The “Swabian housewife” spirit of frugality and careful budgeting is once again being held up as a model for governments to follow. Angela Merkel, the former German Chancellor, famously praised this approach, and now France and Italy are feeling the pressure to make significant spending cuts.
In France, more than €20 billion ($21 billion) in spending cuts are being considered next year as the deficit continues to grow and opposition politicians raise concerns about a potential debt crisis similar to what Greece faced. Similarly, Italy is facing budgetary challenges due to the large subsidies it has been providing during the pandemic, and is preparing for difficult fiscal decisions ahead.
The International Monetary Fund has expressed alarm over the rising debt levels in both countries, with former Italian Prime Minister Mario Monti criticizing the lack of awareness and willingness to address the debt problem. It seems that the time has come for tough choices and economic discipline to address the financial challenges facing these European nations.