The Italian Runaway Train
seekingalpha.com/article/...15-the-italian-runaway-train?ifp=0
Die Frage ist,ob Draghi QE machen wird ,was unwahrscheinlich ist.Schliesslich wollen die Deutschen kaum Italien retten nachdem sie zum ersten Mal seit 20 Jahren ihre Schulden reduziert haben
But Italy's debt is simply too big to be manageable in this way.
Italy's debt now looks certain to climb towards 140% of GDP and beyond
...During the spring the FT published details of a document jointly issued by the German and Finnish finance ministries which strongly rebuked Brussels for easing austerity demands, citing in particular the additional flexibility given to France and Spain for reducing their budgets to within EU deficit limits.
www.ft.com/intl/cms/s/0/...html?siteedition=intl#axzz3Aqr8XJu3
FT:
The German and Finnish finance ministries have issued a stinging rebuke of Brussels’ attempt to ease austerity demands on struggling eurozone countries, saying such flexibility improperly provided France and Spain with additional time to cut their budgets to meet EU deficit limits.
The rebuke, in an eight-page memo obtained by the Financial Times, accuses the European Commission of using “a somewhat arbitrary approach” in granting the budget flexibility to Madrid and Paris, and suggests “a separate pair of eyes” is needed to ensure Brussels is properly applying the new budget rules.
“Since 2012, the commission has substantially changed the way it assesses whether a member state has taken ‘effective action’ to comply with [EU budget rules],” the memo states. “The recent methodological changes imply the risk of watering down the newly strengthened [rules] at its implementation stage.”....
Citing the “severe recession” that set Italy back in 2012 and 2013, Mr Padoan wrote that Italy wanted to “deviate temporarily from the budget targets” and that because of “exceptional circumstances” (my emphasis throughout) the government had decided to accelerate the payment of arrears owed by the public to the private sector by €13bn, which would increase the debt to GDP ratio in 2014. The trouble is that these "temporary factors" and "exceptional conditions" seem to arise with a predictable regularity in Italy's case. The country is currently aiming for a balanced structural budget in 2016 rather than 2015 as agreed with Mario Monti’s technocrat government in 2012. A year earlier, then prime minister Silvio Berlusconi had promised a balanced structural budget by 2013........
seekingalpha.com/article/...15-the-italian-runaway-train?ifp=0
Die Frage ist,ob Draghi QE machen wird ,was unwahrscheinlich ist.Schliesslich wollen die Deutschen kaum Italien retten nachdem sie zum ersten Mal seit 20 Jahren ihre Schulden reduziert haben
But Italy's debt is simply too big to be manageable in this way.
Italy's debt now looks certain to climb towards 140% of GDP and beyond
...During the spring the FT published details of a document jointly issued by the German and Finnish finance ministries which strongly rebuked Brussels for easing austerity demands, citing in particular the additional flexibility given to France and Spain for reducing their budgets to within EU deficit limits.
www.ft.com/intl/cms/s/0/...html?siteedition=intl#axzz3Aqr8XJu3
FT:
The German and Finnish finance ministries have issued a stinging rebuke of Brussels’ attempt to ease austerity demands on struggling eurozone countries, saying such flexibility improperly provided France and Spain with additional time to cut their budgets to meet EU deficit limits.
The rebuke, in an eight-page memo obtained by the Financial Times, accuses the European Commission of using “a somewhat arbitrary approach” in granting the budget flexibility to Madrid and Paris, and suggests “a separate pair of eyes” is needed to ensure Brussels is properly applying the new budget rules.
“Since 2012, the commission has substantially changed the way it assesses whether a member state has taken ‘effective action’ to comply with [EU budget rules],” the memo states. “The recent methodological changes imply the risk of watering down the newly strengthened [rules] at its implementation stage.”....
Citing the “severe recession” that set Italy back in 2012 and 2013, Mr Padoan wrote that Italy wanted to “deviate temporarily from the budget targets” and that because of “exceptional circumstances” (my emphasis throughout) the government had decided to accelerate the payment of arrears owed by the public to the private sector by €13bn, which would increase the debt to GDP ratio in 2014. The trouble is that these "temporary factors" and "exceptional conditions" seem to arise with a predictable regularity in Italy's case. The country is currently aiming for a balanced structural budget in 2016 rather than 2015 as agreed with Mario Monti’s technocrat government in 2012. A year earlier, then prime minister Silvio Berlusconi had promised a balanced structural budget by 2013........