ALLIANCE FO§ DEMOCRACY

Reforms for Disastrous Debt Needed Now

Halfway through the year, EU Commissioner László Andor gave a speech about the plight of the euro countries. The European Commission is therefore aware of the public deception on this matter but nothing has been done, and nothing has changed. There has been no opportunity for the indebted euro community to revalue its currency, nor have the shackles of the harsh fiscal austerity measures been loosened.
The subject of the euro crash and the dire state of the debt union is nothing new. It has always been floating about in the media, sometimes for purposes of intimidation, sometimes to advance political interests.
At the start of the crisis summit on 8 December 2011, when it was about the introduction of Eurobonds, which European Council President Herman Van Rompuy, Commission President José Manuel Barroso and Euro Group President Jean-Claude Juncker promoted, and which upset Merkel, it was clear that top EU officials still do not accept responsibility for the currency.
Maybe it was a fluke that Angela Merkel prevented the introduction of Eurobonds, because this would have immediately led to a crash. It is not clear whether Merkel alone saw through this and fought against it, or whether the gentlemen of the European Rescue League only wanted to make a little noise to wriggle more concessions out of Merkel, such as the easing of the deficit limits or more generous support from Germany. On the other hand, maybe they were just smart enough to see the relationship between the bankruptcy of the EU and the introduction of Eurobonds.
At the same conference, France’s Minister for European Affairs Jean Leonetti used some very specific terms: “The euro might explode and Europe could fall apart,” he told Canal+ Television. “This would not only be ‘a catastrophe’ for Europe and France, but for the entire world. The situation is serious.” Angela Merkel used similar words at the 2013 EU Summit about the exploding euro, though it is actually imploding with its devaluation. This time it was mostly about obliging the Southern European countries to implement the reforms required by the ECB, IMF and EU, and implies that henceforth fundamental policy in the Southern countries should be left to the European Commission. Once again, it was about power, the power to determine the fate of a number of countries. The key word was competitiveness; the southerners did not meet the standard. The threat of a euro crash, which was actually serious, was a means of promoting political schemes that ultimately led to the ECB becoming Europe's sole bad bank. Meanwhile, the debt managed by the ECB continues to grow. This also will draw negative comments, at the end of the year again, and probably at the crisis summit in Brussels. In advance of that summit, Markus Ferber (CSU), vice-chair of the European Parliament’s Economic and Monetary Affairs Committee, has already given his opinion on debt and sanctions. Ferber also sees devastating consequences from the indebtedness of the euro countries. Whether this will lead to the real reforms that are necessary is doubtful, because Eurozone politicians have so far demonstrated that they are incapable of reform. At the same time, the amount of debt accumulated by these countries, along with the cost of the measures to delay their insolvency, which has so far been avoided, may not even matter. It may also not matter that this debt, in addition to euro bailout payments, Target II claims, and the aid intended to delay bankruptcy, will be levied on the citizens – without their consent, of course. Because that’s politics, at least German politics. The chancellor basks in the glow of approval instead of explaining the true situation of the county, how close it is to the edge of the abyss.
By all appearances, the EU was not in a position to use the risk of a crash as an impetus for reforms and finally do away with the political squabbling. The manoeuvrings of the euro technocrats only compounded the disastrous debt situation. Considering the daily decline of the euro and the daily increase in the debt that all euro countries continue to amass, it really doesn't matter what concessions a chancellor made or might make at which conference of EU leaders, or how much debt she imposes on the European people, especially the Germans. The crash is imminent, there is no doubt. All EU leaders must take responsibility for this collapse. It is time for action. We have had enough talk.