Talking point
Germany’s fiscal position – too good to last
At a time when there are increasing voices demanding a more flexible interpretation of the Maastricht deficit rules, German Minister of Finance Wolfgang Schäuble has presented his budget plan, which does without any new federal debt between 2015 and 2018. This comes much to the chagrin of France, where his colleague Michel Sapin has been forced to admit that this year’s deficit will be at least 4.3% of GDP and that meeting the 3% target needs to be postponed for the third time until 2017 at the earliest. [more]
Germany
Focus Germany: Heightened risks
The recent positive surprises provided by real economic indicators have for now banished concerns that Germany might slide into recession in Q3. However, the ongoing geopolitical risks and the question marks hanging over the expected cyclical upturn will probably lead to weaker growth in exports and company investment. That is why we have scaled back our growth forecast for the winter half-year 2014/2015. Thus, we have lowered our forecast from 1.8% to 1.5%. In our current issue we also address Germany’s fiscal position, we analyse the consequences of potential Russian gas supply disruptions and we take a look at the investment behaviour of German households.  [more]
European integration
Referees or spectators? National Parliaments and subsidiarity in the VIIIth European Parliament
The interest for higher democratic accountability in the EU is stronger than ever. Indeed, there is scope for action for stronger involvement of national legislatures at EU level. Within the time frame of the eighth legislative period of the European Parliament (2014-2019), an interinstitutional agreement is a viable option. This could lay down a working definition of subsidiarity, enhance interparliamentary cooperation, and structure the use of ‘yellow cards’. In the medium term, a stronger role for national parliaments would require outright treaty revision.  [more]
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