Interesting point about eurozone debt

So, this idea that Germany has benefitted from the euro and should thus chip something back in to help those who have borrowed.

You do see this idea around at times. The Italian trade deficit is the German trade surplus in reverse. There is one handy response to this:

The Germans should not accept responsibility for debts built up by Italians over decades, from long before the euro was established.

Quite: leave aside that trade deficits are not the same as govt ones and think about the actual stock of debt. Even if the euro has meant addition to that stock in recent years (and in the Italian example, not all that sure that it has. Except for the recession, I thought that Italy generally ran a primary budget surplus?) and think that the current stock of debt has been mounting since 1945: heck, might be since 1861 for all I know.

And why should current Germans pay for all of that?

2 comments on “Interesting point about eurozone debt

  1. Because they are beastly Huns who should still pay for starting two World Wars?

    I can’t believe this is being advanced seriously as a reason, but it seems it is.

  2. Because they are rich, see? They selfishly didn’t borrow huge sums for useless State spending, so have greedily hoarded all the money. Or something.

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