Europe is at a crossroads and its survival may depend on the route taken. It is very clear that large numbers of ordinary folk have fallen out with the concept of ever closer integration, and with mass migration. Multinational companies are advocates of the EU, according to the analysis of focus-economics.com. This body paints a bright picture of vibrant colours for the immediate future of the Eurozone.
Since the crash of 2008 not a lot has changed for the poor. Unemployment remains persistently high at around 11% for the Eurozone as a whole. The only country doing well is Germany with the lowest unemployment rate in 25 years. www.focus-economics.com/germany
Therein lies a major problem and to compound it we have the arrival of significant numbers of migrants. The figures vary, according to Frontex the EU border agency 1.8m came to Europe in 2015 with an estimated further one (1) million illegal entrants. Significant numbers continue to arrive. It really doesn’t matter whether you think it is a good idea, the humanitarian thing to do, or not. The crucial point stems from the impact. And the impact has proven seriously negative for the poor.
Similar patterns are to be found throughout Europe. In Germany the altruism of Angela Merkel and her subsequent rise to fame has waned considerably. When the emotional high withers the harsh reality, the practical everyday environment comes to the fore. Germany was magnanimous but the rise of opposition has increased steadily. The AfD (Alternative for Deutschland) has been growing and estimates that it can now command roughly 25% to 30% of the electorate with an anti EU policy.
Meanwhile, a Spanish member of the EU parliament (MEP), Javier Lopez has written a piece on the ‘defense of democracy’. By democracy he means the maintenance of the existing order as he abhors the “bigoted populist movements”. Along social democratic lines he is calling for the reconstruction of the EU to incorporate a fiscal branch, harmonization of taxes, a minimum income throughout the Eurozone and better public services.
Of course all eyes are on Greece at this time and whether it can meet its debt repayment plan. There is little understanding from the ‘powers’ in Brussels of the political reality in Greece. The parties that once held sway, PASOK, centre left and New Democracy could look forward to 70% – 85% of the vote at elections.
www.theguardian.com/business/economics-blog/2017/feb/05/ (A good read.)
BBC Business News 2017/02/15
Poor Greece (literally as well as metaphorically) has suffered years of austerity. And while other nations get a boost from retail sales Greece doesn’t have that luxury. Instead it is under pressure to cut pensions again which would be the thirteenth (13th) time. Unlucky for some – no pun intended. Therefore the Greek debt problem is a headache and perhaps, that’s why the German newspaper Bild has suggested that the German government would welcome Greece leaving the EU.
www.marketwatch.com www.taieitimes.com/news/editorials/ (2017/02/06)
Another nightmare stirring in the background readying to wake the dead is Italy. This nightmare can truly disturb the sanity of the EU: dozing, dozing, dozing; alarm! The banks are described as “…an inexhaustible source of financial instability”. Unemployment hovers around 12%. It has the highest inflation rate (Feb: 2017) since 2013. Public debt continues to rise and there is no sign as yet of any economic recovery.
Interestingly, none of the major rating agencies: Standard & Poor, Moody or Finch is prepared to give the country a rating. The reasoning may be because the country’s debt stands at 132.6% of GDP the second largest in the EU. Bonds sold to keep Italy afloat are not being bought by private investors but by the ECB. Aggressively!!
. www.focus-economics.com/countries/italy www.times.com/2017/02/08/business/
France the second biggest economy of the Eurozone has many of its own problems. Unemployment is up above 10% again and tales of political corruption have been in the headlines for a number of years. Add migration and terrorist attacks and the government is under severe pressure.
Since Hollande came to power taxes have risen to an all-time high at 47.9%, the highest in Europe. The real indicator of the well-being of the country is summed up thus, “… no significant economic improvement over the past five years”.
www.ndtv.com/world-news/ citing an article by Reuters 2016/12/04.
Marine Le Pen seems the likely opponent of Macron. The National Front programme is to leave the euro and devalue. Or create bedlam along the way.
The chief European economist for Goldman Sachs Huw Pill suggests at best the EU will stumble along making small gains. However, he warns that the EU needs ‘institutional and structural’ changes to overcome the weaknesses of the block. www.goldmansachs.com
A further nail in the coffin comes from the economist.com (October 2016) and their assessment that there are “…deep flaws in the single currency’s design.” Flaws in the currency have been known for some time through the work of J Stiglitz and Paul Krugman both Nobel Prize winning economists.
Austria’s new chancellor Christian Kern has made it abundantly clear that he expects the Eurozone to make big changes. He at least recognises that the writing is on the wall unless the people’s wishes are given a hearing.
He is of the opinion that “Corruption is rampant in Europe” and that transparency should be a “…top priority at all levels of governance.” Frans Timmermans reputedly told the Civil Liberty Committee that he sees no point in releasing the document. Hmm, interesting!
There is a sweeping antagonism and a deep mistrust of the politicians and of the opaque bureaucracy they have installed. No one is accountable. No one takes responsibility for any wrong doing. No one admits to failure. Everything is fine in La La Land!
The most telling point comes from an 86 year old Frenchman Maurice Beauzac from Chartres during a street poll held by Reuters:
“We are living at a time when the word integrity is becoming meaningless to our politicians.”
This year is one of crucial elections in France, Germany and the Netherlands the outcome could seal the fate of the European project.
It may well be that they will carry on down that same road and continue with the policy of austerity. They may turn a blind eye to the exposé of corruption and continue their role as the proverbial ostrich.
Meanwhile, several notable commentators, Goldman Sachs, Mediobanca have called for serious institutional and structural change. The Economist magazine notes a weakness of the euro as have several leading economists. Many have commented on the sluggish performance of most of the economies of the EU and see few prospects in the near future.
The most recent set of stats from the German official statistical office Destatis paints a bright picture for Germany and the Eurozone. Germany it concludes has achieved 1.9% uplift in activity in 2016 making it the fastest growing of the top 20 nations, due to higher exports and the weak euro.
For the Eurozone it suggests the highest lift since 2011. Destatis also points to the French service sector as ‘booming’. However, this contrasts with France24.com when they highlighted that tourism, a major contributor to the French economy, had a steep decline and that Paris had seen a drop of 1.5m visitors alone.
Martin Baccardax, The Street 2017/02/23 reported in msn.com/news
Note the point by the New York Times: 50% of all new jobs since 2010 are temporary jobs in Europe. It’s a job but one without prospects and one that simply keeps the debt man (raptors) from the door.
Big business is screwing ordinary Joe now with part-time work and zero hour contracts. And will screw Joe later when Joe has to rely on a pittance of a pension from the government to survive.
Alternatively, people just fuel their own debt by taking out loans at exorbitant rates of interest and spend. Keeping up with the Jones’ is such fun – until the bubble bursts.
“…traffickers are increasingly bringing in vulnerable people for the sex trade and as slave labour.”
Such is the problem created by traffickers that Frontex recognises that they are a “…significant threat to the EU”.
And the sanctimonious speak to their best friends: – see no evil – hear no evil – speak no evil! Happy to smile for the cameras while playing politics with people’s lives!
Do some good join – Robin Hood!