Why Austerity is Returning to Europe
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The latest Eurostat data didn't make for happy reading with most of the EU running a deficit and 11 members in violation of fiscal rules. In this video, we'll explain Europe’s debt crisis; what the EU can or should do about it; and how it might be fixed.
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1 - ec.europa.eu/eurostat/web/pro...
2 - www.ft.com/content/5125db1e-a...
3 - www.lemonde.fr/en/les-decodeu...
4 - www.icij.org/investigations/c...
5 - www.ft.com/content/378ab955-e...
6 - rightcasa.com/all-of-the-taxe...
7 - taxfoundation.org/blog/spain-...
8 - www.ft.com/content/5125db1e-a...
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Time to listen to my daily dose of economic problems via a soothing voice
😂
Good point, to be honest.
who
Remember to listen to different voice. You're not so special that you're immune to propaganda, nobody is.
ah yes crisis asmr
Imagine calling us lazy and irresponsible back in the debt crisis and now only 2 countries are doing better than Portugal debt wise. Lmao.
ya, eu também ri quando vi esse gráfico hahaha
I don't remember calling us lazy,but heavy spenders it was kinda true before but not now
A dica do Medina de orçamentar e não executar a dar frutos diplomáticos.
You have followed austarity closer than we..
As an eastern european I feel empathy for southern europe when I hear such prejudiced opinions. Though negative stereotypes about us are completely different than about you - we are never assumed to be lazy and you are never assumed to be drunken dummies - both are equally detached from reality.
The EU changed the fiscal rules in 2023.
It's more flexible now.
This video addresses the old fiscal rules.
How convenient....
@@brownbear1657 He's right thought, there's been a lot of complaints about the system for well over a decade with how inflexible the older system was.
Maybe a more flexible system was needed to give countries more room to breath, as long as there is pressure to brings debts under control.
Sounds like USA's debt ceiling
@@paul1979uk2000 "Maybe a more flexible system was needed to give countries more room to breath, as long as there is pressure to brings debts under control."
So lower the "pressure to bring debts under control", so that there is a flexible system in which... there is "pressure to bring debts under control"? Escalate to deescalate
The us debt ceiling isn't real because they controls their own currency, the EU countries do not
Last week „wages are to low“ today „austerity” make up your mind Europe
Fuck austerity
Tax the rich if you are really concerned about debt
Gotta spend money to make money
@@NorroTakuWow what a great idea, I wonder if it's been tried and failed for the last 70 years in europe..
@@NorroTaku , Europe is already the most taxed continent in the world.
Anymore reckless increase in tax will just kill innovation and make Europe an extremely unattractive place to do business.
Also if you want public services to be funded better in the long-term, you'll need to address your low fertility rates.
@@inbb510Europe is also the best continent in the world, correlation? I think not. I would advocate for a corporate tax reduction, import tax and low bracket income tax. Ireland has a healthy corporate tax rate and VAT for example and I would increase in RCGT, LVT, CAT, VAT in many nations. Corporate taxes are a highly inefficient form of taxation and only really serve a few functions, 0-15% is ideal I would say.
Everyone needs to stop acting like Europe is a terrible place to do business or that it's stifling innovation due to their welfare state and more liberal policies. It's the complete opposite, Sweden, Finland, Denmark and Norway are all more innovative than The USA in qualitative metrics like startups per capita, international patents filed per capita, research papers published per capita, etc. Stockholm is just behind San Francisco for example.
Furthermore, Ireland has a fertility rate above The USA slightly but it's still under the replacement rate and is something to address.
@@inbb510 The most taxed (in the "developed" world) sure but that has little do with how those taxes are distributed. And I'd argue most places are severely undertaxed.
Also a lot of money to be made from consumers is attractive to business. Taxing business and investing in social services leads to more consumption overall. It's not that simple.
Another day, another economic problem in Europe
But we have rainbows!
We just live in pain
That's what analysts and economist do, they find problems to discuss solutions indefinitely... if you don't talk, then you have no problems like China, nothing to talk, everything is perfect 🤣
Well I think the graph at 1:25 puts things a little into perspective. In fact Europes fiscal balance % GDP remains one of the highest in the world.
Yeah, it's pretty funny. EU's been "falling apart" every week since 2002 and we're still here.
Funny how Hungary has one of the biggest deficits and the yearly budget has already been spent. Not to mention the highest tax rate in the region. But the government invests mostly in propaganda. Any other public institutions are kept on a bare minimum budget
Corruption is expensive
@@edc1569 Exactly
In the UK it feels like we've been in a perma-crisis ever since 2008. When's the last time we had a 'good' year?
Before Tory austerity
@@grimaffiliations3671 since when did the tories run europe
what has that got to do with this this is the eu countries
From macroeconomic view, 2016 was last OK one, then large companies freaked out due Brexit uncertainity and reduced investments. Rest of EU had good time until 2019. Since then, all Europe is in some sort of mess with no end in sight. Some minor rebound here and there, but my wallet says "No".
@@terryj50 the comment I was replying to is about the uk
Thank you for providing links to your sources. I'm from Cyprus so my interest was piqued when you said that the Cyprus budget surplus in 2023 was due to Russian money laundering. You cite two articles that were published in 2023, but they actually detail Russian money laundering in Cyprus from before the Ukraine invasion, with some brief mentions of the impact of the outbreak of the 2022 Ukraine invasion. I am not denying that Russian money laundering was the bedrock of our economy the past couple of decades, but I'm not sure whether it's accurate to say it was responsible for the 2023 government surplus, it's not clear to what extent Russian money is still being laundered in Cyprus.
TLDR research is always poor, don't worry
@@nettcologne9186 I’m still a big fan, I think it’s a good channel to get an overview of current affairs. I like how they condense and simplify information and cover a broad scope of news, hence their name, can’t blame them for occasionally making errors.
The fuck you mean "Returning" ? Like it has ever stopped since 2008 lmao.
They have been spending like crazy since 2016
No we didnt.@@nadie8093
this is obviously wrong if you even just watch the video
@@nadie8093 Government spending a lot doesn't mean the average person sees a dime. Most of this spending goes to pensioners.
@@albevanhanoythe fact that it goes to the pensioners is, again, the electorate fault because it doesn't vote to cut pensions, but it still isn't austerity. In the same way that you can be "austere" and give a bit of money to those who really need it in the right way, you can be a heavy spender and give it to people who don't need it.
Slow growth and a high tax burden, but rent keeps rising. Maybe tax the land owners?
And the multinationals, who not only made huge profit because of corona, but also although inflation is decreasing still keep the high food prices
“but also although inflation is decreasing still keep the high food prices“
You obviously don’t understand inflation.
That won't help. Landowners have the right to set their prices and the need for housing is extremely price inflexible. The landlords would simply forward that tax increase to tenants.
@@looseycanon Thats the opposite of how an inflexible (supply-inelastic) market works.
The supply is constant, so in a P Q diagram the S curve is a vertical line. The equilibrium is solely determined by demand. Taxing would keep the price constant, only decreasing the supply surplus.
Google georgist economics for a more comprehensive breakdown.
Land taxes are the most liked taxes by economists across the political spectrum for a reason.
Land value taxes are the only taxes that cant be passed on to a consumer, because ant increase in rent will open you up to an identical increase in taxes
I just saw thru the window. Even the sun is going down. What a crisis.
CYPRUS MENTIONED LETS GOOOO
Love that you've put David Cameron's 'For the Record' on display in EU news
Its actually crazy that not more is being done to rethink budgets. It is a moral and existential must for us to deal with cost of living, housing, climate, Russia at an absolute minimum, so we have to spend more, but we are already absolutely drowning under debt.
We have to reinvent ourselves. Austerity was a disaster in countries like the UK and ended up being counterproductive. On top of that we have to massively rebuild and modernise our infrastructure, and reinvest in our healthcare, transportation, immigration, social housing, and utilities systems. We can do all of it like we've done before but its going to take a monumental effort and amount of money. Its far past the time.
In UK "Austerity" has meant "Spent a higher % GDP on public sector every single year than in any year from 97-07".
So not austere at all
Thats great champ but we need to focus on making the special line go up /s
The US pushes austerity to keep you weak and unable to threaten American hegemony.
You are wrong, european governments need to spend less
@@yoroshikuonegaishimasu8649 Europe needs to spend more but also to grow more. Taxes and regulations need to be cut, as well as some public services need to be concessioned in order to increase efficiency. The pension systems also need to be reformed given the demographic context.
I never knew it stopped.
It's funny that we talk about how we aplied austherity when tons of conutries have chronic deficits.
Austerity never left the chat.
There's almost never been such a thing as "austerity" in Europe, expecially in the south, come on. Running deficit after deficit and never cutting spending isn't austerity
@@stefamart7he is a commie
At some point, its useless to have a rule regarding debt at all, if everyone and their mother runs a "debt deficit" 😅
Whats the point? 🙈
What's the point? I'm voting out of the EU next time. Italy freaking again. For home improvements!? They need to be put on economic quarantine.
Some of us follow the rule, the others should be punished!
@@Joey-ct8bmbro they literally have some of the best growth rates in Europe, Germans are the idiots for their debt break rule which has literally crippled their infrastructure over many decades and left them out of EV markets
@@Joey-ct8bmand the historical weakness of the Italian and other southern European economies literally helps German exports by weakening the Euro lmao - there’s a reason Germany wanted the Euro…
@@nekdo_kavc And are they? I think we both know better... 🙄
These days Europe decided to "share" the debt 🙈
If Poland didn’t have to spend 4 percent on its Military because of its Geopolitical situation, it would be almost exactly where Ireland is 🤔
No. Poland spends at least 2 % long term. So the real difference is only 2%. With 5,1% debt in 2023 it would come close to 3% deficit in 2023.
@@2mek99 if you’re going to say the long term spending is 2% you need to compare it to long term deficit. It’s dishonest to change only on half of the equation.
@@Zzzooooppp Deficit is deficit. Long term the goal is to balance the revenues and expenditures.
@@2mek99 you don’t understand what is being said
Poland also receives a ton of money from the EU, so without it the situation could be the same as Italy.
eu need trade with china and usa, and be an economic link between China and the USA
Poland is exception here with high debt dude to military spending.
Austerity is the same as "false economy" - shortsighted penny pinching which will end up costing more in the future. The slow growth and increased spending on defense currently in Europe is at least mostly to blame on past austerity - missed opportunities and inadequate maintenance in the past costs more now. Doubling down on austerity will only exacerbate the problem.
Wrong, high spending is shortsighted. Austerity is spending less so it cant end up costing more, is impossible by definition
@@yoroshikuonegaishimasu8649 quick economics lesson: If you try to save money on your car by not getting oil changes or replacing worn tires, you soon won't have a car. Spending on maintenance, whether infrastructure or military or healthcare, is cheaper than repairing or replacing it later. A lot of the current rise in government costs is having to replace things like militaries and infrastructure which were allowed to fall into disrepair or disarray under previous austerity measures. Further austerity won't help replace them, and despite what libertarians, neo-liberals and anarchists say they are considered necessary by modern societies.
@@davidray6962 this. Austerity only makes sense if governments were wildly overspending/printing money (IE hyperinflation) which is pretty rare. Otherwise it's bad policy.
@@davidray6962 The vast majority of expenses of these European countries are not just merely maintenance. It takes very little to maintain infrastructure, even healthcare when managed properly isn't all that expensive.
You literally can't keep spending money you don't have without consequences, inflation and interest payments will destroy you. Austerity is only necessary when governments keep making short sighted decisions, deficit spending to gain quick political wins.
@@pax6833That's exactly what they did.
There are massive depts within the target payment system which gives unlimited free credit.
0:21 "European budgets" No, that's just budgets in the EU.
Austerity is the government saying: The structural problems of the system are bringing closer its end, but as we won't implement radical changes that will make some people less rich, you're gonna be poor for some time, it won't last long (wink wink).
You hit the nail right on the head. Austerity doesn't work and hasn't ever worked. It merely perpetuates and deepens inequality and kills economic investment, growth and productivity (which makes us all yet poorer). And as you allude to, austerity doesn't begin to address the elephant in the room: the effective economic enslavement - and we're not being over-dramatic here - of the vast majority of the population to a tiny but incredibly wealthy fraction of the population who can afford to exist entirely detached from the miserable reality that the rest of us occupy.
The transfer of wealth from those of working age (particularly the young) and those in employment to those who are rent-seekers and economically inactive (and giving tax benefits to encourage and facilitate this trend) is strangling the life out of society. The inequality has always existed but is now really noticeable, even to those who are firmly well up the middle classes yet still starting to struggle. For those bumping along the bottom it is incredibly hard to see any way out of this perpetual misery.
Which simply invites ever worsening political stability, populism and - eventually - results in democracies in existential crises. And that's particularly true when amplified by the corrosive effect of social media. Where fostering rage amongst the downtrodden is the most lucrative way for large big-tech social media platforms to make money. There's a huge profit motive in leveraging poverty and outrage that - as with Brexit - turns up at the ballot box and causes yet more havoc.
You can understand some people who want to "burn the system to the ground". Because honestly, in their position why wouldn't they?
@@appstratum9747
I agree 100% with your analysis. I hope that we can see in our lifetimes systems that put the well-being of people as its sole goal , not growth, not capital, not meaningless indexes and stats, just the well-being of people and the quality of their lives.
@@ahmedtoufahi5198 Indeed. Totally agree. And we're going to have to because with automation and AI (what I do for living) being able to replace people like never before in a wide range of (up until now lucrative) professions (including my own), the whole concept of distributing wealth in exchange for labour goes right out of the window. That leaves all the money in the hands of a tiny few who own all of that automation (or the infrastructure that it runs on). The rest of society becomes redundant from these owners of said capital.
But the bottom line is that the rest of us will not accept starving to death and having no education and healthcare. And will lash out, self-destructively if necessary.
So we really are going to have to have a major rethink of society putting people, quality of life and happiness/wellbeing/satisfaction right at society's core. Because all the traditional measures that you've mentioned become meaningless if they're relevant only to half a dozen global trillionaires (and even then in the abstract because that wealth is so obscene that it becomes meaningless to them, too).
As we know, the growth figures say one thing and people's experience is already quite another, because that growth in GDP isn't shared equitably across the population. The stats have already become meaningless drivel for the majority of ordinary people. And they know and feel it. And are voting for destabilising populists because they feel powerless, are getting to the point of desperation and willing to vote for anything that upsets the apple cart and (they hope) gives them a chance.
We cannot continue down that road. We just can't. It's a shame that politicians (at least for the most part) have their heads stuck in the sand. They're so addicted to the concept of growth (to make their lives easy, because traditionally economic growth leads to political success) that they don't really think much about the situation when that scenario no longer applies and/or when growth no longer happens at all (at least per capita) as processes and workflows reach as close as possible to 100% efficiency.
Most politicians don't understand that the concept of economic growth is historically a very recent thing (from the industrial revolution onwards) but that always was going to be limited by maximum attainable efficiency and finite natural resources to consume.
The bottom line is that we've all become fixated on the numbers and stats rather than what really counts: living a happy, fulfilling, emotionally satisfying and stimulating life and for us all to be able to do that sustainably and securely wherever we live in this world. Ultimately the economy is just a toolbox to facilitate that. The tools are not the be all and end all in themselves.
Can you do a TDLR about the UN Security Council meeting yesterday?
Returning?
It never left :(
'Fiscal Funk' is the name of the Tory Party's house band.
can you tell me what eu country the tory party runs
Considering how things have gone with Covid, the energy crisis, plus all the other commitments, they are actually holding up quite well, but it was never going to be easy during a transition which is what is going on in Europe right now, especially on the energy sector and military.
Is it that big of a deal? Not in the short term, but changes will have to be made with reforms to kick-start the economy, after all, remember, we are in a transition that's impacting Europe far more than the rest of the world, especially when it comes to energy, but that's a short term problem, the long term problem is that Europe and especially the EU needs to start being a lot more competitive with high-tech.
In any case, having debt isn't a bad thing if it's managed debt, and honestly, looking at the overall numbers, they're not that bad but could be better.
00:50 how ? Decimation and restarting
Poland and Estonia would meet Maastricht Criteria if they would spend around 1% of GDP on defence like most of EU.
Part of the reason for economic woes could be the massive borrowing and printing of money during the pandemic, which of course causes inflation and larger debt.
Is Wegovy really pronounced with a German/Polish W?
Sorry, but the Czech republic has introduced serious measures, partly higher taxes on some products, partly decrease of subsidies and mainly a pension reform which has been 20 years overdue...
We are therefore expecting our debt to amount to 2,2% in 2024 only, and it might even be much better, as we are expecting serious foreign investments, mainly from South Korea and Taiwan..
It has even been reflected in our credit ratings, as all agencies have given us the best rating out of all the former USSR countries...
That all with our defence spending raising to 2% of GDP...
Yeah, problem is, these effects did not come to pass just yet. You know, how things work around here... we try something and it always ends poorly...
@@looseycanon All the measures mentioned above are effective as of January 1st this year...
Only the pension reform needs to be passed, but I have no doubt it will, thanks to the majority within our current government..
You're right, that the pension reform will come into effect on the 1st of January 2025, but that will only lead to a further improvement of our budget deficit of 2,2% this year..
Plus there will be economic growth of course, as the inflation caused by te Russian war is back to 2%..
Good dept is so much more important then "osterity"
If you cant build the road you cant reap the benefits of the factory
Tax the rich if you are concerned about the the black zero
Rich are already getting taxed. EU has the worlds highest taxes
Denmark should be an example administration efficiency and fiscal policy for the rest of Europe.
I think institutions like the EU really need platforms like this that edecuate people on stories like this and to get a better sense of the bigger picture.
Thank you TLDR for all you do 🙏
The EU needs its own BBC
EU should be abolished
@@elomial724 That would cause an unprecedented economic and political collapse.
@@Loostyc Ecomomical one would only last few months but it is neccesary to relieve Europe from the monstrous eurocommunist regime. What do you mean by political collapse? Also I am not in favour of abolishing EEA/EFTA so I am pro free markets without customs, though Schengen must be abolished too for the time being for solving migration and multiculturalism
@@elomial724 funny joke go get a life and a brain while youre at it
I didn't know it had left ?
It seems worth mentioning that government spending is a part of the GDP. So a comparatively large US deficit and their stronger GDP growth are intrinsically linked. Growing moderately but without a big deficit may - depending on t he country and its economic situation - be the wiser choice. There is demographic change and younger generations have to pay the interest on that debt.
Yay austerity. Can't forget the time the UK did austerity for like 10 years and surprise surprise, it did not help the economy whatsoever 🥳🥳🥳 Just, you know. The NHS going 💥💥💥💥💥
The title is assuming austerity left in the first place lol
What a commie...
Did it ever leave??
Everything is a crisis eheh
Really make you question the leadership or the reporting
Or both
@@legtendgav556 Or the incentives made by platforms to force them to do this amount of click baiting... Or even human nature for being so exploitable by tragedy. Who knows....!
Hardly. Europe fiscal balance % GDP remains one of the highest. If this is a crisis the entire world has been in an economics crisis for decades.
@@XMysticHerox haha wow haha... that would be an unfortunate discovery..............
haha...
Thats just how social media algorithm works today. Negative sells.
Does it really matter cause there ain’t no money anyhow just move the decimal point on paper that’s money
Running a deficit is not inherently bad.. If your country does it every year for 10 years, sure there could be some underlying problems. It all depends on what the money is used for. I would guess a lot of the money spend now is on military, which is a bad thing (economically), but that doesnt mean its been bad all the years.
If country is growing, debt automatically becomes easier to control. If you have debt in your currency, you are in charge of the situation as you can always help yourself by "printing".
Well, you guess wrong. Most of the money is spend on social welfare, infrastructure and pensions.
The EU barely spends its money on the military.
@@neodym5809 The new spending is in large parts military. Though even that arguably feeds back into the economy to a degree both through soldiers wages and the arms industry. Just not nearly as effectively as many other things.
@@XMysticHeroxOr US Weapons
1:39 Is there any list where Denmark doesn't come out on top?
I believe low taxation, if it can be seen as a good thing.
@@960john Low taxation has a price as well: public services must be paid for individually. Which of course is paradoxical since these services ought to be public.
Not mentioning the insane numbers of jobs lost in Italy, Spain ect since many multinational companies have relocated those positions in Portugal. Shamed! Productivity and revenue from countries while jobs removed in lisbon ( horrible houses, expensive rent, etc). Air liquide, Samsung, Airbus, Essity, and millions more! Utterly unfair.
If company moves from one place it means that it will be more profitable somewhere else (which also means more needed).
Cause it worked SO WELL the last time!
She sounds like that woman from the "Rainbow Six" series who briefs you before every mission.
It left?
We could easily abandon the green transition and the military aid for Ukraine…
Austerity has already proven to be the wrong solution.
Has spending more and more been proven to be the right solution?
Why can't EU decrease spending on bureaucracy rather than benefits to citizens @@TheIrishny
@@class9jeeaspirant Bureaucracy is needed to administer the ever increasing benefits for those citizens.
They're not separate.
@@TheIrishny It's got us out of recessions multiple times
@@cosimoserpolla5710 Saying it "gets us out of recessions" is like saying "Morphine fixes broken legs".
It doesnt. It makes things seem nice for a while and piles up more problems down the line.
maybe do the reforms and austerity in economic prosperous times and stimulate the economy during hard times. but i guess politicians and administrators just can't handle money. Maybe government should be stripped down to the bare essentials and let the people themselves decide what their money is for.
romnaia is making some huge energy infrastructural projects atm that will benefit the whole of europe... ofc the debt is high now, but it will pay off in the future so i don't see what the problem is
what's the rational behind 3%? feels like it's just a random number some economist removed from their rear end
Politicians, this was negotiated by politicians, there is no rational basis, they had to put the limit some where and that was that, however it is the point where a modest growth of 1%, and a 2% inflation(assumed as target in the long term) do converge to make your Debt to GDP not grow significantly.
It never left Greece aside from the 3 covid years of 2021-2023.
Lol, that smile when she said “weak growth”😏
"What the EU can or *should* do"
Stick with can do and remove the word should. This is better for impartiality.
Love the channels, also this new reporter! Keep it up.
Returning? It never left
It is not introduction of austerity, it is doubling down on it.
Whenever Georgia presents half the comments are how everyone loves her and the other half are people arguing about what she’s presenting…
Its funny how one of the main contentions in the comments is if "Europe" was ever even practicing Austerity in the first or on the other hand if it ever stopped.
How about the uk?
Not in the EU 🤔
@PaulJohn01 I know so that's why I'm asking a video of the economic outlook of the uk.
@@ksj1526 Maybe they covered that on their sister channel TLDR UK ?
@PaulJohn01 I have subscribed that channel as well, but it seems tldr hasn't made a video for the uk yet, so I hope they can make one.
@@ksj1526 Well if it's negative news about the UK they definitely will 🤣🤣
I think they removed the "UK" part from their logo but kept it on the channel name unlike all their other channels.
Weak gdp growth = lower taxes for the gov.
I don’t understand the logic here.
Weak growth means growth right?
Even if the evonomy stagnate and if tax rate remain the same, ceteris paribus, tax revenue stay the same. No? 😶 I’m genuinely confused.
that is the problem. Ceteris paribus is a strong requirement, which is almost never met. That same 15% VAT means something else in one year and the other, for instance, because of total yearly expanded discretionary income (income after taxes, housing, utilities and expenses to hold down a job). If this is higher, then you earn more on VAT, but if economy is not growing as fast, this discretionary income can even fall year on year despite economic growth, people start saving for worse times and you'll end up paradoxically with lower tax revenue year on year.
Weak growth means high unemployment which means larger deficits to support the unemployed
Governments tend to plan for increase in mandatory spending (for instance pensions and healthcare as population ages). If economy will not keep up with this growing spending demands in the future, they will have an issue. Money markets know that and incorporate higher risk premiums already today, making things even worse. Hence so much panic when growth is weak.
Okay. Got it.
So essentially it is because “ceteris paribus” is a fantasy scenario only used during theory study.
Make sense.
Gvnt needs to get more efficient and stop wasting money. Easy fix.
What will probably happen. EU will increase its spending through deficits, increase inflation target to 3 or 4% to decrease the burden of the debt. Let the population pay through increased inflation.
Keep up. Inflation is almost down to 2% again.
Did austerity ever leave? We had austerity my entire adult life in the UK (and most of this time was whilst we were in the EU before anyone tries to discredit what I'm saying). I'm 31. Guess what? The deficit grew. We suffered for no reason at all.
"Austerity in the 2010s" never happened. Instead of austerity, public spending in Greece grew from 53% of GDP on 2010 to 60.2% in 2020.
Another day,another crap disaster
Increase productivity?…na
How about releasing most restrictions on small businesses?
It'll create a lot of productivity and thus will allow for higher taxes, states won't have to pay so much on social programs because people will have their own resources to get, most of the times, better services which will lead to decreased spending.
Add a bit more hierarchical free economics (e.i. right wing liberalism) and things will get better faster.
State debt is not that much of a problem, no austerity measures needed
What a life to be deluded
Yes, it is a big problem
Debt! Debt! Debt! Debt!
I know Norway isn't in the EU but you could ask them for their spare pocket money they carry around in a money clip to help out - that'd solve the entire crisis
Countries like Norway are the ones that leeched us because of the energy prices. Norway expects us to help them when Russia attacks them, but they didn't even help Europe in the energy crisis
You know the US is in a horrendous debt situation right
"Acquired rights" is the real issue at play.
It's astonishing how quickly TLDR's accusation of "Laundering Russian money" has managed to eclipse Cyprus' commendable economic discipline in FY24.
This overlooks the stringent EU-wide sanctions prohibiting any involvement with Russian funds. Such a statement seems unfairly dismissive of Cyprus' efforts.
The European Union is slow to react to anything one example how long it takes them to negotiate a trade agreement with any other country in the world😮
No doubt, trade negotiations are easy, that is why Global Britain is striking deals everywhere and killing it. That is obviously a lie, trade negotiations are the most contencious diplomatic issue that exist with exception of Territorial claims, it is not easy for any country, it requires mutual compromise, if you do a deal with Canada you have to adjust internal laws accordingly that is not just an intra EU thing, you have to do it for all trade relations.
It's funny how the UK negotiate so many trade agreements in such a short period of time and and it's economy is outperforming Germany France and Italy's 😊🎉
It wasn’t mentioned, why is Ireland the exception? That is, why does Ireland have a budget surplus?
Because it is a tax haven for corporations and last few years the tax receipts were huge. It's what's called a windfall tax, which is basically a one off payment
Strong economic performance boosted by corporation tax receipts, as well as two very capable finance ministers. Last Irish budget also included the creation of a sovereign wealth fund similar to Norway's, storing billions in corporation tax and placing statutory restrictions on accessing it.
There is a fully untapped market for an armed populus. It would grow the economy and improve the national defense status whilst 90% of the cost will be consumers spending to purchase arms.
Why nobody's looking into rich people's pockets? There's the money countries need to finance and invest on public and private spending.
Idk about other countries but austerity worked wonder here in Portugal. Of course it helps that we are usually ruled by the corrupt socialists and during the crisis we elected the also corrupt but not as much social democrats who are also more fiscally responsible (the socialists being populists spend a LOT on things the people like but that we don't have enough money for)
Green transition is unsustainable
no if you keep nuclear running if germany kept their working nuclear reactor on they would have 100 clean energy but they choose to follow stupid greens ideas
Actually that's false, clean energy these days is cheaper than fossil fueled energy. What's unsustainable is the disastrous "green policies" that some countries have done that ended up doing the opposite effect.
@@diogorodrigues747 if it is cheaper why do developing nations install fossil fuel plants rather than solar even if they have better natural conditions?
@@TTTT-sj3vz Because corruption and lobbies. Also most of those countries aren't democratic, there is neither a discussion about what is being done nor a control of what is done. By the way, that generalization of developing nations is also wrong - South American nations depend a lot on renewable sources of energy like hydro, for example.
The thing is that, in Europe, countries that have a bigger production of green energy (nuclear, solar, hydro, wind, etc.) have much cheaper energy than the countries powered by coal or natural gas. Just compare the energy prices of Norway or France with the ones of Germany or Italy. And there are even more striking examples to compare.
@@diogorodrigues747 there is nothing cheaper than nuclear, gas and coal. Europe thrived on it, now that cheap russian gas and oil are tight we're seeing the effects. infrastructure to get green energy to totally replace fossil fuel it's just not doable
So let me summarize what you said : WE ARE FUCKED
Nice period of time to live in, the weather burn literelly the economy is burning literelly and the geopolitical is chill until gonna start to burn literelly. Nice anything that i missed ?
Maybe i overlooked it in your video but there is also the thing with EU deficit rules, that there is no real scientific evidence for the numbers and rates given. For example why 3 percent for new debt per year is okay and 3.5 percent are not or that public should not be higher than 60% of total gdp and not 90%. Don't get me wrong, debt-rules are useful and important but following them stoically can cause problems like crippling public investment resulting into crumbling infrastructure, schools, etc. which I would call "structural" or "technical" debt
You have to put a line somewhere. You are not fined for having more than 60%, but you have to show a path to that 60%, there are very few EU countries below the 60% threshold. The Maastricht Criteria is more complexo involving primary surpluses, Budget deficits and Structural deficits that measures future commitments.
Increase taxation, lower social spending and end the stupid green new deal and you'll see how most countries will start running surpluses.
the video is twitching?
Is it impossible for countries to spend less than they earn? This seems like a impossible to solve problem (world wide).
Edit: TLDR often talks about austerity in Europe, but has there been a single country with a least 5-10 years straight of earning more than they spend? Or is “austerity” simply running on less annual deficit?
Yes, Germany
It doesn't work this way for countries, for example is true that Italy is running a massive deficit but it's also true that it's economy grew and a lot has to do with the deficit.
So if you look debt to gdp the debt actually decreased as a percentage of gdp.... Also the real big problem is high interest rates if Italy could borrow at the same rate of Germany the situation would be completely different.
Depends on what you mean by spending less than they earn. There are many examples of countries "paying off" debt and getting to a lower debt to gdp ratio over time. Having zero debt as a country would probably not be desirable, there was an American president that actually paid off all the national debt to pretty bad results. Debt isn't always a bad thing, sometimes it's really good - lots of things would be impossible without it. But when servicing the debt becomes too expensive, that's when it gets bad.
It is possible, like Norway. It's not impossible to solve, it's just that people confuse self-interest with rights and as a result the government cannot cut spending or raise taxes sufficiently. Old people would need to accept a lower standard of living in retirement, young people would need to sacrifice more to pay for their education, the sick would need to accept more of a personal economic hit when they get sick, and everyone would need to accept a drop in their standard of living in order to raise more children. In such a series of cultures, the only exceptions are really just countries which sit on a pile of money like Norway or are able to siphon money off in a globally unsustainable way like tax havens. People will need to stop being so self-righteous about these rights because what they really are is a sense of entitlement, and as a result just maybe they'll stop treating an election as picking the guy who tells you the stuff you want to hear most, because what you end up having is both a government which has no room to make cuts and a political class that is incapable of running anything sustainably.
Agree. Even the Swiss are struggling to keep their budget in surplus. The Danes won't be having a surplus if it weren't for Novo Nordisk.
I may be a total dumbass in economics but... default on debt ? I mean... it would give more money for the budget, while reducing the risks of economic problems, no ? Sure, it can create some recessions, but there is already one, I don't see how it is so impossible to do. But again, I'm an absolute idiot in economy.
if you default once that goes on your track record and you'll be dealing with higher interest rates for the next 60 - 90 years. As people will demand a higher return. Europe and US have lower interest rates on their debt vs other countries with similair debt burdens. Russia defaulting in the 90s still haunts it till this day it had a 8 percent till 2022 interest rate on debt even though it had no debt.
What the heck are they all spending their funds on?? Baguettes???
Imported unemployables?
Mixed messages. I’ve just watched news at DW saying that EU economy is out of recession and growing as Germany is recovering.
same
Running defecits is good for growth.
@@cow_tools_deficits always destroys the economy on the long term, by debt or inflation, its what happens in venezuela and argentina
@@yoroshikuonegaishimasu8649 Many of the world's growing economies have run deficits most of the time.
Denmark way too go
This lovely lady is a very good anchor. Calm and clear. She has all the potential to be a pro. A pleasure to listen to.
The EU hasn't even begun to realize the depth of their financial problems. Germany and Italy are demographically collapsing. Germany is going to take half of Europe with them. Germany has lost its cheap Russian energy which supported Germany's whole economic model. Losing their gas also cost them the previously huge German chemical sector. Just one result is the loss of fertilizers, which is critical. But the whole world is going to have problem with that soon. Russia's agricultural sector only and finally became viable with western technology and that's gone. These warm winters we've had belay the true problem. You guys really need to look at food supply particularly with the lost Ukrainian supply's and soon Russia's. After the US these two were the major food suppliers to the middle east and Africa.
On top of that the Russians cannot maintain their oil supplies and equipment. The western experts have left. If the oil becomes too expensive or supplies threatened the US President has automatic authority to close all foreign sales of America's vast oil & gas reserves to others. Venezuela has destroyed its supplies, so we are looking at, at least a third of the world energy supplies disappearing.
The middle east will then begin to blackmail (charge a fortune) to supply many parts of the world and sadly bidding wars are expected. You can work out the economic disasters yourselves.
The US is desperately trying to forestall this even unto asking the Ukrainians to not hit Russian oil targets. The US, despite their major differences is even offering Venezuela help to fix their broken oil fields. Ya, it's that bad.
Food and Energy shortages along with climate disasters that will become common.
Not everyone's going to make it.
P.S please tell your countrymen to get on with those untapped North Sea fields asap. Britain will desperately need them themselves. Norway and Britain may even save Europe.
Or not.
G/L
That's what we get for following America like trained poodles.
Well if austerity comes back to Europe again it can kiss good bye to growth for another decade good luck
denmark paid of it's debt in 20010 or something like that and then made more debt again
Oh it did it 18000 years in the future? Cool!
@@Xydorf That's how good they are, damn 😂
I REALLY wish TLDR would learn to use EU and European properly - these are not interchangeable descriptors and your continual lack of accuracy is irritating.
Well, at least this time Spain isn't at the very bottom. Still not approved, but close. It's better than nothing.
Thank the US and Von Der Layen for this crisis!!!!!😢
The solution is obvious. We, the Greeks, owe a debt to our neighbors for showing us the way and the benefits of austerity. Thank you for helping us reform. Now, let us help you get rid of your irresponsible and profligate ways. Least we could do. AUSTERITY! AUSTERITY! AUSTERITY!