After this column's attempt to present an overview of the future developments of Europe (see EUROPE 10728), current events resume their authority. Here are a few comments on two subjects currently causing controversy.
Crucial monitoring of the financial world. My first subject concerns the responsibilities of the banking system in Spain - on the sidelines of the official decisions on European support to a number of Spanish banks (on which EUROPE reported yesterday). Let me deplore - once again - the mentality and behaviour of the financial world which is made worse - in the specific area concerning us - by national legislation that guarantees excessive protection. The current situation has aroused dramatic reactions. I am talking about the fact that Spanish banks have evicted nearly 400,000 families from housing that had not been fully paid off. Some mortgage borrowers have thrown themselves from the window. Two of them are dead. Spanish sources of information have reported that an official organism (CGPJ - the General Council of Judicial Power) criticised the “bad practices of banks” that are responsible for a “general extension of mortgages, without measuring the real creditworthiness of the borrower”. The CGPJ proposed measures to avoid the social exclusion of the families concerned. It suggested operating a distinction between the borrowers who bought an asset with the aim of speculating, and “borrowers of good faith” who bought their home in order to live in it. Several measures have been suggested and the Spanish government is now at work to correct the legislation. At the current time in Spain, the repossession of housing that has lost value does not remove the debt, and the bank continues to demand the difference in relation to the original purchase price. Lawyers criticise this situation, judging that the banks responsible for “risky financial operations” also have their share of responsibility and account needs to be taken of this. The problem has been sent to the Court of Justice of the European Union, which has been asked to assess if Spanish law constitutes sufficient protection against abusive clauses.
The Spanish association of banks has gone some way towards helping by announcing a freeze on repossessions in the most serious cases. The political world - majority and opposition united - has started consultations, and a support body for those whose housing has been repossessed has called for the repossession to be considered as sufficient for settling the debt. The Spanish press has promoted a great feeling of distrust towards banks - which have often been saved by public bailouts. It is obvious that the banking world is not fully responsible for these affairs, which in reality concern only a minority. Nonetheless the amounts at stake are considerable and yesterday's EUROPE reported that the European support required would be between €35 billion and €40 billion.
This conclusion to all this is that monitoring of the financial world remains an incontrovertible requirement.
Enthusiasm or mistrust for shale gas? Another subject causing great controversy is shale gas. Information coming from the United States has turned the energy world upside down. We have been invaded by analyses announcing that the Americans want to achieve - as quickly as possible - both energy autonomy (oil imports would be finished with) and a radical decrease in the national cost of energy.
This is a revolution to which Europe can obviously not remain indifferent. The problem is that there are two conflicting theories. Some think that Europe will benefit from similar advantages to those on the other side of the Atlantic, while others think that we can expect nothing.
In the view of Michel Rocard (whose role played in France and Europe will be well remembered) our continent - and France in particular - “are blessed by the Gods” thanks to shale gas. He has acknowledged that, “being very pro-environment”, he was hesitant at first, but that recent technological developments have convinced him - for Europe, France will be for shale gas what Qatar is for oil. The scientist Claude Allègre shares his opinion.
On the other hand, in the view of Corinne Lepage (ALDE, France) the current campaign is not serious. Shale gas is spoken about as if it is an open opportunity to boost economic growth, but those who support its launch forecast its exploitation for the year 2020 - which obviously would not have any short term effect on economic recovery. At the same time, in the most favourable case, this gas would only supply a small percentage of our needs. Even in the United States, we are witnessing a “propaganda campaign” based on very little at all, involving technology that will be ruinous for the air and sea. The only objective of those who support this form of energy is to obtain a licence for exploration which would bring rapid gains for the beneficiaries, even if exploitation should never come about.
We obviously have nothing that enables us to show who is right or wrong. This is only a call for clarity - so that the EU might take the appropriate decisions. (FR/transl.fl)