Spreads are so low in Germany

"Spreads are so low in Germany that if they were to do a fiscal stimulus... I don't think they would lose any credibility," he said. "I am talking about a short-term fiscal programme to boost economic growth." Countries that are undertaking structural reforms such as laying off staff in the civil service as part of measures to get their public finances under control should be allowed higher budget deficits than stipulated under the European Union rules for a short period of time, he argued. "There has to be a trade-off that if a country does structural reforms, you have to give them more fiscal flexibility," Roubini said. - in emergingmarkets.org