The Peoples are missing from EU’s monetary union

The European Economic and Social Committee (EESC), 500th Plenary session - 9-10 July 2014.

The European Economic and Social Committee (EESC), 500th Plenary session – 9-10 July 2014.

The disenchantment of the 28 European Peoples with their Union stems from the special care the EU institutions clearly show for the financial sector aka the banks and not for the unemployed. To put it differently so as the Brussels bureaucrats and the decision makers in Berlin and Paris can understand; the European Economic and Monetary Union (EMU), the most important achievement of the EU after the single market, is now understood by most Europeans to be devised and plentifully financed in order to make sure that the ‘systemic’ lenders will never die. By the same token, there is no money left to be invested in the real economy to counter the unseen before unemployment rates, which torment most member states.

The European Economic and Social Committee (EESC), one of the two EU institutions which authentically express the will of the people (the other being the European Parliament) has grasped this reality. At its 500th plenary session on Thursday 10 July, the EESC adopted an opinion “urging Europe’s new leaders to take action to complete European Economic and Monetary Union (EMU)”. The relevant passage of the Committee’s Press release also states straightforwardly, “Shaken by the economic and financial crisis, Europe needs to emerge stronger by stepping up its fight against stagnation and unemployment”. To be noted, the EESC is not made up by revolutionaries. It represents the EU’s workers, employers and other civil society organisations.

A groundbreaking ‘opinion’

EESC’s opinion puts forward specific proposals and solutions “to achieve a more robust EMU governance structure, leading to more growth and jobs in the short run, to a full economic union as a second step and ultimately to a political union as a necessary point on the horizon. This is a timely call in the light of the reshuffle currently underway in the EU institutions”. Presently, the European Council, which directly voices the choices of governments, at least of the most powerful of them, considers that the EMU has been accomplished, after the agreement reached with the previous European Parliament on the workings of the European Banking Union.

The EESC however thinks differently. One of the two rapporteurs of the above mentioned ‘opinion’, Joost van Lersel (Employers’ Group, NL) warned that, “The Economic and Monetary Union, which is far from being accomplished, is indispensable to re-create confidence in the European project and makes it sustainable”. Van Lersel is not a Eurosceptic or an extremist. He represents the European employers and comes from the Netherlands, a core EU country which irrevocably has tied its future with the Union. Indisputably then, his point that the EMU “is far from being accomplished” carries a very special weight.

One trillion later

Incidentally EESC’s Opinion came only some days after the Governing Council of the European Central Bank decided to hand out to banks one more trillion euro. In view of it, European Sting writer Suzan A. Kane concluded that “the ECB may once more be planning a new covered operation, again to support the Eurozone banks, with freshly printed money at almost zero interest rate cost to the lenders. This sounds very logical, if one considers the real meaning of the fact that today Europe has made depositors responsible of the reckless, greedy and gangster behavior of bankers. If their banks fail due to their insatiable appetite for money, depositors are now asked to foot the bill as it happened in Cyprus. If depositor money is not enough, taxpayers will cover the rest. The Bank Resolution Fund instituted by the European Banking Union and in eight years expected to be capitalized by the banks themselves, is not enough to cover the default even of a small peripheral bank, let alone the holes of the ‘champions’”.

A ‘diplomatic’ bomb

The EESC didn’t go as far as to openly denounce the ECB decision as making a gift of an additional trillion of euro to bankers. The Committee has to follow a more diplomatic line. Still the EESC denounces the EMU as incomplete, which is quite a radical statement. What a better proof of that than the new trillion the ECB just handed out to bankers, at near zero interest rate cost. If the EMU was accomplished and the banking union worked well, why keep handing out to bankers trillions? Mind you that the major Eurozone lenders, mainly of German and French ‘nationality’, have already received more ‘refinancing’ money at almost zero interest rate plus some bulky direct subsidies.

The French and German reckless creditors have been saved by the ECB when the Eurozone financial crisis came to climax in the spring of 2010. The ECB spent then about €150 billion to buy from the bankers their ‘red’ loans to Greece, Ireland, Portugal and Spain at prices much higher than their market values. Not to forget that apart from it Eurozone lenders regularly receive trillions from the ECB in ‘refinancing operations’ at close to zero interest rate cost.

There is no doubt that the European Monetary Union is designed by the EU Council aka governments, and is unbelievably generously financed by the ECB for the sake of banks. At the same time growth and unemployment in real economy are left out in the cold. In half of Eurozone countries unemployment had practically never reached such levels as it has now, at least not after WWII. That’s why the EESC states uncompromisingly that “The Economic and Monetary Union, which is far from being accomplished and is indispensable to re-create confidence in the European project and make it sustainable”.

True, the European project is not sustainable without more investments in growth and jobs.

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

Eurogroup: IMF proposes Germany disposes

What will it take for the world’s third-largest economy to empower women?

Latest tragedy in the Mediterranean claims over 100 lives – UN refugee agency

New energy security framework will help meet growing needs in East Africa, sustainably – UN economic wing

The world is too complacent about epidemics. Here’s how to change

Parental leave: why we can’t wait a century for equal rights for women

The Sichuan Province of China presents its cultural treasure to the EU

Make progress or risk redundancy, UN chief warns world disarmament body

State of the Union 2018: The Hour of European Sovereignty

What Ghana can teach us about integrating refugees

UN appeals for international support as flood waters rise in wake of second Mozambique cyclone

‘Continuing absence’ of political solution to Israel-Palestine conflict ‘undermines and compounds’ UN efforts to end wholesale crisis

These technologies are playing a major role at the Cricket World Cup

There are now four competing visions of the internet. How should they be governed?

In tech-driven 21st century, achieving global development goals requires closing digital gender divide

Working together to end the AIDS-HIV pandemic

UN food agency begins ‘last resort’ partial withdrawal of aid to opposition-held Yemeni capital

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

We can’t tell if we’re closing the digital divide without more data

Safer products: stepping up checks and inspections to protect consumers

How transparency can help the global economy to grow

Plastic is a global problem. It’s also a global opportunity

Crowdfunding: what it is and what it may become

Do we really understand the value of independent journalism?

The Sting’s Team

OECD will follow Canadian proceedings addressing allegations of political interference in foreign bribery prosecution

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

The EU Parliament and the ECB unknowingly or unwillingly fail to protect our financial assets

Young activists do the talking as UN marks World Children’s Day

IFMSA and IPSF on the Health of Migrants and Refugees

Do the EU policies on agro-food smell?

How traditional Islamic giving can play a role in the future of aid

For video game addiction, now read official ‘gaming disorder’: World Health Organization

European Court of Justice to Google: It is #righttobeforgotten but not #righttoberemembered

Young people meet in Malta to shape the future of Europe

Britain heading to national schism on exit from EU

Essential services on verge of shutdown in Gaza as emergency fuel set to run out

An American duel in Brussels: Salesforce against Microsoft over Linkedin deal

How solar is powering the Middle East towards renewables

From violence to dialogue: as land conflicts intensify, UN boosts efforts to resolve disputes through mediation

G20 LIVE: Fact Sheet from the G20 Leaders Summit and key outcomes (G20 Antalya 2015 Summary)

Trump beats Clinton but Americans will learn the hard way that the US can’t change with an election

How drones can help rural Africa take flight

It’s time for cybersecurity to go pro bono

Reducing disaster risk is a good investment, and ‘the right thing to do’, says Guterres

Commission launches debate on more efficient decision-making in EU social policy

Facility for Refugees in Turkey: €127 million to boost EU’s largest ever humanitarian programme

€200 million to promote European agri-food products in and outside the EU

Eurozone plans return to growth

THE ROAD TO GANESHA

Barriers to healthcare: are they real?

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

How UN cultural treasures helped set the stage for Game of Thrones

EU-Singapore free trade deal gets green light in Trade Committee

Starbucks and FIAT again under Commission’s microscope: is Europe ready to kick multinationals out of the house?

India can soar in the robot age. This is how

UN Security Council urged to act against ‘worst-case scenario’ Syria’s war-battered Idlib

Draghi’s 2018 compromise: enough money printing to revive inflation and check euro ascent

Draghi cuts the Gordian knot of the Banking Union

EU commits €9 million in humanitarian aid for the most vulnerable families in Myanmar

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