Economic Downturn – what now?

After having spend and lend billions for the health and stability of the banking sector, Europe now has to decide, where the money has to come from.

Germany has with its Liberal-Conservative government made clear, that taxes should not be raised. Instead governmental spendings are being decreased. Members of the Christian Democratic Union (CDU) want higher taxes for the ones, making the best earnings – this can’t be accomplished with the liberals from Liberal Democrats (FDP). Will the result be social insecurity and communication problems between CDU and FDP? Angela Merkel now has to make clear, that FDP and CDU have to rule together. Therefore teamwork and political unity has to be of top priority.

Spain, Greece and Portugal are also saving and cutting their budget.

Europe should not save money at the wrong places. This would only tricker an economic depression. Who will buy expensive cars if taxes are being raised? Who will buy food in the supermarked, when the ones making the lowest earnings are suffering the greatest losses? Capitalism is going through a hard times – panic would kill it.