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

the sting Milestone

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

‘Being open about my mental health created a better work culture’

Engaging world’s youth vital to preventing violent extremism, building sustainable peace, UN official tells Baku Forum

Chile ups foreign bribery enforcement but flawed case resolutions are insufficient to ensure transparency and accountability

Hungary must enforce its foreign bribery offence against companies, including foreign subsidiaries

The Parliament defies a politically biased Banking Union

UN chief condemns student abductions in north-west Cameroon

MEPs call for EU Magnitsky Act to impose sanctions on human rights abusers

Bayer-Monsanto merger: the story of the rise of the “endless company”

Can cybersecurity offer value for money?

Europe must regain its place as world leader in digital technology

2014 budget: The EU may prove unable to agree on own resources

Snowden is the “EU nomination” for this year’s Oscars

Apple® logo (copyright: Apple)

Apple takes further step into music: EU Regulators formally approve its planned Shazam acquisition

Parliament elects Ursula von der Leyen as first female Commission President

The economic effects of the COVID-19 coronavirus around the world

How do we make artificial intelligence more humane?

Tackling Youth Unemployment

Remarks by High Representative/ Vice-President Federica Mogherini at the press conference following the EU-China Strategic Dialogue

Reforms in a few countries drive a decline in average OECD labour taxes

A young European voice on Grexit: too high a bill and too big a deal!

Your morning cup of coffee contains 140 litres of water

Scores killed in ‘barbaric’ attack on Mali village, UN chief urges restraint, calls for ‘dialogue’ to resolve tensions

It’s time to gang up: a personal conflict on discrepancies in the medical community

EU allocates €50 million to fight Ebola and malnutrition in the Democratic Republic of Congo

Central Asia: the European Union matches political commitment with further concrete support

Big data is coming to agriculture. Farmers must set its course

UN chief ‘deeply alarmed’ over military offensive in south-west Syria

EU mobilises further €15.2 million humanitarian support for food safety, epidemics preparedness and support to people in conflict areas in Latin America and Caribbean

Antitrust: Commission consults stakeholders on guidance for national courts when handling disclosure information

The sad show of Brexit

UN condemns attack that leaves one ‘blue helmet’ dead in Central African Republic

Global trade is broken. Here are five ways to rebuild it

Consumer product quality: Parliament takes aim at dual standards

Pharmaceuticals spend millions to push TTIP while consumer groups spend peanuts

Parliament toughens its position on banking union

These are the countries where it’s still illegal to get an abortion

‘I don’t like to give up’: veteran UN envoy reveals how two decades of quiet diplomacy gave birth to North Macedonia

Davos on Climate Change: citizens demanding more actions while CEOs tried to balance profit with sustainability

Lack of investment and ambition means Youth Guarantee not reaching potential

A 550 km-long mass of rotting seaweed is heading for Mexico’s pristine beaches

UN rights chief says ‘bar must be set very high’ for investigation of murdered Saudi journalist

Righting a wrong: UN Fund helps thousands of sex abuse survivors rebuild their lives

Scores of Rohingya refugee shelters in Bangladesh destroyed by flooding

Metrics of the Sustainable Developments Goals: Can we trust our data?

Member States and Commission to work together to boost artificial intelligence “made in Europe”

This is how a smart factory actually works

Address by the President Antonio Tajani at the funeral of Nicole Fontaine

As Houthi forces withdraw from key Yemeni ports, UN monitoring chief welcomes ‘first practical step on the ground’

Now’s the time to take up cycling – here are 6 reasons why

To retire at 65, American millennials need to save almost half their paycheck

How a chocolate bar gives hope for a new economy

Commission’s action plan: financial world mandatory links to environmental targets

MWC 2016 LIVE: T-Mobile US reveals 5G trial plans

Cyprus tragedy reveals Eurozone’s arbitrary functioning

Renewal of cross-border aid operation critical to northern Syria: UN relief chief

Recession: the best argument for growth

Business is stepping up its fight against climate change. This is how

Don’t dismiss start-ups founded by millennials. This is how they succeed

UN condemns deadly attack against G5 Sahel force headquarters in Mali

Political solution ‘long overdue’ to protect the children of eastern Ukraine

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