Barroso: 1930es Dictatorship-Apocalypsis Impending - EU Commission Europe´s Economic Government - EU Wants Competencies of National States

Posted By Anders On June 18, 2010 @ 00:20 In English, Euromed | 2 Comments

Summary: Like the golden promises of the Soviet five-annual plans EU commissioners are now  promising glorious times of falling unemployment and rising prosperity - provided that we just give them the last remnants of our national sovereignty and provided growth they cannot create. Moreover, they want to achieve  this by "green economy", which in Spain led to 20% unemployment, because every new green job cost 2.2 ordinary jobs. What they forget to tell is that in a very low voice they themselves are now calling the Lisbon Strategy 2000-2010, which was accompanied by the same golden promises and even got the Lisbon Treaty to reinforce it, a flop. In order to put extra pressure on his  desire for the perfect dictatorship, Barroso is telling us that he is very worried that we are heading back to the dictatorship of the 1930s, unless people abide by very tight cuts in their salaries and pensions, ie.of a return to national states, which only occasionally were dictatorships in the 1930s. But the unions do not buy into that. In a true European spirit of cooperation they are preparing for strikes across the EU. Also EU MPs fear that EU´s reduction policy will lead to recession. It is estimated now that the welfare state is finished: it can no longer be paid for. Spain is said to to be next  in the queue of countries needing EU-money at once, actually 1 / 3 of the new EU rescue fund. The problem just is that Slovakia will not pay into the fund - and that can put it on ice. Analysts see a serious danger that the euro will burst or disintegrate. 100 Italian economists believe it will end up as several countries leave the euro, in order to keep their national currencies up through autonomous  old-fashioned interest adjustment and devaluation. There are indications that Greece may have such thoughts. But EU leaders are vigorously pursuing sanctions against euro countries which do not meet EU convergence rules. And not only that: Merkel and Sarkozy are advocating Barroso to manage the economies of  all 27 EU countries with a strong hand. The question is how long Merkel´s government can hold on to its generosity toward the Club Med - for her government is about to fall asunder because of anger, especially against Merkel. 

 

The Euro is apparently on an unstoppable demise course. The PIIGS countries seem more and more fickle, Spain apparently being about to ask for help from the eurozone pool. More and more analysts see it just as a matter of time before the euro will be split or disintegrate. But the [1] EU loves crises - for power grabbing.
[2] Eu-federalism

Crisis being used to create European federalism
The [3] Financial Times 20 May 2010:  Former Italian PM and Commission President Romano Prodi writes in the FT that "Combining the resources of the eurozone countries and the Commission with those of the European Central Bank is a step beyond the stability and growth pact." He adds: "I therefore consider the recent decisions made in Brussels as a very important step towards the gradual creation of a European fiscal federalism."

The EU Commission sees this crisis as a golden opportunity to eliminate national souvereignty – “But this is not EU power grab”!!  
[4] José Barroso, EU Press Release 16 June 2010: We need a real effort for an economic union in Europe. It is usually in times of crisis that we can make progress in the European project. This crisis can be a platform for a common European response and for a stronger Europe. I would like specially to thank the most important political forces in this Parliament that stood up and said that we need more than ever a European approach and a reinforcement of the Community method. We are at specific moment in time where Europeans, the markets, global community are asking Europe to be better coordinated, better organised, to achieve greater levels of convergence and coherence.Yes, the Commission in the areas in which the Treaties gives it the competence is indeed the economic government of Europe. The Commisssion exercises this role in co-operation with the European Council and the Council of Ministers. We also need a better coordination on issues under national competence. [5] EU Press Release - Olli Rehn, EU Commissioner for Economic and Monetary Policy 25 May 2010: To address our mid-to-long-term challenges, we need to implement structural reforms …to create jobs. If we can phase in ambitious structural reforms in the coming 5 years, we have a potential for an over 2 percent annual growth rate in the coming decade. That could create over 10 million jobs and take unemployment down to around 3 per cent by the end of the decade. The result, in the case of no reforms, would be an over 6 % lower level of GDP and 4½ % higher level of unemployment at the end of the decade. This would erode the foundations of our social market economy and drain the resources to take care of the people in need of support. We must invest in the low-carbon economy and green growth. With the rising trend in global demand for fossil fuels, this is very much in the enlightened self-interest of Europe. The Commission recently presented an ambitious set of proposals to reinforce economic governance in Europe. We want to strengthen preventive budgetary surveillance, to address macro-economic imbalances and to set up a permanent and robust [6] framework for crisis management.  
Comment: Time and again, Barroso and Rehn are talking about a future, flourishing “growth”, if only he gets more power. The [7] Lisbon Strategy promised this Paradise , too. However, it is admittedly a failure – in spite of having been reinforced by the praised Lisbon Treaty. This talk reminds of [8] Spains green economy having led to an unemployment rate of 20%, 2.2 ordinary jobs being lost for every green job created. This talk reminds of the unrealistic expectations of related Soviet 5 year plans. Notice Olli Rehn´s word “enlightened”, latin: illumininatus. The EU declares “to be working towards the noble aim of Illuminism” ([9] explanatory statement

[10] GuernicaBarroso according to  the chief of Europe's trade union chiefs, John Monks: "The continent on its way back to the 1930s. This is extremely dangerous."
[11] EUOBSERVER 14 June 2010: “This is 1931.We're heading back to the 1930s, with the Great Depression and we ended up with militarist dictatorship. I had a discussion with Barroso last Friday about what can be done for Greece, Spain, Portugal and the rest and his message was blunt: “Look, if they do not carry out these austerity packages, these countries could virtually disappear in the way that we know them as democracies. They've got no choice, this is it."
"He's very, very worried. He shocked us with an apocalyptic vision of democracies in Europe collapsing because of the state of indebtedness." Trade unions, which have so far mounted a number of general strikes and protests in different countries, are intensifying their offensive against the austerity plans despite Brussels' misgivings, and are for the first time beginning to co-ordinate their actions across member states.

[12] EUObserver 16 June 2010: The emerging new leadership in Slovakia has said the country will not contribute its share of the €110 billion rescue package for Greece. In addition, Bratislava is likely not to add its signature to the €750 billion eurozone support mechanism - something that could put the entire project on ice.

[13] The Telegraph 14 June 2010: Analysts at the French financial group AXA see a serious likelihood that the eurozone will break in half or disintegrate, dismissing Europe's €750bn (£623bn) rescue package for Club Med debtors as a stop-gap measure that misdiagnoses the problem. "We are in a very major crisis that has even broader implications than the credit crisis two years ago. The politicians have not yet twigged to this." Ms Zemek said the rescue had bought a "maximum" of 18 months respite before deeper structural damage hits home, with a "probable" default by Greece setting off a chain reaction across Southern Europe. "It would be the end of the euro as we know it.  It is becoming clear that German demands for austerity across EMU are nearing the limits of political tolerance, and may prove self-defeating as 1930s-style wage deflation sets off a vicious circle.

Greece's woes increased further as Moody's downgraded Greek debt to junk status. Greece is almost entirely shut out of the capital markets. In the case of Greece the joint IMF-EU policy [14] Police-fire_1538655cwill increase Greek public debt from 120pc to 150pc of GDP by 2014, arguably making matters worse.
A number of ex-IMF officials have said the policy is doomed to failure. The Bank for International Settlements said French and German lenders have $958bn (£650bn) in exposure to Greece, Ireland, Portugal and Spain.  We are looking at a noble experiment on the brink of failure," said Ms Zemek.

Spanish bail-out imminent? 
[15] EUObserver 16 June 2010: Reports have surfaced that the EU, the IMF and the US treasury are drawing up an emergency liquidity plan for Spain that includes a credit line of up to €250 billion.

[16] Ireland_1357347c[17] EU Parliament 19 May 2010:  Parliament's Economics Committee discussed the steps taken to support Greece and the wider Eurozone with the ECOFIN Council President, Spanish Deputy Prime Minister Elena Salgado, on Wednesday. Members voiced concerns about relying on a system dominated by national interests, which, they said, had acted too slowly.
MEPs raised worries about adopting drastic austerity programmes when economies are still experiencing sluggish and uneven economic growth.  Pascal Canfin (Greens/EFA, FR) warned of an EU recession caused by austerity policies.  "If there is a recession, it will then be politically impossible to continue with these budget tightening policies" he said.  Anni Podimata (S&D, EL)  added that the very rapid budget cutting targets for Greece would lead to rising unemployment, which would in turn reduce demand. Ms Salgado said that there could be no hiding the fact that, in the short-term, the austerity measures would impact growth.

Economic government of the entire EU. EU Treaty to be changed if necessary. France and Germany demand worldwide financial tax 
[18] EurActiv 15 June 2010: Dropping his earlier insistence that there should be a formal institution to steer the economic governance of the euro zone, Sarkozy accepted Merkel's suggestion that regular EU summits should play that role. In response, Merkel accepted that in case of emergency, there would be informal ad hoc meetings of eurozone members. Sarkozy, who until now had not favoured punitive measures, said that it was not clear if there was a need to change the EU treaty for that purpose. "If a treaty change is needed we will propose it," he said.
[19] Merkel-sarkozy-parring[20] Deutsche Welle 14 June 2010:  Merkel appears to have swayed Sarkozy on some issues, one of which was the suspension of European Union voting rights for countries that seriously violated the bloc's limits to budget deficits. . "We need stronger economic governance," said Merkel. "We saw in the crisis how the markets and speculators, which are not the same thing, were able to react in a thousandth of a second," Sarkozy said. "Our procedures need to become more operational and more pragmatic. In other words, economic government for the 27, and if necessary meetings on eurozone problems in the eurozone. Berlin says it wants to reduce its budget deficit through spending cuts alone, and Merkel's government recently unveiled an 80 billion euro ($98 billion) austerity package. France argues that doing so would choke off growth and plunge economies back into recession.
[21] The Guardian 14 June 2010:  German chancellor Angela Merkel's centre-right coalition government looked to be close to collapse today. But much of the mistrust and anger is being directed at Merkel herself.

[22] The Telegraph  25 May 2010
A highly intelligent German, to whom I was speaking the other day, conceded that her country had put up with this for decades out of guilt over what happened before 1945. However, her generation of Germans, whose parents were barely born when Hitler held power, feel they have atoned enough: Mrs Merkel cannot say this, but she, too, must know it is true. She must also realise that her party is not going to win any elections if it stands on a programme of giving hard-earned German money to dissolute countries in Club Med.

The [23] Daily Mail 25 May 2010   The welfare states of Europe that rose out of the ashes of the Second World War are now facing destruction because of the sovereign debt crisis, analysts say. 'The current welfare state is unaffordable.
[24] EUBusiness 21 May 2010: The EU crisis is shaking financial markets around the globe despite approval by the US Senate on Thursday of landmark financial sector reforms. The depth of the crisis and the concern it is generating were spotlighted by the head of the International Monetary Fund Dominique Strauss-Kahn. "I do not believe that the eurozone is at risk of breaking up," he said in remarks to French television late on Thursday. "The whole world is watching this … and is losing confidence in Europe," he said.

But the Europeans will not accept the austerity measures
[25] EurActiv 20 May 2020One of the largest mass protests since the fall of Communism in 1989 hit Bucharest yesterday (19 May) after the government announced deep spending cuts, [26] Berlin-democasting doubt over Romania's ability to meet its IMF loan commitments. According to EurActiv Romania, between 30,000 and 50,000 protesters took to the centre of Bucharest, while the trade unions said a general strike would be called on 31 May. Under pressure from the IMF, the government promised to slash state wages by 25% and pensions by 15% . But the government may end up bowing to public pressure. "The ability of the government to deliver substantial cuts by July to meet the IMF's demands is low," BNP Paribas analysts said in a note.

Now even the Germans are rising against the austerity measures
[27] Radio Utopia 13 June 2010. 45.000 people were demonstrating in Berlin and Stuttgart against the devastating dismantling of the sociial state. The police holds maneuvers to crush social riots, beating statists.
Here [28] video, showing how the demonstration in the Torstrasse on 12 June elapsed – 3 “bangers” were thrown, 2 police officers were hurt.  [29] Description here. And the[30] French are about to join in.

Comment
Now  [31] Nobel Prize winner, Paul Krugman, says the austerity measures are totally wrong, leading to a recession catastrophe.
So what does all this have to mean? A necessary evil: [32] Bilderberger, Rothschild-agent George Soros, Reuters 15 June 2010: European recession next year "almost inevitable.The crisis of the euro could actually have the potential of destroying the European Union."  May this happen, before Barroso sees his wishes come true. For PIIGS-countries need freedom of action to increase their interest rates and to devaluate – which is impossible in the euro zone.  So [33] 100 italian economists think, who expect the euro zone soon to fall asunder. Perhaps this is exactly, what [34] Greece is planning in a surprise action.


Article printed from Euro-med: http://euro-med.dk

URL to article: http://euro-med.dk/?p=15990

URLs in this post:
[1] EU loves crises: http://euro-med.dk/?p=15393
[2] Image: http://euro-med.dk/billeder/billedereu-federalism1.jpg
[3] Financial Times 20 May 2010:: http://www.ft.com/cms/s/d3fa8864-6436-11df-8618-00144feab49a,Authorised=false.html?_i_location=http%
3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fd3fa8864-6436-11df-8618-00144feab49a.html&_i_referer=

[4] José Barroso, EU Press Release 16 June 2010: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/314&format=HTML&aged=0&
;language=EN&guiLanguage=en

[5] EU Press Release - Olli Rehn: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/10/257&format=HTML&aged=0&
;language=EN&guiLanguage=en

[6] framework for crisis management: http://euobserver.com/18/30132
[7] Lisbon Strategy : http://en.wikipedia.org/wiki/Lisbon_Strategy
[8] Spains green economy : http://seattletimes.nwsource.com/html/opinion/2009385016_will26.html
[9] explanatory statement: http://euro-med.dk/EU-Documents/Draft-EU-Legislative-Resolution-A6-0356-2007.pdf
[10] Image: http://euro-med.dk/billeder/billederguernica1.png
[11] EUOBSERVER 14 June 2010: http://eupolitics.einnews.com/article.php?oid=1GCbHYkZxUUwooM&v=48247Emw3_BHm/9x1NGN/GANHIC2JydX
U

[12] EUObserver 16 June 2010:: http://euobserver.com/9/30293
[13] The Telegraph 14 June 2010: http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7827867/AXA-fears-fatal-flaw-will-d
estroy-eurozone.html

[14] Image: http://euro-med.dk/billeder/billederpolice-fire-1538655c1.jpg
[15] EUObserver 16 June 2010: : http://euobserver.com/9/30295
[16] Image: http://euro-med.dk/billeder/billederireland-1357347c1.jpg
[17] EU Parliament 19 May 2010: http://www.europarl.europa.eu/news/expert/infopress_page/042-74652-137-05-21-907-20100517IPR74651-17
-05-2010-2010-false/default_en.htm

[18] EurActiv 15 June 2010:: http://www.euractiv.com/en/future-eu/merkel-sarkozy-eye-watered-down-economic-governance-news-495213
[19] Image: http://euro-med.dk/billeder/billedermerkel-sarkozy-parring1.jpg
[20] Deutsche Welle 14 June 2010: http://www.dw-world.de/dw/article/0,,5684365,00.html
[21] The Guardian 14 June 2010: http://www.guardian.co.uk/world/2010/jun/14/angela-merkel-germany-coalition-collapse
[22] The Telegraph  25 May 2010: http://www.telegraph.co.uk/comment/columnists/simonheffer/7765275/The-collapse-of-the-euro-would-ope
n-the-door-to-democracy.html

[23] Daily Mail 25 May 2010 : http://www.dailymail.co.uk/news/worldnews/article-1281040/The-death-welfare-state-Europe-U-S-think-t
ank-labels-generosity-unaffordable-warns-day-reckoning.html

[24] EUBusiness 21 May 2010: http://www.eubusiness.com/news-eu/finance-economy.4un/
[25] EurActiv 20 May 2020: http://www.euractiv.com/en/euro/austerity-measures-spark-mass-protests-romania-news-494361
[26] Image: http://euro-med.dk/billeder/billederberlin-demo-thumb1.jpg
[27] Radio Utopia 13 June 2010: http://www.radio-utopie.de/2010/06/13/europaisches-grossmanover-european-union-police-forces-trainin
g-zur-aufstandsbekampfung-polizei-als-sandsacke-vom-staat-missbraucht/

[28] video: http://vimeo.com/12518342
[29] Description here: http://www.radio-utopie.de/2010/06/13/video-der-explosionen-in-der-torstrasse-berlin-zur-demo-wir-za
hlen-nicht-fur-eure-krise/

[30] French are about to join in.: http://www.independent.co.uk/news/world/europe/france-braced-for-strikes-over-plan-to-raise-retireme
nt-age-2002599.html

[31] Nobel Prize winner, Paul Krugman,: http://www.nytimes.com/2010/06/18/opinion/18krugman.html?hp
[32] Bilderberger, Rothschild-agent George Soros, Reuters 15 June 2010: http://eupolitics.einnews.com/article.php?oid=zJsRB/pzSM0wsko&v=48351Emw3_BHm/9x1NGN/GANHIC2JydX
U

[33] 100 italian economists: http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100006271/the-euro-mutiny-begins/
[34] Greece is planning in a surprise action: http://www.dw-world.de/dw/article/0,,5689387,00.html