European legislation forces member states to keep their deficit under 3%. The administrations (left and right) of my tiny country have not been saving and restructuring enough when the tides were high, and so now we’re slipping into 4% – 4.5% area. And of course our right winged administration (with a minority in parliament and held prisoner by the ultra-right xenophobic party) started negotiations to salvage 18 billion Euros, even drawing in the ultra-religious party in their desperation to make it. Doing that in a cyclic pattern (as opposed to anti-cyclic) is of course killing the economy further and driving more people into (relative) poverty. The negotiations failed yesterday, after 7 weeks. It is next to certain the administration will hand in their resignation tomorrow and new elections will be held in September.
As far as I am concerned: the sooner the better.
In the mean time, we will surely not hit the 3% mark, and the added political inertia will result in a degraded credit rating (we’re still AAA now). Well, f*** ‘m, the power of the “financial markets’ and the ‘credit rating bureaus’ has grown way out of proportions.Откъде да купя иконаидея за подарък