The Federal Finance Minister has presented his own proposals for a reform of the EU debt rules.
(Photo: dpa)
Berlin, Brussels, Paris The federal government has received praise for its proposals for reforming the EU debt rules, but also sharp criticism. Federal Finance Minister Christian Lindner (FDP) sent a three-page paper to Brussels last week, countering the plans of the EU Commission with his own proposal. In the so-called “non-paper”, Berlin gives highly indebted countries more time to reduce their liabilities, but at the same time wants to make the reduction path more binding.
The former chief economist at the International Monetary Fund (IMF), Olivier Blanchard, warned of “catastrophic” consequences should the German proposal actually go ahead. In his view, the necessary austerity measures would drive some countries into an economic downturn.
Other economists rate the federal government’s proposals more positively. Sander Tordoir from the Center for European Reform sees “a constructive offer” that, in his opinion, seems stricter than it actually is.
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