The budget deficit of the EU countries have skyrocketed due to the financial crisis in the air. While Germany has a comparatively modest budget deficit, the budget deficit is 12.7 percent of the Greeks confirmed BIPMaastricht-criticism by economists. How can the euro’s stability be maintained?

During the signing of the Maastricht Treaty (1992), 62 German economics professors signed a manifesto against the European Monetary Union. Six years later, joined more than 160 economics professors a call “The euro is coming too soon“. Both calls were picked up by the media and resulted in the wake of a heated public discussion. It comes to the pros and cons of the European Monetary Union.After initial weakness, the euro had shown some stability.

The average inflation rate in the euro area was moving normally close to the target rate of 2 percent. In addition, the yields on long-term government bonds to be approached by the risk premiums in the earlier weak-currency countries almost evaporated. It was a rapid gain in reputation of the European Central Bank.

These positive signals were registered very happy without considering, however, that parallel constructions also serious imbalances and instability in the euro zone. Therefore, has thereby changed the image. In addition, realize fatally in many ways exactly. Those risks faced by the Euro-sceptics have warned in their manifestos.

It was said in 1992, among other things, the economically weaker European partners are exposed to a common currency in increased competitive pressures, making them out because of their lower productivity and competitiveness, increasing unemployment. In this way, will be necessary high transfer payments in terms of a financial compensation.

In 1998 was warned that the Stability Pact could not ensure lasting fiscal discipline. Since sanctions do not automatically occur, there is scarcely a qualified majority for the application of the Covenant, if a larger number of countries simultaneously violated the deficit ceiling.

The Stability and Growth Pact was a farce fast. Instead, the years to high debt, such as Germany or France to occupy, with sanctions, the Stability and Growth Pact “adjusted” by now officially more than opportunities and longer adjustment periods are admitted to exceeding the deficit criteria.

“Number of poverty is growing rapidly” was announced. In Germany, there will be a loud DIW study 11 million poor people. Inevitably, appear in the mind’s eye images of mass squalor and misery and this in the middle of our (affluent) society. How can this be, asks the citizen. After all, we live in one of the richest countries in the world. A look at the study puts the lurid testimony.

A subtitle brings the truth to the point: “Continued high risk of poverty in Germany.” From the “risk” let the media at the end only the “poverty” are. It is a small but significant difference. Because poverty is endangered in Germany, according to the OECD definition of who is less than 60 percent of median income at their disposal. Expressed in figures, this corresponds to an amount of 925 euros for a single.

For a couple with two children, there are 1943 Euro. That is not much, but a life far removed from squalor and misery is so possible. The risk of poverty and the associated fear of losing the middle class are important issues. Sensational and misleading headlines distract from the challenges for our society.

The pension guarantee

First time this year has the pension guarantee. Although wages and salaries of employees have decreased due to the crisis. Just last year, the retirees were in the midst of the worst economic crisis in 80 years, the largest pension increase – manipulation of the pension formula is thanks – recorded in 10 years. The suspended pension cuts must be made up.

The contribution rate for employees will be several years later by 0.2 percent as the payer without warranty and with around 10 billion charge until 2015. A destabilization of the whole pension system until now solely stems from the fact that the extension of short-time work has prevented massive losses on the revenue side.

Yet, the manipulation of the pension formula is not withdrawn, the viability of the whole system at risk.

The debt crisis in Europe is to test for the single currency. A legal opinion of the Bundestag has now determined that the Article 122 of the TFEU provides a legal basis for Germany’s commitment to help Greece, because it concluded that the Greek budget crisis is an emergency.

Literally from the corresponding passage says that a state can be helped “is the result of natural disasters or exceptional occurrences beyond its control, by difficulties or is seriously threatened with severe difficulties” (Art 122 (2) TFEU). The politician Dr. Schick spoke of speculative attacks, which Greece was exposed as a typical case of such an emergency.

However, it is the less imaginative observer but hard to see the long-term falsification of statistics, with the active assistance of the competent Council of the banks is as a natural disaster. The reaction of the financial markets is probably endogenous, if one assumes that the forgeries to the investors in the allocation of the purchase of the bonds or loans were not known. For the Greeks still remains the possibility of exercising control by saving now, as and to work longer, possibly for less pay than before.

This situation is now considered a blow for Greece and the EU as an opportunity to redistribute the tax dollars of the Member States in favour of Greece. It also showed a very peculiar understanding of the law in Europe that threatens to alienate the citizens of the European integration. Why should taxpayers have to be ready to meet their obligations? Why should workers in this country to be ready to work until 67, when the Greeks to extend the working life be spared by our payments?

Why should transfer recipients to be willing to take losses into account? Somebody will have to pay! It is just a matter of spending money faster than the other Europeans are! There is an old proverb that says that who live in glass houses should not throw stones. Nevertheless, the Greeks are probably still has the upper hand, and German banks in particular are likely to fall again in imbalances.