Berlin favours economic and social disintegration in certain Eurozone countries

 Defending rights at work. (EC Audiovisual Services) © European Union.

Defending rights at work. (EC Audiovisual Services) © European Union.

In the fourth year of the ongoing financial and real economy crisis in Europe, the deterioration of the employment and social situation was an easily predictable prospect. However the increasing pace of this worsening and the widening divergence between member states, as monitored by the EU Employment and Social Situation Quarterly Review for March 2013, poses now in the most urgent manner an overall reassessment of the policy tools and the economic targets set by the European Union’s governing elite in Brussels, Berlin and Paris.

For one thing all EU citizens, in the crisis stricken South and the still affluent North, for different reasons become everyday more disillusioned with the European project. The Southerners are angry for obvious reasons and the Northerners because they are told that they are working harder to support the lazy ones.  The antithesis between the Europe’s South and North if left to take its toll, it will undermine the ability of the Union to overcome the next economic crisis, which is surely approaching. The draconian measures though, imposed on Cyprus, Greece, Portugal, Ireland, Spain and Italy could have been tolerated by those populations, if there were some tangible prospects for betterment in the foreseeable future.

It’s not only that there is no light at the end of the tunnel for those populations, but on top of that the German political elite, spearheaded by the Federal Minister of Finance, Wolfgang Schauble, now telling everybody that Berlin can set the rules for the economies of Eurozone countries, and consequently redefine their social structures. In this dangerous game Germany targets more countries and not only the PIGs. For example the affluent Luxembourg is now under pressure by Germany, for the same reasons like Cyprus. Both those two small countries have developed strong financial sectors, independent from Frankfort and the Deutsche Bank.

Luxembourg vs Germany

Jean Asselborn, the Foreign Minister of Luxembourg speaking to Reuters yesterday was furious with Germany, because as he put it, this country wants again to impose its hegemony in Europe. Asselborn implied that the Germans want to destroy Luxembourg’s thriving financial sector, as they did with Cyprus because it is ‘overgrown’. In reality Germany wants to relocate Luxembourg’s business and profits to Frankfurt.

Of course Berlin doesn’t want to see most of Eurozone impoverished as a policy target ‘per se’. By applying the Teutonic principle however that Germany must profit from everything, the target remains this. In this logic Italy for example should stop producing what Germany produces, because the Italian cars and the Italian machines are not as good as the German products.

Targeting social deterioration

The fast deteriorating social and labour situation over at least half of Eurozone countries seems then to be a policy target for Berlin. Germany also seems to set the ‘right’ structure for all Eurozone economies (to resemble its own?). An overgrown financial sector is ‘bad’ and has to go. It was exactly this, what has happened in Cyprus, and Luxembourg is now afraid it may be next. After some months Berlin might target the Italian small and medium industrial firms, which are competing successfully with the German producers. The pretext may be that the Italians are not paying their taxes in full while the Germans do, or something like that.

The final result will be a fractured European Union and an endemic impoverishment of many countries. According to the findings of the European Commission’s Quarterly Review on EU Employment and Social Situation (March 2013):” Divergence continues to increase across Member States, translating into persistently growing labour market and social challenges, marked by ever higher unemployment at EU level”.

According to the same source the employment and social situation in the EU remained critical in the fourth quarter of 2012 with employment receding overall and unemployment rising further and households’ financial situation remained serious. The adverse effects of public budget cuts and tax increases on employment and living standards are increasingly apparent in certain Member States.

If the social and economic developments in the European Union continue to be powered by the same Teutonic policies the explosion seems to be inevitable in many countries. However the national political and economic elites in the worst hit EU member states, in order to avoid disintegration will reject the Germanisation of Europe, and resort to their own tools. Italy is most prone to take this direction, with a return to its old currency, the lira. In this case though the problem is how dear will be the price in terms of employment and social deterioration, if a country leaves the EU.

In any case Berlin seems determined to continue in its current policy lines, no matter how severe the effects will be on the employment and social situation in the EU. In reality either way, within or without the Eurozone many countries will continue to suffer.










the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

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

Macron plans for Europe, Brexit and banks but vague on France

Change is happening – and young people are leading the way forward

Why cities hold the key to safe, orderly migration

Pervasive corruption costs $2.6 trillion; disproportionately affects ‘poor and vulnerable’ says UN chief

The remote doctor in the 21st century

AIESEC @ European Business Summit 2015: The power of an individual and how we can awaken Europe’s Youth

What is the UN General Assembly and what does it do?

UN refugee agency presses States to aid 49 refugees stranded on Mediterranean

Reception conditions for asylum-seekers agreed between MEPs and Council

European Commissioner for Youth wants young people to be at heart of policy making

This solar-powered car lets you drive for free

What lies ahead for the Korean Peninsula?

Light at the end of the Eurozone tunnel

ECB indicates south Europeans can endure more austerity

How China raised the stakes for electric vehicles

The West cannot ignore Russia; dazed Germany sitting on the fence

Why do medical students need to emigrate to become doctors in 2017?

Erdogan’s electoral win on a ‘me or chaos’ dilemma means trouble for everybody

The impact of mobile and rapid digital adoption on how India consumes

How populist and xenophobic movements in the EU tear apart European businesses and startups

More electric cars on EU roads by 2030

Why CFOs need to rethink what it means to create value

Connected Claims returns to London in 2018

Why lay people don’t expect anything good from G20

Trump stumbles badly on his Russian openings; Europeans wary of Putin

Syria: A bloody tracer of Trump – Putin rapprochement


We can’t rid Asia of natural disasters. But we can prepare for them

Regional competitiveness and growth: a Gordian knot for Europe

Soil pollution ‘jeopardizing’ life on Earth, UN agency warns on World Day

The refugee crisis brings to light EU’s most horrible flaws and nightmares

Bangladesh, South Africa and Bolivia all beat the US for women’s representation in politics

Students in Milan are moving in with the elderly to fight loneliness and save money

Permanent structured cooperation (PESCO) on the table of NATO Defense Ministers amid US concerns

Germany loses leading export place

Rule of law in Hungary: Parliament calls on the EU to act

Nearly three million more displaced year-on-year, warns refugee agency chief, but solutions are within reach

Single-use plastics: New EU rules to reduce marine litter

In polarized America, a new divide looms

‘Power is not given, power is taken’, UN chief tells women activists, urging push-back against status quo

How bad could British healthcare get for its citizens abroad post-Brexit?

“Working together to make a change at the COP 21 in Paris”, an article by Ambassador Yang of the Chinese Mission to EU

FROM THE FIELD: For refugees and migrants in Europe, healthcare’s essential but a challenge to find

Is the European Banking Union an impossible task?

The EU seals CETA but plans to re-baptise TTIP after missing the 2016 deadline

Heard about deepfakes? Don’t panic. Prepare

Can Eurozone stand economic and financial fragmentation?

Why are the Balkans’ political leaders meeting in Geneva this week?

Following the World Cup? Then you’re watching high-performing migrants at work

Climate change is a disruptor. Here’s how to harness it for innovation

Mandela, ‘true symbol of human greatness’, celebrated on centenary of his birth

A Europe that Protects: Commission calls for more efforts to ensure adoption of security proposals

Madagascar: UN chief commends leaders, State institutions following ‘historic milestone’ election

How electrification will make the world more inclusive

Prosecution of Paraguay judges over peasant ‘massacre’ ruling could undermine rule of law: UN expert

Vulnerable young people must not be blamed & stigmatised for violent radicalisation

Canada needs to increase foreign aid flows in line with its renewed engagement

Commission presents its response to Antisemitism and a survey showing Antisemitism is on the rise in the EU

Poorer countries set to be ‘increasingly dependent’ on food imports, says UN food agency report

The role of junior entrepreneurs as a bridge between academia and business world

More Stings?


  1. Many countries should leave the EU , there is no interrest in being part of an unaccountable organisation .

Speak your Mind Here

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

You are commenting using your 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