Europe

The guffaws of Angela and Nicolas
by Antonio Cardella

The measures taken to "save" the European economy, seem to prevail some myths that are struggling to set. It shows both the number and the dramatics of the facade can not cover. Let us examine.

 

Sure, you see those two figures move with little grace on stage in Brussels on the occasion of yet another meeting of European Heads of State, on October 22 last year, seemed to see a silent film of the early twentieth century, where the characters expressed in the body , often awkwardly, that could not communicate with words. They went, Merkel and Sarkozy, back and forth on the stage, stopping only to shake hands warmly with the idiotic smile printed on faces contorted. Then returning on the monumental music stands separated, and they continued to play the role of saviors of the European homeland. Of course, the answers they gave to journalists at the press conference, it was clear that would not be able to save anything and that even among them there was no unity of purpose. In short, this Franco-German directorate, lacking any legitimacy and, above all, empty of content, had the honor of witnessing only a reality, clumsily concealed, a Europe in disarray, stranded among the rocks of national self-interest and institutions that in an attempt to stem the collapse of the system, effortlessly transcend their statutory duties (not in the right of the ECB, to give just one example, purchase securities of sovereign member countries) and extended foot to intervene in national policies, not only with recommendations general, functional balance of the system, but by requiring the intervention methods, absolutely indifferent to the economic and social consequences that some routes may have in implementing frameworks which are already destabilized by the crisis. The measures that are taken in the near future and that pretend to be saving, some myths that seem to prevail struggle to set
The first myth that you can not disprove that of a balanced budget by individual states. Of course, in times of normalcy, hope that each national context does not live above their means is a virtuous cycle which must be maintained. But the drama that is gripping the entire Western world is that in all countries of the Old and New Continent deficits have already produced and have stifled the real economy. The economic policies were, and are indifferent to the correctness of the relationship between production and actual (non-violently, and induced) needs of so-called end users, who are the communities that live in the realm of the capitalist system. On the one hand the myth of the production that reproduces to infinity, self-referential, the constant search for increasing profits and the systematic exploitation of labor, on the other, the growing and now pre-eminent importance of virtual wealth, that wealth derived from money reproduces itself, together with the instrument and the outcome of that speculation has caused the financial crisis in which we find ourselves and from which no one knows yet how to get out.

Angela Merkel and Nicolas Sarkozy

growing malaise

In this context, the reference to a balanced budget is a public room shouting at the moon, indeed, an imperative that is likely to hasten the death of the patient. And we explain. One in which the western world is moving, is always a context with broader recessionary signals. This means that the monetarist policies implemented so far have weakened consumption, private savings have eroded significantly and, therefore, we have developed the ability to consolidate the assets and equity investments for the future. The collapse of entire sectors (housing, food, services, etc..) Is significant from a company that does not grow, in fact, is impoverished. How, then, to ask these men and these women every day that show the growing discomfort of their daily existence, how do you expect them to heal you svenino further debts which for the most part are innocent ? But, then, all the economic theories on one thing has always been in agreement: in preaching that the driving force for development is always the high level of private consumption. Without this assumption it is impossible any growth and decline is evident with unsold stock which accumulates deposits of the productive apparatus, with paralysis of industrial production and investment ban in order to enrich the social fabric of goods and services. Just cast an eye on what happens in Italy, with the collapse of public services and the artistic, archaeological and monumental pieces lost. The second myth is the presumption - true or not - that, to restart the engine of growth, need to recapitalize the international banking system. To the moloch of American and European banking system were sacrificed billions and billions of public money. True, the portfolios of major European banks (the speech in America is somewhat different) of sovereign bonds are swollen, accumulated during the periods, remote and recent, in which it was believed that it was pure gold, more manageable without major worries . Only that speculation and wrong economic policies, the easy management of reserves by the banks themselves are hard to fill voids created by mere measures to recapitalize. Strengthen the balance sheet of a bank is very different to correct its behavior, often far from virtuous, and this is achieved by strictly controlling budgets, especially to highlight and eliminate the many skeletons in their closets that still exist. Continue to allow banks to hide speculative activities and casual disbursements of loans not properly secured, tampering with chapters phony budgets, means for controlling bodies (central banks) to be accomplices of the defects of the system.

Ballets awkward and unnatural

But, if as alleged, the allocation of public money to banks not only serves to reconstitute the balance sheet, but to provide liquidity to finance a production system asphyxiated, then the objections are simple and understandable. In a situation like ours where consumption does not take off and businesses are suffering, should be a credit to long-term rates and moderate production in order to make access, a condition which would be costly and risky for any private financial company. Then other channels should be and how to support the production system with public money to be disbursed without excessive intermediation. The opening credits guaranteed by the state at subsidized rates and strictly aimed at industrial and commercial initiatives credible, non-speculative and, above all and mainly aimed at the domestic market (when I say I refer to a Member State which, despite the flaws in the original challenged daily by anarchists, have a proper relationship with its citizens). In this way, and restoring the social value of work, you could increase the level of employment and, with the consequent increase in household incomes, the tendency to reactivate consumption. The third myth is that the European Union as a factor in economic and political stability. Judging from what is before our eyes, to speak of the grotesque union already knows: it is divided across 27 countries, with economies and diverse political and social systems, some bound by a single currency without an overall target market and without a government that governs policies. The reckless urgency to expand enormously the circle of the components has ended up making the whole system unmanageable. The result is that, after the bankruptcy actual evidence of aggregation, the centrifugal forces are increasing, pressures that are less evident in official statements than they are in public opinion, especially in these lean times in which even people from far away and unaware 'epicenter of the storm is calling for heavy sacrifices groped to rectify situations that are not in any way contributed to. But we must not go very far to measure the disaffection towards Europe. In the Republic in Berlin, three out of four citizens have no confidence in the European currency and only one in four trusts the European Union. As for the rescue of countries in crisis, one of every five people is ready to contribute. Not to mention the Germans what they think about the benefits that Germany gets in the remaining 34% think that the country would gain from leaving the Community. In assessing these simple figures, keep in mind that Germany is by far the strongest economy of the area and without his locomotive wagons Eurogroup would remain at the stake. To conclude. Of course, in this scenario Berlusconi's Italy plays the role it deserves: it is unreliable as a community of citizens more than as a political class. Abroad are amazed by our ability to withstand shocks without many a government that writes his dirty stuttering on a periodic column tragically farcical. Of course, not be quite right, but we, across the border, we are well represented by our television networks, and frankly we smile when we indignamo for the smiles that are ironic corollary constant whenever it comes to credit in international forums our credibility. It is clear that Merkel and Sarkozy, with their ballets obviously clumsy and unnatural, have little to smile about: their image as saviors of the country, put to the test, expired at the level of satirical cartoon. But it's always good to look at home before criticizing that of others