The concept of the “Swabian housewife” is once again being hailed as a model of frugality and prudent budgeting that governments should follow. This approach was famously endorsed by former German Chancellor Angela Merkel, and now France and Italy are under pressure to make significant spending cuts.
France is considering cutting more than €20 billion ($21 billion) in spending next year as its deficit continues to rise, and opposition politicians raise concerns about a potential debt crisis similar to what Greece faced. Italy, too, is facing budgetary challenges due to the large subsidies it has been providing during the pandemic, and is preparing for difficult fiscal decisions ahead.
The International Monetary Fund has expressed concern over the rising debt levels in both countries, with former Italian Prime Minister Mario Monti criticizing the lack of awareness and willingness to address the debt problem. It appears that the time has come for tough choices and economic discipline to tackle the financial challenges facing these European nations.