The euro's main enemy. No further proof was needed: the major enemy against which single currency Europe must do battle is the world of finance, and, in particular its “financial speculation” strand. Confirmation of this came, bang on time and inexorably, as soon as the occasion presented itself: the announcement of support measures for the Spanish sector. As the money will be targeted specifically at the banks, rather than at the economy as a whole through central government, speculation's response was immediate: interest rates did not fall by a single cent, despite the scale of European financial commitment.
Yet the operation had been prepared by endless analyses and precautions: secret meetings, video conferences, a considerable increase in aid money, consideration of ways to allow the IMF to remain on the sidelines. At the same time, European lawyers pored over text after text to be sure that no amendment of the treaties (which would have taken years) would be needed. All this preparatory work proved vain in the face of the greed of the world of speculation which afterwards immediately cast its regard on Italy, once again swelling the interest rate for its treasury bonds, to the extent that financial experts themselves were heard to comment: “The markets are going over the score; the situation in Rome is far less serious than in Madrid.” They are so brazen these enemies which have to be fought.
Over dramatisation? It is in part understandable that the media, always on the look-out for sensation and attention-grabbing headlines, highlight the most spectacular and resounding aspects of the situation. We must not lose sight of the fact that, in the face of this pressure - in part artificially created and certainly exceeding reality - the euro area is continuing to furnish its colossal effort to give itself the instruments that will allow it to manage its currency effectively and efficiently. The legislative action is constant, with the inevitable differences of opinion between political forces. Our newsletter regularly reports on them.
It is, in my view, clear that simply ignoring the rules of the single currency and limitlessly financing the member states which do not abide by them, smacks of populism. It will, however, not bring any positive results. At the same time, I believe that the efforts to bring about a dual approach of budgetary discipline and economic recovery (a difficult exercise which, fortunately, has been accepted in principle by all the Community institutions and all the governments of the eurozone) must not mean that we lose sight of other points. The patient and, whatever might be said, generally positive and constructive action within the eurozone must be accompanied by denunciation of the conduct of those who, in fact, are acting against its stability.
Financial centres of London and New York against the euro. I feel it will help to highlight a specific case. The financial centres of New York and London, far from supporting the efforts of the euro authorities, are doing exactly the opposite. They are in practice, the euro's worst enemies. It would be ingenuous to argue that President Barack Obama or Prime Minister David Cameron are to blame. They are standing up for the interests of their countries, which is perfectly right and proper. It must not be forgotten, however, that, in finance, the interests they are backing conflict with those of the euro.
Of course, in general terms, cooperation with the United States is crucial for the EU and must be continued; preparation is in train. The United Kingdom, however, is a member of the EU, it sits as part of its institutions and often plays a useful and positive role (even though the call for a referendum on continued EU membership would appear to be growing). Be that as it may, in financial management, US and UK interests cannot be reconciled with those of the euro area. In point of fact, the London and New York financial centres represent the main obstacle to the euro on the markets.
It is true that, on the political level, Obama is keenly concerned by the euro's difficulties, speaking personally to European leaders. In general terms, his conduct is always friendly and pleasant. However, the attitude of the New York financial market and, even more, that of the London market facilitate and encourage speculation against the single currency. This is a fact well-known to experts (and, of course, speculators) but one of which the media do not inform the general public. (FR/transl.rt)