Europe Embraces the Cult of Austerity – But at What Cost?
THE OBSERVER: Eurozone finance ministers were still committed to spending their way to recovery only a few months ago. Then came the Greek debt crisis, which threatened to engulf the continent. Despite warnings from the US, Britain and its EU neighbours are braced for unprecedented public sector cuts

German Chancellor Angela Merkel is preparing her country for unprecedented cuts. Photograph: The Observer
When Angela Merkel talks about budget cuts these days she likes to invoke the "Swabian housewife" – Germany's equivalent of the parsimonious Scot. In that part of south-west Germany they have a reputation for scrimping and saving. Famously, Swabia's cooks make hearty soups out of all the leftovers in the kitchen. To the German chancellor they are the embodiments of good housekeeping.

"You can't keep living beyond your means," says Merkel. "One should simply ask the Swabian housewife."

By extolling the virtues of old-fashioned thrift, Merkel hoped last week to go some way towards explaining to ordinary Germans why they must suddenly swallow the most painful austerity pill administered by their government in generations. Last Monday, with some trepidation, she announced massive cuts of €11.2bn in 2011 and plans for a total of €80bn by 2014. Yesterday, in Stuttgart and elsewhere, the inevitable protests began on the streets.

Even for a country painfully aware, because of its history, of the danger of debt, the extent of corrective action came as a shock. "Germany has never agreed to an austerity package to this extent, but these cuts have to be made in order for the country to establish a stable economic future," Merkel said.

Across Europe other governments, scared by the Greek debt crisis, the repercussions of which imperil the very existence of the euro, have been doing the same, raising the spectre of mass layoffs in public services in the name of European unity. >>> Toby Helm, Ian Traynor and Paul Harris | Sunday, June 13, 2010

David Cameron Faces EU Fight Over Budget Vetting
THE TELEGRAPH: David Cameron is facing a fight with European leaders at his first summit next week over demands for Britain to have its budget vetted by the EU before it is presented to parliament.

He will refuse to sign up to plans, supported by all Europe's finance ministers except Britain's, in which officials would assess the "main assumptions" of a budget before it was seen by MPs and the public.

The "budgetary surveillance" demand will overshadow the prime minister's first EU meeting next Thursday and will put him at odds with Angela Merkel, the German Chancellor and Nicolas Sarkozy, the French President.

Herman Van Rompuy, the EU President, and the European Commission have proposed that all treasuries must discuss their budget plans with other European finance ministers and officials before they are presented to national parliaments.

Mr Van Rompuy said: "The main assumptions underlying the budgetary plans, like the levels of growth or inflation, would be examined. So would the main aggregates, like total revenues, total spending and deficit targets.

"A government presenting a budgetary plan with a high deficit will have to justify itself in front of its peers. There would still be time to adjust the plans before the final budget is presented."

Mr Van Rompuy has defended the plan saying it will help national parliaments to better judge complicated budgets. "A national parliament would be able to judge its governments' budget plans knowing fully their credibility," he said.

The measure is intended to prevent a repeat of the Greek debt crisis and to help the EU police rules, applying to all 27 member states, limiting public spending in order to safeguard the euro. >>> Bruno Waterfield in Brussels | Tuesday, June 08, 2010

Cameron: 'Years of Pain Ahead'
THE SUNDAY TIMES: DAVID CAMERON has warned that the economy is in a far worse state than previously thought and signalled that Britain faces years of “pain” as the spending axe falls.

The prime minister indicated a sharp downgrade in official growth forecasts and revealed that welfare and public sector pay would bear the brunt of budget cuts.

It is understood that tough measures being considered to help control the £156 billion budget deficit include benefit freezes and cuts in child tax credits. There are also likely to be below-inflation pay rises for state employees on top of next year’s planned freeze.

In an interview with The Sunday Times, Cameron said: “Proper statesmanship is taking the right action, explaining to people the purpose behind the pain.”

The prime minister said there would be no “trampoline recovery” of the economy. He warned there was a “serious problem” with forecasts inherited from Labour of robust 3% growth next year.

“There is a huge amount of debt that has got to be dealt with. Crossing our fingers, waiting for growth and hoping it will go away is simply not an answer,” he said.

“The country has got an overdraft. The interest on that overdraft is swallowing up things that the nation should otherwise be spending money on. We have got to take people with us on this difficult journey.” Read on and comment >>> Jonathan Oliver, Political Editor | Sunday, June 06, 2010

Auch ohne Mondlandung ein astronomisch hohes Defizit: US-Präsident Obama präsentiert seine Budgetpläne für die nächsten Jahre
NZZ ONLINE: Der amerikanische Präsident Obama hat am Montag seine Budgetpläne für die nächsten Jahre präsentiert. Obwohl namhafte Einsparungen geplant sind, wird das Defizit im laufenden Jahr Rekordhöhen erklimmen.

Der scheint trügt: Obama ist weit weg vom Heiligen-Status – er muss sich mit Profanerem befassen. Bild: NZZ Online
Der amerikanische Präsident Barack Obama setzt den Rotstift beim Haushalt an und macht dabei auch vor dem Stolz vieler Amerikaner, der Raumfahrt, nicht halt. Doch auch ohne bemannte Missionen zum Mond wird das Defizit 2010 mit 1,56 Billionen eine Rekordhöhe erreichen. 120 Programme und Projekte will Obama insgesamt kürzen oder streichen. Dennoch liegt der Umfang des von ihm vorgeschlagenen Etats mit 3,8 Billionen Dollar um drei Prozent über den geplanten Ausgaben im laufenden Haushaltsjahr. >>> sda/dpa/afp | Montag, 01. Februar 2010

THE TELEGRAPH: Barack Obama forecasts record US deficit of almost £1 trillion: President Barack Obama on Monday forecast a record budget deficit of $1.56 trillion (£975 billion) for 2010 – worse even than the White House's prediction made just a week ago – as red ink threatened to submerge his leadership and reforms such as health care. >>> Alex Spillius in Washington | Monday, January 01, 2010

Fillon double le budget dédié à la vidéosurveillance
LE FIGARO: Le premier ministre a présenté vendredi un plan de prévention de la délinquance et d'aide aux victimes consistant en un renforcement de mesures existantes.

François Fillon, le premier ministre de la France. Photo : Google Images
C'est la conséquence de l'avertissement lancé par Nicolas Sarkozy fin mai, et répété en septembre, après l'annonce d'une baisse des résultats dans le cadre de la lutte contre la délinquance. François Fillon a présenté vendredi à l'issue d'un comité interministériel qu'il a tenu à Villeneuve-la-Garenne, dans les Hauts-de-Seine, un plan dit de prévention de la délinquance et d'aide aux victimes. Plan constitué principalement d'un renforcement de dispositifs déjà existants. François Fillon a d'ailleurs voulu se justifier sur ce sujet en expliquant : «La prévention de la délinquance, c'est une action de long terme (...) c'est une action qui ne se satisfait pas de coups d'éclat». >>> J.B. (lefigaro.fr) Avec AFP et AP | Vendredi 02 Octobre 2009

Budget 2009: Gordon Brown Declares Class War with Tax on High Earners
THE TELEGRAPH: Gordon Brown has been accused of launching a "class war" against Middle Britain as he introduced a new 50 per cent top rate of tax to make the wealthy pay for the catastrophic state of public finances.

Prime Minister Gordon Brown. Photo courtesy of The Telegraph
Casting aside more than a decade of New Labour ideology, the government broke a key election manifesto promise by announcing an increase in income tax for those earning more than £150,000.

Alistair Darling, the Chancellor, also announced that the highest earners will lose valuable tax breaks on pension savings, as part of a package of measures that will see the tax grab from high earners raising up to £5.5 billion a year - an average of £18,333 annually per person.

The surprise new measures - which mean Britain will have the highest top rate of any major economy in the developed world - came as Mr Darling was forced to lay bare the true extent of Britain's levels of borrowing in his Budget.

In the worst economic forecast since the Second World War, he said he planned to borrow another £700 billion over the next five years, taking the national debt to £1.4 trillion.

Mr Brown and Mr Darling were accused of indulging in party politics at a time of national crisis by seeking to exploit the divide the Tories' on tax policy.

It was also suggested that the Prime Minister was returning to Old Labour policies designed to shore up Labour's core vote ahead of an election next year that he is on course to lose.

Labour MPs in the party's heartlands will welcome the move and ministers will argue that taxing those on very high salaries is popular among many voters.

But in raising the top rate of tax the government risk alienating the middle class voters that swept Tony Blair to power in 1997. >>> By Andrew Porter, Political Editor | Thursday, April 23, 2009

Is This $4 Trillion Dollar Man Arrogant and Delusional, or What?
Photo of President Barack Hussein Obama courtesy of The Times
TIMES ONLINE: President Obama set up a long and bloody battle with Republicans today when he unveiled an almost $4 trillion budget that raises taxes, slashes military spending and increases the national deficit to its highest level since World War II.

Mr Obama's first budget included a series of contentious provisions that produced howls of protest from Republicans, triggering what will be a major fight on Capitol Hill where the president has to get it passed by both the House and Senate.

The 140-page budget outlines forecasts an enormous $1.75 trillion deficit for this fiscal year, which ends in October, in part because it makes clear that Mr Obama is anticipating yet another massive bailout for the banking sector, on top of the $700 billion package passed last October.

Such a move would be unpopular with the American public and strongly opposed by Republicans and some Democrats on Capital Hill, because the banking sector is widely blamed for the economic crisis. The document includes a $750 billion set-aside in case more rescue funds for Wall Street are needed. President Barack Obama Unveils $4 trillion Budget >>> Tim Reid in Washington | Thursday, February 26, 2009

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The Netherlands: Budget Does Not Acknowledge Real Problems
Photo of Geert Wilders courtesy of Google Images
NRC HANDELSBLAD: The national budget for next year holds no surprises. This government still refuses to acknowledge the fears of a vast growing majority of Dutch people that believes Islam is the greatest threat to our national identity. Staggering amounts of immigrants are entering our country, while almost 60 percent of Dutch people consider mass immigration to be the biggest mistake since the Second World War, a history monitor by the Historisch Nieuwsblad revealed. The budget for 2009 shows that the financial burden of the government’s mass immigration policy is astronomical and puts a huge strain on Dutch society.

The Dutch pay extremely high taxes and, as the budget presented today shows, the government will continue to spend an insane amount of taxpayer’s money on foreign development, futile efforts to curb climate change, and keeping its dream of a multicultural society alive.

Minimum sentences

In the mean time, elderly people in nursing homes are forced to remain in their pyjamas all day and to wear diapers because there aren’t enough caretakers to help them get dressed or go to the toilet. The Netherlands was once renowned for its excellent healthcare system, but the quality of healthcare is rapidly deteriorating. And although the traffic congestion on many motorways is so severe that it takes commuters hours to get to work, no new roads are being constructed.

Crime rates amongst second and third generation immigrants are unnervingly high. Because of mild punishment most of them will never see the inside of a prison cell but will do a few hours of community service at most. To counter this, we must establish minimum sentences to which judges are legally bound. Budget Does Not Acknowledge Real Problems >>> By Geert Wilders | September 16, 2008

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