[ARCHIVE] Make Your Move

Positive News from Europe -- Germans Balance the Budget

March 19, 2013

Germany’s ruling coalition is leading by example on budgets and deficit reduction.

The Germans are leading the way in Europe, and coincidentally showing the US that balanced budgets are possible. They have dubbed their plan as “growth friendly deficit reduction”, but the reality is they will have a balanced budget in 2014. Austerity and controlled spending are working wonders for the world’s fourth largest economy.

They will borrow $8.3 billion, but through contributions to the EU’s bailout fund (the European Stability Mechanism), it becomes a structurally balanced budget. They won’t borrow any money in 2015. It would seem that Ms. Merkel’s ruling coalition is leading by example. Their strength will be the guarantor for the EU, a fact which is consistent with our forecast of stability in the EU in the second half of 2013 and into 2014

About the Author

Alan Beaulieu Blog | President

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and 60 years of correct calls. In his keynotes, Alan delivers clear, comprehensive action plans and tools for capitalizing on business cycle fluctuations and outperforming your competition--whether the economy is moving up, down, or in a recession.

Since 1990, he has been consulting with companies throughout the US, Europe, and Asia on how to forecast, plan, and increase their profits based on business cycle trend analysis. Alan is also the Senior Economic Advisor to NAW, Contributing Editor for INDUSTRYWEEK, and the Chief Economist for HARDI.

Alan is co-author, along with his brother Brian, of the book MAKE YOUR MOVE, and has written numerous articles on economic analysis. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends.

Prior to joining ITR Economics, Alan was a principal in a steel fabrication company and also in a software development company.