The European Perspective
German Social Contract Redefined?
Germany’s Social Democrats (SPD) are pushing to overhaul the financing of the country’s health and long-term care systems, a move that would fundamentally alter the social contract. The party executive has proposed that contributions be levied on all forms of income, including capital gains, rental, and lease income—not just wages and salaries (ZDF). This represents a significant pivot, extending the funding burden for the welfare state far beyond the traditional employee-employer contribution model. Party chief Bärbel Bas framed the initiative as a way to “make financing more just.” From my perspective, this widens the state’s reach into private wealth generation under the guise of fairness, potentially disincentivizing investment and penalizing asset accumulation in a country already facing economic headwinds. The core question is whether this expands social solidarity or simply the tax base.
Italy’s Referendum Gambit
The battle lines over Italy’s judicial culture are hardening ahead of the March 22-23 constitutional referendum. The core of the government-backed reform is the separation of career paths for judges and prosecutors, a move proponents claim will increase impartiality (ANSA). The opposition, however, sees a power grab. Democratic Party leader Elly Schlein is now mobilizing for a voter turnout of over 50%, aiming to lend decisive political weight to a potential “No” vote (ANSA). This drive for a high quorum underscores the strategy to turn the technical vote into a broader plebiscite on the Meloni government’s agenda. The high stakes reflect a deep-seated cultural clash over the independence of the judiciary and the limits of executive power.
Crypto-Crime’s New Face in France
The volatile culture of cryptocurrency is intersecting with violent organised crime, forcing a state response. French authorities have arrested six suspects, including a child, in connection with the kidnapping of a magistrate and her mother. The victims were held for approximately 30 hours in a plot to extort a ransom in cryptocurrency (The Guardian). This case is not an isolated incident but part of a disturbing trend targeting individuals linked to digital asset wealth. While innovation in finance is a hallmark of a free market, this development highlights a severe negative externality: the creation of a new, hard-to-trace asset class for criminals. It forces a difficult conversation about balancing financial freedom with the fundamental right to individual security.
Catch the next Gist for the continent’s moving pieces.
|
Leave a Reply