Brussels, 07/03/2013 (Agence Europe) - Austerity in times of crisis does not solve the public finance problem, is socially unfair and causes the growth of extremist politics. This is the view put forward by the Social Democrats of the social and economic situation in Europe, seen with the recent collapse of the Bulgarian government and the outcome of the Italian general elections. But the moderate left asks how the ideological tide can be turned so that they can make electoral gains from the crisis.
“There is an alternative to the present policy. Extreme austerity not acceptable. Economically, socially and politically it's the wrong way”, said the leader of the S&D party at the European Parliament, Hannes Swoboda of Austria, on Thursday 7 March at a conference criticising the excessive austerity measures being applied across Europe. Yes, budget consolidation is needed, but the problem is the “speed” at which it is introduced, he explained. “The accusation that we're against reforms is wrong. Reforms to make states more responsible, not to destroy the welfare state. Let's have an EU strategy against austerity.”
The president of the scientific council of the European Foundation for Progressive Studies (FEEP), Bruno Liebhaberg, regretted that “Europe (is) ever more associated with austerity”, criticising the European Commission for its “autistic behaviour”.
In the same vein, French Economy Minister Pierre Moscovici warned of the “risk of the crisis leading to a rejection of Europe” because citizens in difficulty see Europe more as “something that aggravates” their situation. Reiterating the French position calling for integration and solidarity in Europe, he listed priorities for boosting economic and monetary union: - creating a special budget capacity for the eurozone, separate from the EU budget, with its own sources of finance that can be used to pay job seekers; - a process leading in the end to the pooling of debt; - reinforcing democratic control with “a body or group” at the European Parliament responsible for looking at issues concerning the eurozone; - and creating the job of a “minister” to guide the eurozone. Moscovici said it would not be possible to ask citizens for greater integration by modifying the treaties if the governments of Europe are unable to offer them positive prospects for the future. (MB/transl.fl)