this post was submitted on 21 Mar 2025
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It was one of the most dramatic and radical policy reversals in European Union history. In less than 48 hours, Germany not only executed a seismic shift in its domestic budget policy but also suddenly pushed to rewrite the EU’s fiscal rules it itself helped to draft.

Brussels welcomed the first move as a long-overdue response to years of urging Germany to invest more, rather than let itself be constrained by a constitutional limit on borrowing.

But the second? That was seen as a unilateral move — an overcorrection that unsettled even Germany’s closest allies.

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[–] DicksAndPizza@lemm.ee 17 points 1 day ago (8 children)

We either loosen our rules now and invest in security or we are doomed in the future. I understand why some might be sceptical. But at the same time Germany is the top contributor to EU and other countries should be happy that they are taking the lead on making Europe safe. It‘s not like other countries cared a lot about debt in the past, quite the opposite, many are just in the EU for the money. So…

[–] davesmith@feddit.uk 1 points 1 day ago* (last edited 1 day ago) (7 children)

The Euro: Peripheral countries get to borrow at the rate Germany can (at least until it fucks up for them). Germany gets a hugely devalued currency, allowing it to export.

Individual countries don't have an exchange rate, the ability to devalue their currency, and until now, where Germany now decides to build itself a huge army, the ability to run deficits to manage downturns.

I understand the appeal European integration on a social level has to European people, but the Euro has accentuated differences between countries in it, ultimately contributing to the rise of the far right. The exact opposite of the social integration European people hoped for.

[–] manxu@piefed.social 4 points 1 day ago (1 children)

The amount of trade between EU countries forces them to have an equalized exchange rate. That has been true since long before the Euro was even implemented, and the constant pressure on a particular currency that had a hard time keeping the fixed exchange rate frequently brought turmoil. If you don't believe me, just look up Black Wednesday 1992.

The Euro is just the financial manifestation of that forced equalization. A manifestation that gives consumers greater price transparency in cross border dealings. If it really had had a major role in the rise of the far right, countries that use the Euro would have seen a greater rise than those that do not, and that really doesn't seem to be the case.

[–] davesmith@feddit.uk -3 points 1 day ago

I very clearly said "ultimately contributing to the rise of the far right" not "had had a major role in..."

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