Europe’s plans for laxer spending rules shows German influence is waning

There is no dog in hot dog, a koala bear ain’t no bear, and let us not speak of urinal cakes. What of the EU’s “Stability and Growth Pact” (SGP)? The agreement limiting how much debt national governments can run up has achieved neither of its stated objectives: Europe endured a prolonged currency crisis and decades of economic torpor. Thus few bemoaned the pact’s suspension in 2020 as Europe splurged its way through the pandemic and now scrambles to offset soaring energy bills. Germany is now pushing for the old straitjacket to be reintroduced, but only a much looser arrangement looks likely. That hawks in Berlin are likely to be defied shows how much German influence has waned.