Debt is not the solution for everything

The world is going through the deepest crisis in post-war history. But the dormer idea that all problems can be solved with money or with debts has apparently taken root. In many cases, there seems to be hardly any inhibitions and no more thinking. All problems should be solved with debt-financed spending. This conviction is also reflected in Merkel and Macron’s new plan. The two heads of government want to give the EU Commission the opportunity to borrow 500 billion euros on the financial market. The bonds will be guaranteed by the EU member states and are to be repaid from EU budget funds. This is a further step towards a common financial policy. Against the background of the ruling of the Federal Constitutional Court, this is certainly a logical step. But in Germany in particular, such political decisions should be well explained and people should be taken on board. Otherwise the wrong political forces could capitalise on growing dissatisfaction.

As correct as this initiative may be in the EU context, it clearly shows that many current problems are being consistently postponed into the future. In a sense, this is a way of lulling oneself into a sense of security, and the financial markets are still proving the decision-makers right every day. This is the only way to understand how, in the current situation in the UK, one can get involved in unregulated brexite and expose the population and the economy to such a risk. The only way to explain this is to be complacent.

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