Germany's Black Zero Rule Really Does Look Dead
It took Christine Lagarde’s dismal performance on Thursday to finally push the EU and Berlin into fiscal action. It’s about time.
No more Schwarze Null?
Photographer: picture alliance/picture allianceAt last the creaking wheels of the European Union are starting to turn in motion — its leaders scared, no doubt, by the violent market reaction to Thursday’s underwhelming performance by European Central Bank President Christine Lagarde.
The entire viability of the euro project was once again coming into question because of the single currency area’s fractured response to the coronavirus threat. The suspension on Friday of EU deficit limit rules allows the countries most in need to react appropriately. But Europe has been well behind the curve here. Italy has already been committing tens of billions of euros to offering much-needed relief to its economy and to people who are stuck at home, unable to work. At least there is an official recognition that this is a crisis; contingency plans are being ramped up accordingly.