About the “left front” secretive deals

Until now, the socialists or its far-left allies have declined to reveal any details of their agreement. The socialists say it will only be known once the nominated government is overthrown (sometime in the next few weeks). Rumour has it that no comprehensive deal has been achieved (one that guarantees a stable four years government) and only one-off deals have been agreed.

Yesterday, it was rumoured that the socialists wil propose a “golden rule” according to which no wages or pensions cuts and income tax hikes will be made in the next four years. They expect that any eventual  budget deficit overshooting will be met with (an upwards) target revision.

It sure sounds like a solid basis for a successful partnership in the euro area.

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