EU Parliament: A catastrophic crisis management by European leaders

European Parliament. Plenary session, week 11, 2014 in Strasbourg. Preparations for the European Council meeting (20-21 March 2014). Council and Commission statements. (in the forefront) Jose Manuel Barroso, European Commission President has the floor (standing on the right) and Commissioner Olli Rehn EC Vice-President in charge of Economic and monetary affairs and the Euro. (EP Audiovisual Services 12/3/2014).

European Parliament. Plenary session, week 11, 2014 in Strasbourg. Preparations for the European Council meeting (20-21 March 2014). Council and Commission statements. (in the forefront) Jose Manuel Barroso, European Commission President has the floor (standing on the right) and Commissioner Olli Rehn EC Vice-President in charge of Economic and monetary affairs and the Euro. (EP Audiovisual Services 12/3/2014).

The European Parliament once more confirmed its reputation as the authentic channel transiting the social and the economic realities the European people have to endure to decision makers. Yesterday, the MEPs disagreed with the Commission President Manuel Barroso and Dimitrios Kourkoulas, the Greek deputy Foreign Minister speaking for the Council Presidency, that economic recovery was on the way. It was the Wednesday’s debate in view of the last EU summit of 20-21 March, ahead of the European elections.

Both Barroso and Kourkoulas stated that the worst is more or less behind and growth is here, albeit weak and uneven. However, the legislators pointed out that in the real economy juncture, as experienced by the vast majority of the productive apparatus which is the SMEs, nobody talks about growth but about bankruptcies. The MEPs also pointed out that the SMEs are starved of credits because the banks are not there for the rest of the economy.

SMEs and banks

The delay to create the Banking Union prolongs this situation and drives the SMEs to asphyxia. The multinationals and the big business do not depend on the banks for their financing and probably are happy to see their small competitors disappear. For years now the banks are cutting down their overall balance of loans to the real economy. This is of course an average. The situation is much worse in crisis hit countries like Italy, Spain, Greece, Portugal, Ireland and Cyprus.

The interventions by lead MEPs were very to the point. Joseph Daul (EPP, FR) pointed to the importance of SMEs as the driving force of Europe’s economy and warned: “Unless we have real tax, fiscal and social harmonisation, then we will continue to see SMEs going bankrupt.” Hannes Swoboda (S&D, AT) blamed the Council for its lack of courage, lack of vision and lack of guidance. The next summit would be “business as usual”, with “vague commitments, looking for the lowest common denominator”, he said. Guy Verhofstadt (ALDE, BE) said we were not in a period of growth but of economic stagnation. He stressed: “We shall not recover if we don’t create, first of all, the banking union”.

Catastrophic crisis management

The legislators had a lot to say about the catastrophic management of the financial crisis. It’s well known by now that the Eurozone banks have received in subsidies a round sum of €4.5 trillion of public money. This money, extracted from Eurozone’s poor taxpayers is used to write down their losses in unbelievable bets in all and every market all over the world.

Even in the bankruptcy of the City of Detroit a number of Eurozone banks were caught with a large exposure. As long as those bets produced a super-profit the bankers pocketed it. When the bets went bust the governments ran to make it up to banks. Gabi Zimmer (GUE/NGL, DE) condemned the EU’s failed crisis management. She said the brutal public spending cuts in EU countries “put the burden on those who have nothing to do with causing the crisis”.

The worst hit

The MEPs extended their criticism on the wider economic strategy followed by the EU and its core member states. Globalisation was at the center of it. Andrew Henry William Brons (NI, UK), said that the European Semester reforms would mean that “a relatively high-wage economy or group of economies embracing the ideology of globalism and the process of globalisation must drive down wages to compete with the emerging economies”. The South of Eurozone has already experienced this process. Wages and salaries in Greece, Spain and Portugal are now reduced to developing world levels.

In the worst hit of them all, Greece, a lot of people work only for their social security contributions. Workers nearing the retirement age have no prospects at all, if they lose their job. As a result, they accept to continue working only for their social security payments for two or three years in order to reach retirement. With overall unemployment at 28% and 60% of youths without a job the social horizon is quite dark.

Last but not least the MEPs strongly criticized the next European Summit of the 28 EU leaders, by predicting it will be another ‘zero sum game’. The results of the meeting will be “business as usual”, with “vague commitments, looking for the lowest common denominator”, Hannes Swoboda (S&D, AT) stressed.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

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

Two women threaten to tear the world apart

The implications of Brexit on European business, youth entrepreneurship and junior enterprises.

Treaty prohibiting nuclear weapons marks first anniversary, but still lacks sufficient numbers to become law

Rising landmine blast toll in Afghanistan highlights long-term care needs of survivors

Giving humanitarian help to migrants should not be a crime, say MEPs

Jo Cox’s murderer believed the ‘leave’ campaign leaders that the ‘remain’ vote is treason

Brexit kick-off: a historic day for the EU anticlockwise

Will Merkel ever steer the EU migration Titanic and restore her power in Germany?

Why is the EU launching a doomed policy in stopping immigrant waves? What are the real targets?

Another 170 migrants disappear in shipwrecks, UN agency reiterates call for an end to Mediterranean tragedy

Satellites and data are going to help us phase out fossil fuels. Here’s how

How much is nature worth? $125 trillion, according to this report

Preparing medical students for new challenges in medical ethics

The EU Commission predicts a decimated growth in the next years

UN calls for funds to ease ‘deteriorating’ humanitarian situation in Gaza and West Bank

Imaginary Journeys Into Eternal China

For how long will terror and economic stagnation be clouding the European skies?

G20 LIVE: “United States and Turkey stand in solidarity with France and its people in handing the perpetrators of this crime and bringing them to justice”, US President Barack Obama underlines from G20 in Antalya Turkey

Trade in fake goods is now 3.3% of world trade and rising

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

Brexit: Ensuring a smooth transition for car producers and safety on the roads

Wednesday’s Daily Brief: Sudan, Libya, Yemen updates, solutions for e-waste, flood response in Iran, online security for children

Chart of the day: This is how many animals we eat each year

‘I thought I’d never get out alive’ – the Muslim director who interviewed neo-Nazis

Nuclear test ban treaty critical to global collective security – UN chief

Doctors without borders

German egotistic inward turn to badly hurt Europe after Merkel’s exit

You’ve heard of 5G, but what about the quantum internet?

Marking Sir Brian Urquhart’s 100th birthday, UN honours life-long servant of ‘we the peoples’

Protect women’s rights ‘before, during and after conflict’ UN chief tells high-level Security Council debate

EU Commission: Germany can make Eurozone grow again just by helping itself

Accelerating a more sustainable industrial revolution with digital manufacturing

Italy’s dilemma after Merkel-Hollande agreed loose banking union

These chefs are fighting hunger and poverty with gastronomy

Service and Sacrifice: Ugandan ‘Blue Helmets’ support UN efforts to bring peace to Somalia

World Health Organization calls crisis meeting over deadly Ebola outbreak in DR Congo

Somalia: UN mission head condemns deadly terrorist attacks in Mogadishu, Galkayo

Low quality healthcare is increasing the burden of illness and health costs globally

European Union: From financial consolidation to deeper political division

4 things to know about the state of conflict today

Social, cultural diversity ‘an enormous richness, not a threat’ Guterres declares calling on investment for a harmonious future

“Health and environment first of all”, EU says with forced optimism after 7th round of TTIP talks

MEPs approve EU’s spending in 2017

Myanmar: Conflict resolution at ‘total standstill’, military commanders must answer for crimes against humanity

5G will redefine entire business models. Here’s how

UN rights experts call on Russia to release Ukrainian film-maker whose life is in ‘imminent danger’

“No labels for entrepreneurs!”, a young business leader from Italy cries out

Is there a chance for the West to win the war on terror?

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

From UN Assembly podium, Central African Republic leader appeals for lifting arms embargo

A Young student assesses the Programme for International Student Assessment (PISA)

UN chief calls for ‘solidarity, compassion and action’ on World Refugee Day

Batteries can power sustainable development. Here’s how

INTERVIEW: UN’s top official in North Korea foresees ‘surge’ in humanitarian aid

Monday’s Daily Brief: ‘Horror’ at Notre Dame fire disaster, Yemen still bleeding, measles now ‘global crisis’

‘Humiliation was the worst’; Holocaust survivor at UN, asks world to act with ‘empathy and compassion’

Population in crisis hit EU countries will suffer for decades

The Ecofin Council creates officially the clan of ‘undead’ banks

Yemen update: UNICEF chief condemns attack in Taiz that claims lives of seven children

Is Europe ready to cooperate with the rest of the world? Can Germany change its selfish policies?

More Stings?

Comments

  1. Heya i’m for the first time here. I found this board and I find It really useful & it helped me out a lot.
    I hope to give something back and help others like you aided me.

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