- Need for budget cuts in Germany substantial
- Budget consolidation should avoid tax hikes, come from spending cuts
- Fiscal decisions in Spain, Portugal and Greece in right direction but are just the first steps
- Higher debt levels tend to require higher interest rates to keep inflation anchored
- Germany will need to cut more, should aim for 3% in 2012; cut from 2011 budget year
- Financial crisis has hit German potential growth
- Permanent aid mechanisms for states should be rejected, calls for state insolvency regime again
Weber remains opposed to bailing out EU states and says that high debt will lead to higher rates (well some places at least. So far the US and Germany have seen rates plunge despite record debts…)