Dear reader,
as provocative this sounds it is important to see that the situation is dramatic within the eurozone and in order to not spiral rapidly downwards from austerity measures to decline in economic activity to less tax income for the states involved to more austerity etc etc some are calling to open the „flood gates“ in order to transform thee ECB to a lender of last resort for all member states needing help with unlimited resources but with the risk of inflation. Inflation is indeed compared to the other alternatives we face right now to be almost neglected.
But this transforming process of the ECB to some kind of FED is prohibited by current constraints in European laws such as the Maastricht treaty and the Lisbon treaty. It is also most problematic in regard of the incentives it gives to states not to perform the necessary steps to bring their out of control budgets at least to a reasonable, sustainable level. Most if not all economist agree that is sheer impossible to achieve better debt to GDP ratios without growth of their economies and therefore reduction in spending for benefits and higher tax income from good performing companies.
As we could experience much to our displeasure that politicians if they move at all in the right direction they need tremendous amount of time for almost as if they were to compete with snails who can crawl slower. That is IF they want to change the way of things are being handled in their countries for decades now which mostly comes down to blow up public „services“ (=bureaucrats) and not only putting tremendous expenses on the current workforce of state employees (as if that alone weren't bad enough) but also to put tremendous obligations for future budgets to pay a large chunk of the federal budget to future pensions (A fact that according to human nature nobody wants to see right now) Italy had a gigantic problem in the past and only partially did something about it (see reference section below) and also states currently not under everyones microscope such as Germany have a hidden „time bomb“ under their rug which is pensions which build up for the next 20 years somewhere in the region of 1.2 Tn (yes trillion) € (* put in reference section*)
