EU warns of sanctions against Germany

Well there is a bizzare headine if I ever saw one. Germany, one of the great economic engines of the gloabal, not to mention the Eurpoean economies is not vibrant enough for its neighbors. Germany has lost control over its currency and cannot use the same tight money policies for which the Bundesbank was so famed in pre-Euro decades, and so she adopts basic Keynesian strategies to encourage growth. Having lost the levers of monaterism (broadly) she is sanctioned for trying Keynes. Aparently Germany should be realizing that it should be extending its own recession by adopting a contractionary spending policy. Chancellor Gerhard Schröder is pushing for through structural reforms, and I would hope that the Christian Democrats (the center right party) find a Thatcherite, or Reaganite, reconsideration of the generous social programs. Such ideas have made the press in France. For years it had been assumed that without the set-back of the 70's (Germany mostly dodged that bullet) Germans never had any inclination to turn to a Thacherite reconsieration of creeping socialism. This may well be that reconsideration. I do wonder whether the Social Democrats (center left), leading a Red-Green coalition, can do this.