While France faces another night of rioting, the partners in Berlin’s planned grand coalition seem set on adding to Germany’s economic woes with an agreement to increase consumption taxes, a curious approach to take to an economy plagued by anemic demand. The reason for this? Germany is trying to comply with the budget deficit rules that (allegedly) underpin the Euro.
It’s yet another reminder why this miserable, ill-conceived and economically illiterate one-size-fits-all currency does not, in fact, suit anybody.