Browsing all articles tagged with spending
May
18

French President Urges Euro Zone Government

Francois Hollande, French President called on Thursday for an economic government for the euro zone with its own budget the right to borrow a harmonized tax system and a full time president.

At a 150 minute news discussion marking his first year in office a day following economic statistics showed France had fall into recession, the Socialist leader defended his record on economic reform and budget regulation and informed the French people they would have to work a bit longer for a complete pension in future.

Rebutting criticism that France has lost its leadership role in Europe as of its dwindling economic competitiveness, Hollande thought he wanted to create a fully-fledged political European Union within two years.

Hollande said it is my responsibility as the leader of a founder member of the European Union to pull Europe out of this torpor that has gripped it and to reduce people’s disappointment with it.

He accepted that he could face resistance from Germany, Europe’s dominant power, which opposes mutualising debt between member states. Berlin is also reluctant to give the euro zone its own secretariat for fear of deepening division in the EU, among the 17 members of the single currency and the 10 others.

Non-euro Britain’s government previously faces growing domestic pressure to hold a referendum on leaving the bloc.

Hollande stated he wanted Britain to stay in the EU but added, he can understand that others don’t want to join the single currency, however they cannot stop the euro zone from advancing.

Hollande said a future euro zone economic government would debate the main economic and political decisions to be taken by member states, harmonize welfare policies and national fiscal and launch a battle against tax fraud.

He proposed bringing forward planned EU spending to combat record youth unemployment, pushing for an EU-wide transition to renewable energy sources and envisaged a budget capacity that would be decided to the euro zone along with the gradual likelihood of raising debt.

Apr
3

A fiscal Cautions from two former budget chiefs

Two ex- budget chiefs who worked for presidents from opposing political parties stated on Monday that the government should decrease military spending, end decade-old income tax cuts and scale back Social Security payments to reduce the federal deficit.

David Stockman, who was a key architect of tax cutting policies and Republican Ronald Reagan’s budget director from 1981 to 1985, and Peter Orszag, budget director for Democratic President Barack Obama from January 2009 until July 2010, agreed that the US spends more on defense than is needed.

Both also stated that the country would be well served if wealthier citizens paid more taxes and took less significant benefits from the government in their old age.

Orszag said that the governments are right to use spending to stretch out the economic regulation to keep huge segments of population from losing their jobs, which itself can sourced long lasting problems.

The Great Deformation is the men spoke on the eve of the official publication of Stockman’s new book, the Corruption of Capitalism in America.

Stockman criticizes politicians of both parties, opening with Democrat Franklin Roosevelt in the 1930s and including his former boss Reagan as well as previous Republican President George W. Bush.

Stockman advises investors to sell their securities and hold cash as an alternative. He confess he does not believe Washington will adopt his advice.

Orszag stated Stockman was not correct to place so much blame for the budget deficit and weak economy on government policies. Changes from new technology and global trade have hurt employment and incomes.

Some $85 billion of comprehensive government spending cuts automatically took effect on March 1 following Congress and the White House failed to agree on federal budget decisions. The drain of money has placed pressure on the US Federal Reserve to keep interest rates low to prop up the economy.

Washington is having returning fiscal showdowns over how to slash the budget deficit and $16 trillion of national debt, which was build from years of spending on wars in Afghanistan and Iraq and stimulation for the US economy.