Why Europe’s high productive performance is discredited?

Jean-Claude Marcourt, Belgian Deputy Prime Minister of the Walloon Government and Minister for the Economy, SMEs, Foreign Trade, New Technologies and Higher Education, 1st from the right, Antonio Tajani, Vice-President of the EC in charge of Industry and Entrepreneurship, 1st from the left, Wolfgang Eder, President of European Confederation of Iron and Steel Industries (Eurofer), 2nd from the left, and Arnaud Montebourg, French Minister for Productive Recovery, 3rd from the left. (EC Audiovisual Services).

Jean-Claude Marcourt, Belgian Deputy Prime Minister of the Walloon Government and Minister for the Economy, SMEs, Foreign Trade, New Technologies and Higher Education, 1st from the right, Antonio Tajani, Vice-President of the EC in charge of Industry and Entrepreneurship, 1st from the left, Wolfgang Eder, President of European Confederation of Iron and Steel Industries (Eurofer), 2nd from the left, and Arnaud Montebourg, French Minister for Productive Recovery, 3rd from the left. (EC Audiovisual Services).

Eurostat, the EU’s statistical service, released data on Eurozone’s foreign trade showing that during 2012, euro area trade in goods recorded a surplus of €81.8 billion, outperforming the most optimistic predictions. This is not however the only good news for Eurozone external accounts for last year. Traditionally Eurozone records also a hefty surplus in international trade of services of the order of around 0.5% of GDP.

Given that the seventeen Eurozone countries’ GDP was around €9.5 trillion last year, it means that the surplus of trade in services with the rest of the world left a net gain of €47.5bn. This excellent performance of Eurozone’s’ real economy in its relations with rest of the world in 2012 was not an exemption. Surpluses revolve around those numbers for many years now. It must be noted that the trade balances in goods and services with the US are positive for Europe and negative for the United States.

In detail the entire European Union of the 27 countries’ trade surplus increased with the USA to €80.2bn euro in January-November 2012, compared with €64.6bn in January-November 2011. In short Europe objectively repels in practice the accusation that its productivity is low compared to that of the US and it needs to be increased, using the well-known unpopular measures. All first year students of economics already know however that the trade between two economies is an infallible witness of their comparative competitiveness. The more productive one would export more and import less.

In short, the one of the two which records surpluses in their bilateral trade relations is by theory and practice more competitive. Now let’s answer briefly the question why a lot of people in the European Commission, the European Central Bank and a number of European governments promote the lie that Europe is not productive enough and has to do unpleasant things to the many, to increase it. Incidentally the European Sting’s writer Maria Milouv has answered this question in an article entitled “It’s a lie Eurozone isn’t competitive”.

A world-wide fallacy

It’s not only some European leaders though who insist that Eurozone is not competitive enough. This lie has spread all over the world like plague and one can hear it being repeated in Washington, Beijing, Moscow, Tokyo and practically all over the world. While Maria Milouv has found why this lie is being promoted by the European leaders themselves, there are more reasons why all the rest of world’s rulers, elected or not, in developed and developing countries alike want their own people to believe that Europe is not competitive and its economic model non viable.

Let’s follow the facts. All the working people in the rest of the world, the US and China alike, know and believe deeply in their minds that in western European countries education, health care, social security, unemployment benefits and justice are more or less guaranteed to all and are paid by the government, out of strongly progressive taxation. For them all that are just a dream.

Discrediting the EU model

The problem is however that in the US all the governments, before President Barack Obama, worked hard to cut down taxation for the rich and thus reduced the ability of the state to offer to Americans all those beautiful things Europe is still offering to its citizens. As a result the unholy efforts and campaigns of some politicians for even lower taxation for the rich, has to go hand in hand with the discrediting of the west European economic model. That is why the majority of main stream American media, promote the idea of lazy and unproductive Europe. They want the model of high taxes for the rich, to be totally discredited.

The same is true for the developing world. Peoples in Asia, South America even Africa have to be convinced that the west European model is not viable and has to be avoided. All over the world the rich want to avoid the prospect of paying for example 60% income tax, above say the level 100 times the lowest salary. To be reminded that in the US of Franklin D. Roosevelt’s New Deal the rich were paying income taxes up to 78%. Mind you Roosevelt was not a communist! He is the only US President elected more than twice.

Today’s rich do whatever they can to erase this historical fact from the memory of people. Exactly in the same manner as some politicians keep repeating the lie, that Europe is not competitive nor its economic model viable. Their aim is to avoid high taxation for the rich and deny quality social services to the poor. The unholy part of this story is that even the European politicians participate in this campaign of shame to discredit the generous social model of post war Europe. The European Sting writer Maria Milouv has elaborated on that and will continue to analyse the different facets of this  phenomenon.

 

 

 

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

China Unlimited: an exclusive interview with the former Ambassador of Hungary to China

Healthcare workers’ safety: a forgotten necessity

Understanding the ‘second brain’ in your gut

5 things to know about the exploding world of pro gaming

First EU-wide protection for whistle-blowers agreed

The EU has to prove it can remain one piece

These 8 countries have perfect scores for women’s rights at work

International Women’s Day: Where does she belong?

Africa-Europe Alliance: European Commission committed to a sustainable African agri-food sector

4 things ISPs can do to reduce the impact of cybercrime

Trump ‘used’ G20 to side with Putin and split climate and trade packs

State aid: Commission opens in-depth investigation into arbitration award in favour of Antin to be paid by Spain

Vile act of torture prohibited ‘under all circumstances’, UN chief affirms on International Day to support victims

3 ways to ensure the internet’s future is creative, collaborative and fair

This lethal fungus is threatening to wipe out the world’s bananas

EU food watchdog: more transparency, better risk prevention

New rules on drivers’ working conditions and fair competition in road transport

Help African farmers cope with climate change threats, UN food agency urges

Why cybersecurity matters more than ever during the coronavirus pandemic

Europe eyes to replace US as China’s prime foreign partner

3 ways to make technologies more inclusive for people with disabilities

Confidence in the COVID-19 vaccine grows in UK and US, but global concerns about side effects are on the rise

Preventing and resolving conflicts must form ‘backbone’ of collective efforts – UN chief

UPDATED: Thousands flee fighting around Libyan capital as Guterres condemns escalation, urges ‘immediate halt’ to all military operations

How emerging markets will shape Africa in 2020

5 factors driving the Chinese lawtech boom

This tool shows you which cities will flood as ice sheets melt

High-tech or ‘high-touch’: UK survey gives clues to the jobs of the future

Security Council urges ‘maximum restraint’ around Gulf region as Iran and United States trade diplomatic blows in New York

EU Parliament says ‘no’ to austerity budget

ISIS fighters fleeing Mosul for Syria can topple Assad. Why did the US now decide to uproot them from Iraq?

China and China-EU Relations in the New Era

5 things you might not know about forests – but should

More hiring freedom can reduce teacher shortages in disadvantaged areas

When it comes to envirotech adoption, NGOs can lead us out of the woods

‘Extinction crisis’ pushes countries to agree stronger protection for global wildlife

Why we need both science and humanities for a Fourth Industrial Revolution education

The digital transformation is a skills and education opportunity for all. Companies must use it

European Commission increases support for the EU’s beekeeping sector

Building a Climate-Resilient Future – A new EU Strategy on Adaptation to Climate Change

The UK option: An overarching alternative for the whole Brexit options

‘The time for action is now’ senior UN peacekeeping official says, urging support for regional force combating Sahel terrorism

Mediterranean migrant drownings should spur greater action by European countries, urge UN agencies

Carbon levy on EU imports needed to raise global climate ambition

Iran: women hunger strikers entitled to medical care, UN rights experts urge

It is now the era to evolve mutually as the bacteria do

COVID-19: Revised rules to encourage banks to lend to companies and households

Fashion’s hot new trend: clothes you don’t need to wash (very often)

Stronger partnerships with post-conflict countries needed to ensure ‘path towards durable peace’: UN chief

Republic of Korea President proposes DMZ as future ‘peace and cooperation district’ on Peninsula

Women’s work faces the greatest risk of automation, says new research

May led Britain to chaos, now looks for way out with unpredictable DUP

We must rethink and repurpose cybersecurity for the COVID-19 era

EU-Turkey relations: EU considers imposing sanctions while Turkey keeps violating Cyprus’ sovereignty

National parks give a $6 trillion boost to mental health worldwide

Here’s how data can shine a light on financial crime

Will Eurozone be able to repay its debts? Is a bubble forming there?

Eight years in, Syria still embroiled in conflict ‘that no longer sparks outrage’, Security Council hears

Difficulties of vaccination against COVID-19

Services are the hidden side of the US-China trade war

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s