Monday, May 14, 2012
Austerity Leaders Rebuked in Europe
Coming just days after the French rebuked then-president Sarkozy for supporting strong austerity measures across the board at home and continent wide, Germany's largest state delivered Merkel's Christian Democrats a crushing blow while delivering the Social Democrats and Green coalition a strong victory.
This has political observers worried that Chancellor Merkel's insistence on continent-wide austerity could very well result in her governing coalition losing power in next year's parliamentary elections, due to Europeans tiring of stringent cuts on social spending and limiting entitlements, preferring the governments to "grow their way out of the crisis."
All of this is bad news for Europe's economic crisis, because the leaders pushing for government to become leaner and more responsible are slowly being replaced, while the situation has hardly been resolved and in Greece is still threatening the weak stability of the entire continent's economy.
However, on an ironic note, this turn away from austerity and the possibility of more nations busting could lead investors to return to the United States, that even though we're still embroiled in the great recession, our treasury notes and economy in general is still light years healthier then our European counterparts.
Regardless, the fall of austerity's leaders in Europe is a troubling trend.
What say you?