in The Gulf Sinks DO
- BP Sinks Further, Straddles Skyrocket +157%
- Signs of New Financial Instabilities: Ted Spread C...
- 2010 FIFA World Cup: The Economics
- Stocks: Massive Effects of Spending Cut Packages i...
- Germany Says No To Geithner: German Announces Pack...
- Fitch Ratings Warning: U.K. on The Brink, Faces En...
- Ford Motor Co. To Open a Bank
- Oil, Natural Gas, and Gold: Up or Down?
- Economists: Euro Will be Broken Up Within 5 Years;...
- Profiting From Markets Crashing or Rising With The...
- Oil Volatility: The Current Best Oil ETFs To Buy a...
- Roubini: Dilemma of Extreme Policies: Maintain Sti...
- Euro Breaks 4-Year Support: FXE Straddles +200%
- UNG Straddles: +31% in One Day
- G20: Germany To Start Withdrawing Stimulus
- Europe Debt Troubles Deepen: Grave Situation in Hu...
- Brazil To Assume 2nd Highest Global GDP Growth Rate
- Fed Dissenter Calls for Higher Interest Rates in T...
- UNG Straddles: Profit Up or Down
- Natural Gas Overflowing Again, A New Shorting Oppo...
- Beware The Employment Stats: Payroll Numbers To Be...
- Diversifying Through Currency ETFs
- New Correlations of All Commodity ETFs
- Stock Diversification: Correlations Among Country ...
- BP Sinks, Straddles +101.3%
- BNN: Eurozone May Collapse; Profit From the Euro B...
- BP Straddles +65%
- Canada Raises Interest Rates, Canadian Dollar Tumbles
- New Stock Correlations: Proper Diversification of ...
- Canada's GDP Grows at Record 6.1%
-
▼
June
(99)
No comments:
Post a Comment