Fulfilling our Own Rules


Juergen Donges: “The credibility of the economic policy is vital. Governments are always searching for the ‘baddie’: speculators, rating agencies… they don’t seem to realise that maybe they’re the ‘baddies’”

“The housing bubble in Spain wouldn’t have formed itself if real interest rates hadn’t been negative”

“The real problem is not public deficit, but States’ debt level, i.e., the public debt/GDP ratio. The ideal time to initiate fiscal consolidation programmes is when the crisis hits rock bottom and the recovery has started”

“Monetary policy must go back to orthodoxy. The 750 billion fund is but a firebreak; it has only bought us time but it hasn’t solved any problem. The Fund has de facto abolished the two basic principles of the Monetary Union: the non-rescuing clause of insolvent countries, and the prohibition that the European Central Bank finances any State’s debt”

“The Stability Pact is denatured. It must be strengthened, and the way to do this is depoliticising it and applying the sanctions that it clearly and firmly envisaged”

“In Spain you had your own version of the Stability Pact: a Budget Stability Law that worked for you and enabled you to access the euro. You made it in spite of the scepticism of many, even I. But then you abandoned it. You only have to go back to it.

“I am against creating a European economic Government. We Europeans don’t even share common economic principles. It should be enough if each country does what it should”