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

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

Promoting gender equality a ‘crucial contribution’ in effort to restore, protect our planet’s oceans

Syria: A bloody tracer of Trump – Putin rapprochement

Ebola in DR Congo: conflict zones could constitute ‘hiding places’ for the deadly virus – WHO chief

7 steps to becoming a ‘CEO Academy’

EU budget: Commission helps prepare new Cohesion programmes with Regional Competitiveness Index and Eurobarometer

INTERVIEW: Poverty, education and inclusion top new General Assembly President’s priority list

Things are bad and getting worse for South Africa. Or are they?

Second Facebook-Cambridge Analytica hearing: impact on privacy, voting and trust

This is how rice is hurting the planet

A Sting Exclusive: “Climate change-the biggest global health threat of the 21st century, yet overlooked in climate negotiations?” IFMSA wonders from COP21 in Paris

Libya stands at a ‘critical juncture’, UN mission head tells Security Council

Finland must focus on integrating migrant women and their children to boost their contribution to the economy and society

IMF: The global economy keeps growing except Eurozone

Senior UN children’s advocate says they ‘should never be targeted by violence’

Why do US presidential elections last so long? And 4 other things you need to know

Saving the whales is more important than planting trees to stop climate change. This is why

Parliament ready to fight for a different EU budget

UN experts cite ‘possible exploitation’ of workers hired to clean up toxic Japanese nuclear plant

Young people worldwide can ‘determine the future of migration,’ says UN senior official

Africa must become more resilient to climate risk. Here’s how

LGBTQI+ and medicine

Haiti stands ‘at the crossroads’ between peacekeeping, development – Bachelet urges strengthened ‘human rights protection’

How Abu Dhabi found a way to grow vegetables in 40-degree heat

Australia now has 25 million people. Will it choose to keep growing?

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

How to help companies become global defenders of LGBTI rights

Brain drain 2017: why do medical students need to emigrate to become doctors in 2017?

EU Migrant Crisis: Italian Coast Guard Headquarters and Italian Navy to give host national opening addresses at Border Security 2016 in Rome

This Mexican company is making biofuel from cactus plants

Main results of EU-Japan summit which took place on 25/04/2019 in Brussels

The Ultimate Career Choice: General Practice Specialist

Altruism can be good for business, as these companies show

Sanctions on Russia to be the biggest unity test at this European Council

Germany hides its own banks’ problems

EU fundamental rights under threat in several member states

Can privatisation be the panacea for the lack of growth in Europe?

Dutch voters reject EU-Ukraine partnership and open a new pandora’s box for the EU

Why European manufacturing SMEs in the South face fatal dangers

A Sting Exclusive: “China is Making Good Stories not Bad Ones”, Ambassador Yang highlights from Brussels

Terror attacks strike people ‘from all walks of life, the UN included’

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

‘New tech’ business model threatens decent work conditions, warns UN

The new assembly lines: Why AI needs low-skilled workers too

Glaringly false reassurances about the repercussions of the EU-US free trade agreement

From drones to health data, how Japan can power ahead

UN chief hears ‘heartbreaking accounts’ of suffering from Rohingya refugees in Bangladesh; urges international community to ‘step up support’

How the world can gear up for the fight against cancer

If you live in a big city you already smoke every day

Finland, Switzerland and New Zealand lead the way at teaching skills for the future

Africa-Europe Alliance: first projects kicked off just three months after launch

European Court rules that ECB’s OMT program of 2012 is OK; not a word from Germany about returning the Greek 2010 courtesy

General Elections in Spain: Twitter organises the first digital debate to empower young people.

The Commission accused of tolerating corruption and fraud in taxation

Sexual education in a school at the Brazilian Amazon

Schengen is losing ground fast revealing Europe’s clear inability to deal with migration crisis

China-EU Relations: Broader, Higher and Stronger

4 ways Africa can prepare its youth for the digital economy

EU-Western Balkans summit in Sofia

Eurozone banks to separate risky activities: Can they stay afloat?

Walk, cycle, dance and play – UN health agency recommends new action plan for good health

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