When the next major fiscal crisis hits, Europe’s credit-challenged governments will pull down the banks with them. A crisis bigger than the one 15 years ago can no longer be ruled out.
Slovakia faces the same budget dilemma as Germany. Whether Prime Minister Fico will match Chancellor Merz’s bold move to announce an end to the welfare state remains to be seen.
The U.S. president is tackling an issue the nation has been kicking down the road since the end of the gold standard in 1971: the gaping chasm of fiscal disaster and trade deficits.
