The German government should do its best to restart EU economy The EU is divided to two unequal parts: the strong German economy with robust financials and the 27 economically unstable and vulnerable member states. Finland should also be excluded from the unstable countries lists. Obviously high measures should be taken to restore the economic balance in the whole EU zone.
After the economic downturn began in 2008, many European governments responded by responding with extreme austerity. Particularly, most responding with cutting government spending. This had the effect of dampening the economies in which these policies were pursued. By enacted fiscal stimulus, the German economy can create demand for labor, prompt private investment into the economy, and complete valuable projects which the stimulus funds are being utilized for.
As stocks and bonds have taken major hits in Europe and especially Germany, it is the time when the government of Germany needs to take major steps to help jump-start the economy. In 2009, Germany faced a similar crisis and used steps to provide stimulus. They need to create ways for young people to make much needed cash in which they will give back to the economy.
The German government should let the chips fall, More stimulus would just put off the inevitable downturn. Everyone will be over more quickly if they let the economy return to a more natural state. More stimulus would only put it off for a few months while adding more to the debt.