Rates on the debt (Part 1)

The debt of the German states are high. If the stability council can force a relief phase, the debt would grow even higher. The recent study by the Institute for Economic Research in Halle clearly shows the weaknesses of the newly established Council stability. In addition, if the debt then at some point should be so excessive that the Stability Council is forced you to install a sanction-free reorganization plan, then the European experience teaches that nothing as bad as it looks. One need only recall the political intervention of France and Germany 2002/2003, when both countries blatantly and manifestly disregarded the Stability and Growth Pact and on the political ways of the EU Council to put sanctions mechanism ineffective. There are structure and composition of the institution “stability council” that make up the fundamental problem of its weakness. With the finance ministers of the federal and state governments, supplemented by the Federal Minister for Economic Affairs, the public debt-maker is a kind of self-evaluation.