login
login
Image header Agence Europe
Europe Daily Bulletin No. 10823
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Prelude to overall recovery of European economic and political activity

Quick checklist. The spectacular revelations in the financial domain that were made around the Easter holidays have hustled public opinion so much that a quick reminder of a few key points and personal observations might be useful - at a time when recovery of Community activity is moving at full pace. Here it is.

It is very easy and convenient for some governments, or for some political forces, to attribute the mistakes or failures that are essentially national to the EU and its shortcomings.

The reduction of some national budget deficits - which are excessive and unjustified - comes particularly through improvement in domestic behaviour and through the respect of commitments taken on under the European framework. Anti-Community rhetoric has become an instrument of self-defence which is very often superficial.

A country's wastage or the abuses by its political class enriches the financial world and speculators to the detriment of most citizens and particularly to the detriment of future generations. A country that is too heavily in debt depends on its creditors and is subject to conditions imposed by speculation and by certain banks in order for it to receive financing - to the point of having to compromise its national identity.

The eurozone instruments enable member states in difficulty to be supported or financed - with long time periods in which to recover. Yet any country that does not respect the commitments it has taken on should not stay in the eurozone in the long term.

A country's exit from the eurozone seems to be fought hard by the banking world in particular. It therefore seems legitimate to suspect that the financing of eurozone countries in a difficult situation is good for the banks, which have very high interest rates. It is important not to fall into their trap.

It should never be forgotten that leaving the euro does not in the slightest mean leaving Europe. A member state that leaves the euro remains a member state of the EU and will benefit from support - possibly strengthened support - from the common policies.

A certain amount of flexibility. I consider that the accusations of selfishness levelled against Germany are unjustified with regard to the current European situation and the difficulties of most of the other countries of the EU. Alluding to Nazism is petty, and, when this is excessive, it's actually quite depraved. What country has not been through moments of making a mistake or being unjust in its history? Mrs Merkel seems reasonably understanding - she approves of a certain amount of flexibility in applying the rule to the maximum national deficit of 3%, and she supports financing by the Community budget (to which her country is the biggest contributor). It is true that Germany is benefitting from this as the top exporting country - but this is not a fault.

For his part, Mario Monti, the acting prime minister in the main member state with difficulties, is trying to get Italy to respect the crucial budgetary recovery, but with the option of leaving some large public investments out of the calculation of the national deficit. Mr Monti is asking for account to be taken of the inevitable time lag between the structural reforms and their effects on the ground. The national co-financing of projects supported by Community funds should not constitute an element of the deficit. These requests from Mr Monti are moving in the direction - which is today accepted by everyone - of inserting an element of economic growth into the European policy alongside the inevitable and salutary reduction of the deficits. It is quite clear that this principle is not a last minute discovery.

European miracle. Let me add several very recent remarks from Michel Serre, a member of the Académie française: “I am sufficiently well advanced in years to know that united Europe, without wars or barriers, is a miracle. Whatever the criticism that can be directed at the EU, it should not be forgotten that history teaches that wars are always set off by an economic crisis. Europe has been in an economic crisis for 20 years but there is no war. European unity is then, from this point of view, perfectly effective because the common crisis has not led to carnage as happened in previous crises” (our translation).

Let me add that carnage exists on Europe's doorstep! We just need to look around us to notice the cruel conflicts that are taking place. I understand that the impossibility of a conflict within the EU may not always be much consolation for those of its inhabitants who are suffering the often tragic and painful effects of the economic crisis, especially the young people who have never known intra-European wars - but Europe's older generation is very mindful of these wars of yesteryear and is grateful for today's unity. (FR/transl.fl)

 

Contents

A LOOK BEHIND THE NEWS
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
INSTITUTIONAL