Comments by "Nigel Johnson" (@nigeljohnson9820) on "Merkel-Macron recovery fund: Divisions emerge over €500BN aid plan proposed by France and Germany" video.

This is more of a Macron Merkel plan. This is a federalist plan, and the start of federal taxes. This is shared debt channelled through the EU budget. France see it as the first step towards a federal Europe lead by the French and funded primarily by the Germans. For while the money will be raised via the markets, the resulting debt will be collectively shared by all member states of the EU. The French argument is that what is good for the EU is good for all member states, this has never been true. The French also believe that the debt can be funded by growth, rather than an increase in taxation. Given the exertential threats faced by the EU, such as those relating to climate change, this seems very unlikely. The prospect of paying off this debt through growth seems even less likely when it is considered in the context of the global economy, where all countries are taking massive debts to fund the effects of the covid 19 crisis and the planet's eco system is close to collapse due to over exploitation of diminishing natural resources. Looking for growth when the global economy is heading for a depression seems unrealistic. The federalists are just exploiting the covid crisis to further their own political agenda. It is easy to understand Macron's motives, but difficult to see what Merkel has to gain.
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