quinta-feira, 28 de novembro de 2024

 


Brussels Playbook

By SARAH WHEATON

with ZOYA SHEFTALOVICH

https://www.politico.eu/newsletter/brussels-playbook/le-pen-nightmare-before-christmas/

 

DRIVING THE DAY: LE PEN AND YOUR POCKETBOOK 

EUROZONE CRISIS FOR CHRISTMAS? National Rally leader Marine Le Pen could have the fate of the European economy in her hands. She and her far-right party are weighing whether to vote against French Prime Minister Michel Barnier’s budget. That would not only pull the plug on his fragile coalition government, but also terrify financial markets and send shockwaves around Europe.

 

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French financial twist: Years of lavish spending have brought France’s deficit to more than 6 percent of the entire economy, twice as much as permitted by EU rules. Barnier’s big task is to rein that in — and few like his plan to boost energy taxes and delay some public benefits. “If the budget remains as it is, we’ll vote for no confidence,” Le Pen said after meeting Barnier for over an hour Monday.

 

You thought Greece was bad? A decade ago, huge public debt in Greece almost toppled the single-currency eurozone. It exposed how crises couldn’t be contained in one country as the economies of Portugal, Ireland and Spain teetered, and big beasts like France and Italy felt the heat, too. This time, France is the one with the debt crisis, and Germany — once the stabilizing force — is facing its own political and economic turmoil.

 

Side note: Guess who is the latest proponent of Germany relaxing its famed debt brake: One Angela Merkel, if you can believe it.

 

Dire warning: The European Central Bank said last week that the bloc could be on the brink of a new eurozone debt crisis because of low growth and policy uncertainty.

 

Nightmare before Christmas: The moment of truth will come right before Christmas, when Barnier will have to use a constitutional trick to pass his budget. The gambit will allow him to pass a text without a parliamentary vote, but also expose him to a no-confidence motion that could cost him his job.

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