The article discusses how the 2008 financial crisis observation by Robert Lucas holds true today, as European nations reassess their financial policies in response to the war in Ukraine. Germany is poised to relax its debt limits to fund an additional €1 trillion in defense and infrastructure over the next decade. The EU has introduced an €800 billion plan allowing increased borrowing for defense. Meanwhile, Britain's approach remains more conservative, adhering to strict fiscal rules while seeking to raise defense spending slightly by cutting other budgets, creating a contrast in strategies among European nations.
In a shift reflecting the urgency of the current geopolitical landscape, Germany plans to relax its debt brake rule to boost defence and infrastructure spending.
The EU has permitted member states to increase borrowing for defence, signifying a historic economic policy overhaul amidst the pressures of the ongoing conflict.
Collection
[
|
...
]