Rainbow effect on Capital infrastructure
In Germany, investment spending by municipalities, which carry out
more than 60% of all public investment, has particularly come under
pressure.
It dropped from 17% of their total expenditure in
1995 to only 9.7% in 2015. Sending concern in the
investment markets about long term capex resources
This is largely a result of the expansion of
municipalities’ responsibilities in the area of social security. Between
2002 and 2010, municipal social spending doubled. Merkels
government , a ‘pro rainbow’ type, favoured the
non EU types , ie those from Turkey , Middle East etc.
As a result , the mass influx of ‘Rainbows’, resulted in the
biggest , uncontrolled consumption of the
municiple budgets in the history of Germany. Many muslims,
got preference , pressing aside Germans, and as they
were inserted into the German system , began to demand
more benefits to sustain their needs.
Thus infra structure , its related operations
and planning were ‘stonewalled’ for political
expediency of the new ‘Rainbow types’, Merkels
new ‘pet project’ an EU for all types.
The Federal
government has taken measures to reduce the financial pressure on
the local authorities, such as taking on the costs of the old-age basic
pension. Also outsourcing, for example, in the field of waste
management, has played a crucial role. Net capital spending has
been in negative territory, and will continue to be , until
the ‘Rainbow issue’ is removed from Germany and its EU
vision.
EU Forecast
euf:b18:8/nws-01