One of these thinkers is Soeren Kierkegaard. And he said: “Life can only be understood backwards but it must be lived forwards”. Of course, today I am not going to philosophise about life because, unfortunately, Europe still faces some economic problems. Nevertheless, I will apply Kierkegaard’s principle to the subject of today’s speech: the European sovereign debt crisis.
Rising cost of living had made it compelling for the Government to introduce what is today known as the annual cost of living compensation. Inflation had turned out to be a serious policy concern. In today’s free market context, one would have ordinarily expected the cost bank credit to go up, meaning that interest rates would have had to be stepped up.