Germany

Germany Says Yes To Growth, Yes To Rigor

Op-ed: Germany has been accused of being anti-growth. But Germany's Finance Minister Wolfgang Schäuble argues that growth goes hand-in-hand with the budgetary discipline that Europe's biggest economy holds so dear.

The Brandenburg Gate in Berlin (Wolfgang Staudt)
The Brandenburg Gate in Berlin (Wolfgang Staudt)
Wolfgang Schäuble*


BERLIN - There are few subjects as hotly debated today as the issue of growth, and rightly so. Employment, the key to prosperity and security for all Europeans, cannot exist without it.

As Angela Merkel and François Hollande have both reminded us separately, growth is currently insufficient across many regions of the continent. The idea of a growth initiative is therefore not only legitimate, it also responds to Germany's interests, which cannot be separated from those of the rest of the continent.

Before going into the details of what such a project would involve, we should first address a misunderstanding. By growth, I most certainly do not mean the artificial stimulation of demand by government spending. These "stimuli," financed by debt, were used in the past: I'm thinking of the time immediately following the bankruptcy of Lehman Brothers. They can be useful in the context of an acute shock, when the state coffers are well-stocked, but not when the impediments to growth are structural. Nor do they work as a long-term strategy.

Whose interests are served today by a quick fix that leads to increased deficits, which the European budget rules don't allow anyway? Nobody, in my opinion. Certainly not the investors who finance the debt of the European states, and are worried above all about their ability to pay it back. No, the growth in question should be, to borrow a phrase from the G20, durable and balanced. It should be growth that is not only strong but also on solid footing. Growth along those lines would not remotely contradict budget stabilization, which has been put off too long, but which European states have been pursuing with tenacity.

On the contrary, the two things reinforce each other. An intelligently stabilized budget creates the confidence without which consumption and investment are inconceivable. Growth, at the same, contributes to budget stabilization by reducing expenditures and stimulating revenue.

In fact, growth is already at the center of the efforts that the euro zone countries have taken to combat the debt crisis over the course of the past two years.

Domestic demand

The countries that are currently receiving assistance from the European Stability Fund are in the process of implementing adjustment programs that are meant to improve competitiveness so that their economies can grow in the long term.

My country has fully contributed to the European efforts for growth. As the International Monetary Fund explains in its most recent report on Germany, published last week, the German economy is increasingly supported by domestic demand.

The numbers prove it: Our first trimester imports from the rest of the European Union were up 5% compared with last year. Our exports increased at just half that rate.

One of the lessons of the crisis is that members of the Monetary Union must work unceasingly to integrate their national economies. But they must also work to maintain and improve their competitiveness vis-à-vis the rest of the world.

Spain, which had long been buoyed by a real estate boom, saw its revenue crash after the housing bubble burst. But in a recent meeting in Santiago de Compostela, I was able to see how much my Spanish colleagues have learned.

The courageous reforms made by both the current Spanish government, led by Mariano Rajoy, and its predecessor, have already brought improvements: exports have picked up and the country has once again become more competitive.

In Italy, Mario Monti's government has opened up several markets that had been closed off and has taken steps to increase the effectiveness of public services. The Monti government is now working on an ambitious project to reform the labor market.

But the joint effort is not the sum of the national measures. Through various engagements, including the budget pact and the "Euro Plus' pact, the majority of the European Union members have committed not only to coordinate their economic policies but also to improve their competitiveness, encourage job growth and reinforce the banking industry.

Together, the members of the European family can do more. The themes at the European Council in March were sustainable growth, job creation and competitiveness. Those same themes are all still relevant for the two upcoming meetings of our heads of State, set to take place later this month, and at the European Summit in June.

One of the central questions will be whether we are currently doing enough for growth, and whether or not we could do more. It goes without saying that Germany will participate openly and constructively in the conversation.

We are ready, for example, to talk about the ability of the European Investment Bank to promote growth. Financing small and medium-sized business should also be discussed at the national and European level. Also we ought to address the issues of bureaucracy and the role of the State in the economy, which can be a growth inhibitor as well.

Additionally, we have to work on the structural funds. Can we target them more effectively? Many decisions have been made in an attempt to maximize the funds, but there is still work to be done. For example, why not use the funds to support professional development? The same questions apply to the E.U. budget in general. In other words, can we imagine a major change in the way Europe works for its members' economies?

This debate about growth is essential. And contrary to what some would argue, it does not contradict efforts to square up public finances in Europe and in the Euro Zone. Initiatives for growth and for the budgetary pact are complementary. They are pillars of a more robust, stable and durable monetary union.

*Schäuble is Germany's Finance Minister

Read the original article in French.

Photo - Wolfgang Staudt

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January 22-23

  • Navalny saga & Putin’s intentions
  • COVID’s toll on teenage girls
  • A 50-year-old book fee finally gets paid
  • … and much more!

🎲 BUT FIRST, A NEWS QUIZ!

What do you remember from the news this week?

1. Which two words did U.S. President Joe Biden use about possible scenarios in the Russia-Ukraine standoff that upset authorities in Kyiv?

2. What started to mysteriously appear on signs, statues and monuments across Adelaide, Australia?

3. What cult movie did U.S. rocker Meat Loaf, who died Friday at age 74, star in?

4. What news story have we summed up here in emoji form? 🇬🇧 👱 💬 💼 ❌ 🥳 🦠

[Answers at the bottom of this newsletter]

⬇️  STARTER

Toxic geopolitics: More than ever, we need more women world leaders

The world is watching the Russian-Ukrainian border. Russian President Vladimir Putin threatening an invasion finds an ally in Iran’s Ebrahim Raisi, united against their common enemy: the United States. Back in Washington, U.S. President Joe Biden — marking his first year in power with painfully low approval rates (higher only than Donald Trump’s) — sends his Secretary of State, Antony Blinken, to Kyiv to reassure President Volodymyr Zelensky who worries that France’s Emmanuel Macron might undermine Ukraine. And we haven’t even mentioned Xi Jinping!

It’s an endless theater of world leaders beating their respective chests — and they have exactly one thing in common: they’re all men. It’s by now a decades-old question, but worth asking again: What would happen if women, and not men, were running the world? Would there be less conflict, more prosperity? More humanity?

In 2018, the World Economic Forum released a study that showed that “only 4% of signatories to peace agreements between 1992 and 2011 were women, and only 9% of the negotiators.” The report shows that in several conflict zones in the world in recent decades, citing Liberia, Northern Ireland and Colombia, women have been instrumental in achieving peace.

In Colombia, where 20% of peace negotiators for the 2016 peace treaty were women, Ingrid Betancourt, herself a victim of the 50-year conflict, has announced her candidacy for the May presidential elections. Differently from previous bids, where she focused on fighting environmental abuses and corruption, Betancourt now is putting gender issues at the center of her political agenda. Bogota daily El Espectador questions whether the former hostage will be able to ride this important political wave, with feminist movements flexing their muscle around the region demanding more rights.

In Italy, next week’s elections for the head of state are monopolized by infamously misogynous former Prime Minister Silvio Berlusconi, who is hoping to be elected for the seven-year, honorary function. There is no official candidacy, but Berlusconi’s name and that of current Prime Minister Mario Draghi are the two getting the most attention. Italian feminist writer and intellectual Dacia Maraini writes in La Stampa that, yes, the very fact of electing a female president will be progress for the country — and by the way, there are plenty of women qualifed for the job.

There was also a woman politician making the news this week for actually getting elected: Maltese conservative politician Roberta Metsola, became the new European Parliament President after the death of Italy’s David Sassoli. And yet the election of the first female president of the EU’s legislature since Nicole Fontaine in 2001 has been widely criticized by female politicians — primarily for Metsola’s stance against abortion rights. "I think it is a terrible sign for women's rights everywhere in Europe," French left-wing member of the European Parliament Manon Aubry told Deutsche Welle.

The women who have risen to power in history (Margaret Thatcher, anyone?) don’t necessarily make the case that gender is the silver bullet to fix politics. Still, after watching all the toxic masculinity on the world stage this past week, we can rightfully demand fewer men.

Irene Caselli

🎭  5 CULTURE THINGS TO KNOW

• Record-breaking online concert of Mahler’s “Symphony of a Thousand”: More than 100 musicians from around the world will take part today in a performance of Mahler’s epic 8th symphony consisting of 1,200 elements, including a double chorus, children’s choir, a full orchestra and an organ. The event is a culmination of a year of work; all artists recorded their parts in isolation besides the children’s choir. Tickets can be purchased here.

Yearly Japanese festival will set a mountain on fire: Today, the grassy hillside of Mount Wakakusayama in Japan will go up in flames as fireworks go off in the background as part of celebrations for Wakakusa Yamayak. The origin of the festival isn’t totally clear, but might relate to border conflicts between the great temples in the region or to ward off wild boars.

• New insights into antiquities taken by the Nazis: Scholars are looking into how German forces during World War II looted artifacts such as on the Greek island of Crete. Nazi officials pillaged these valuables for their own personal gain, but many were also destroyed, which is why researchers around the world are hoping to gain greater insight into this often overlooked aspect of German occupation.

Exhibition of Beirut’s restored artwork: The Beirut Museum of Art has inaugurated the exhibition “Lift” featuring 17 paintings by Lebanese artists that had been damaged by the port explosion in 2020, and have since been restored as a result of a UNESCO initiative.

The world’s first vegan violin tunes up: Berries, pears and spring water are just some of the natural ingredients relied on for the construction of the instrument by English violin-maker Padraig O'Dubhlaoidh. Traditionally, animal parts like horsehair, hooves, horns and bones are used, especially to glue pieces together. The £8,000 instrument is sure to be music to some animal lover’s ears.

🇷🇺  NAVALNY SAGA & PUTIN’S INTENTIONS


One year ago anti-corruption lawyer and politician Alexei Navalny was detained in Russia, marking the effective end of domestic opposition to Russian president Vladimir Putin. In the time since, more than half of the former coordinators of Navalny's headquarters fled Russia. Even Navalny's name is forbidden: Putin never says his name, calling him "this citizen."

At the same time, Navalny’s imprisonment and the de facto end of the opposition have changed Russia. The fear of persecution, the lack of alternatives and the total censorship and propaganda have caused Putin's ratings consistently downward.

An aging leader with no successors, no enemies and dwindling popular support is finding it increasingly difficult to explain why he must continue to rule forever. In such a situation, there’s nothing quite like an external threat to fuel the raison d’être of the authoritarian regime. In Putin’s eyes, the perfect threat right now is NATO expansion, and the perfect enemy is its neighbor Ukraine and its attempts to join the military alliance. Whether Russia's president is ready to engage in a real war is the great unknown, but its aggressive and uncompromising foreign policy — like his disposing of Alexei Navalny — is the latest legitimization of his increasingly absolutist rule now into its third decade.

Read the full story: What The Alexei Navalny Saga Tells Us About Putin’s Intentions On Ukraine

🇨🇴  FROM HOSTAGE TO POTENTIAL HEAD OF STATE


Íngrid Betancourt spent more than six years as a prisoner of the Revolutionary Armed Forces of Colombia (FARC) terror group in Colombia, an experience that is sure to play a role in her recently announced presidential campaign. Betancourt, who is 60, is running as part of the Verde Oxígeno and is the only woman in the Centro Esperanza Coalition (CCE), a centrist alliance.

Betancourt could be a boost for the coalition and embody its goals of transforming, overcoming polarization and, as its name indicates, giving hope to Colombia. In particular, the centrist candidate who in the past has been largely focused on anti-corruption and environmental protection, has said she will make women’s rights a cornerstone of her campaign.

Read the full story: Ingrid Betancourt, A Hostage Heroine Reinvented As Feminist For President

♀️ 😔  YOUNG WOMEN FACE THE BRUNT OF THE COVID-19 MENTAL HEALTH CRISIS


A growing number of studies around the world show that COVID-19 and lockdown restrictions have prompted a disproportionate increase in mental health illness among teen girls. These include rising suicide rates among adolescent females in the United States, Germany and Spain and a higher prevalence of anxiety and eating disorders in Israel. But why are women being disproportionately impacted?

There’s a range of reasons. In India, for example, young women had increased difficulty accessing education resources when schools went online and shared a disproportionate burden of household tasks as opposed to their male peers. Around the world, social media also played a significant role; without access to in-person socialization and hobbies, young people spent more time online, often comparing themselves to others, impacting feelings of self-worth. The situation is particularly dire given the challenges of accessing mental health support resources during the pandemic.

Read the full story: Why The COVID-19 Mental Health Crisis Is Hitting Teenage Girls The Hardest

💡  BRIGHT IDEA


Norwegian mobility company Podbike has announced that Frikar, its four-wheeled enclosed electric bike, will soon hit bike lanes on home turf. The futuristic-looking vehicle does require the user to pedal, which powers a generator and drive-by-wire system that keep the Frikar running — with a speed limited to 25 km/h.

#️⃣ TRENDING

“Mãe De Bolsonaro” is the top query on Twitter in Brazil, after news that Brazilian President Jair Bolsonaro’s mother Olinda Bonturi Bolsonaro had died at age 94.

😄📚 SMILE OF THE WEEK

Photo of the new President of the European Parliament Roberta Metsola

New President of the European Parliament Roberta Metsola

Philipp Von Ditfurth/ZUMA


London’s legendary bookshop Waterstones Gower Street tweeted a photo of a letter from an anonymous user confessing to having forgotten to pay for their books some 48 years ago. Owing approximately £100 ($136), adjusted for inflation, they had sent through £120 ($163) to make up for their tardiness. Touched by the kind gesture, the bookshop reciprocated by donating the money to the largest children’s reading charity in the United Kingdom.

👉   OTHERWISE ...

Dottoré! is a weekly column on Worldcrunch.com by Mariateresa Fichele, a psychiatrist and writer based in Naples, Italy. Read more about the series here.

Bucket of tears

I’ve been thinking and thinking about a patient of mine since yesterday. His name is Giovanni.

Psychiatrists, you might not know, are quite often asked the same unanswerable question: "Why does one become insane?”

When I was younger, I searched and searched for an answer, losing myself in scientific explanations about synapses, neurons and neurotransmitters.

By the end of my studies, I’d realized that the only thing that was clear was that I’d been clutching at straws to justify my work and give it a semblance of scientific dignity. In the years since, I’ve forced myself, in defiance of the authority of my position, to reply with a laconic but honest: "Sorry, but I don't know."

So when Giovanni asked me that same question, he was not happy at all with my answer. “Dottoré, how’s it possible that you don't understand why I became crazy?”

When he tried to ask me again one day, I tried a different response:

"Giová, do you cry?"

"No. Why?"

"Imagine that the tears that you don't shed, that you force yourself not to shed, because that's what you've been taught to do, all end up inside your heart. The heart is an organ that pumps blood, which brings nourishment and oxygen to the whole body. But over time those diverted tears accumulate to the point that the heart begins to pump them instead of your blood. Slowly your body becomes sick, but the part that suffers the most is your brain. Because tears don't contain oxygen and nourishment, just sadness."

I expected a reaction to this fanciful explanation, but instead Giovanni kept quiet and eventually left.

The next time I saw him, he said: "Dottoré, I've thought about it. I know you told me about the tears to make me feel better, but maybe you’re right. Because sometimes I feel that I have a lake, more than a heart. But it takes a very powerful pump to pump out all that water, and my heart alone cannot do it. And now that you've explained to me how I became crazy, can you also tell me if I'll ever get better?"

"Do you want another story or do you want the truth?”

"This time, I’d rather have the truth!”

"The answer is always the same then. I'm sorry, Giová, but I don't know this either. But I can tell you one thing for sure. I'll help you slowly, slowly with just a bucket. Because the truth is, not even I have that pump."

⏩  LOOKING AHEAD

• Italy's parliament will convene Monday to begin the process of voting for a new president to succeed Sergio Mattarella for a seven-year term.

• Qualification games for the 2022 FIFA World Cup will be held from Jan. 27 to Feb. 2 for South, North and Central America as well as Asia. Argentina’s national team will not be able to rely on superstar Lionel Messi, still recovering from COVID-19.

• Next Thursday will mark 100 years since Nellie Bly died. The American journalist is known for her record-breaking 72-day trip around the world in 1889, inspired by Jules Vernes’ book Around the World in Eighty Days


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