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The government was left with a €60bn hole in its spending plans after the constitutional court last November banned the use of off-budget financing vehicles to bypass the country’s debt brake. Habeck said this “has an immediate growth-crimping effect”
Self imposed austerity.
Yep, thanks to the “Christian” “Democrats”
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That’s not how money works. In fact Milei “achieved” first fiscal surplus since 2012 despite inflation of over 200%.
I would suggest reading “J is for Junk Economics” by Michael Hudson.
Historically, the key aspect of the deuda is that it is based on a foreign currency, the world trade currency controlled by the ruling empire. It was once the British pound. Since 1944 it has largely been the US dollar.
The United States can “print” dollars (and the Federal Reserve does so regularly), but Argentina cannot. The same is true of other countries in the Global South with large external debts denominated in foreign currencies.
There are only two ways for these nations to get dollars: exporting and borrowing.
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They are just not growing as fast as they want, they are not shrinking….
