Alemania y los frugales rechazan de plano la propuesta española para el presupuesto europeo

A quarter-century later, the resounding call for "austerity expanding" echoes loudly in Brussels when discussing public finances. Germany, which championed this approach during the Great Recession, has not undertaken any reforms in the past two decades and finds itself amidst a model crisis. Germany underinvested, enshrined a debt ceiling in its constitution, and fixated on trade surpluses for years with a blend of ordoliberalism and neo-protectionism that underpins much of its current predicament.

Now, Germany is back to its ways: Christian Democratic Chancellor Friedrich Merz, popular at home, spearheads the vehement rebuttal to Spain's proposals for a more ambitious European budget. Merz delivers a firm and resounding "no," reminiscent of Angela Merkel's stance during the Great Crisis, to the idea of a 2028-2034 budget with an extra margin for spending on priorities (defense and competitiveness) if vice-president Carlos Cuerpo's proposal to restructure interest payments on Next Generation Funds succeeds.

This miracle of bread and fish would provide a cushion of 70 billion euros to dodge further contributions from partners and sidestep unresolvable debates over own resources. "In a more dangerous and uncertain world, a strong Europe must be ready to make bold decisions," Germany begins its response to Spain's proposal. Germans interpret "bold decisions" as budget cuts.