The proposed package foresees spending about 6 percent less in 2024 from this year, in a return to financial austerity. But the severity of the cuts to social services drew sharp criticism.
It’s just silly. In business class you learn that you need to account for inflation when assessing the value of money. Even without economic growth 8% inflation mean that our country’s debt shrinks by 8% if we don’t pay back a single euro. That’s about 200 billion euros of debt vaporized last year alone.
Not accounting for inflation with the debt brake (Schuldrenbremse) was an incredibly dumb decision.
It’s just silly. In business class you learn that you need to account for inflation when assessing the value of money. Even without economic growth 8% inflation mean that our country’s debt shrinks by 8% if we don’t pay back a single euro. That’s about 200 billion euros of debt vaporized last year alone.
Not accounting for inflation with the debt brake (Schuldrenbremse) was an incredibly dumb decision.