Schröder's New Europe

The stability and growth pact was Germany's price for giving up the sacred deutsche mark in favor of the euro. No way would the country allow those profligate Italians and other high rollers to debase the new common currency by spending more than they could afford and running high deficits that would ignite inflation. So every member of the monetary union had to don a whalebone corset "Made in Germany." Above all, nobody could generate a deficit higher than 3% of GDP. Or else.

"Or else" meant, first, an official warning from the E.U. Commission: "Achtung, you are getting too...

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