The different measures implemented in Europe in order to boost growth through increased monetary action, investment and structural reforms have replaced austerity as the new dominant dogma. While Angela Merkel is adapting to the new situation, Bundesbank president Jens Weidmann disagrees with more budget flexibility and a possible QE by the European Central Bank (ECB) in 2015.

In the past few days, Andrea Bonanni, Brussels correspondent for the Italian newspaper La Repubblica, published an article in which he announced that Angela Merkel and Germany had lost the long battle over austerity in Europe. (more…)