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.

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

What the COVID-19 pandemic teaches us about cybersecurity – and how to prepare for the inevitable global cyberattack

DR Congo: Ebola outbreak spreads to eastern ‘no-go’ zone surrounded by rebels

Mozambique’s Beira city ‘returning to life’, elsewhere UN teams assess damage, deliver assistance

Technology is a force for peace and prosperity. Don’t let its challenges obscure this

There isn’t a single country on track to make the UN’s targets for gender equality

Are we sleepwalking into a new global crisis?

How the EU’s new data-sharing strategy could benefit companies

Inegalitarian taxation on labour haunts Europe’s social model

The built environment has a huge role to play in improving health and wellbeing

Why South Africa is on a path of economic renewal

Why the world is not as globalized as you think

Failure to open accession talks with Albania and North Macedonia is a mistake

How one change to shipping goods could change the way we live

EU citizens disenchanted with Economic and Monetary Union over rising poverty and high unemployment

End Syria fighting to avoid ‘even greater humanitarian catastrophe’

5 shocking facts about inequality, according to Oxfam’s latest report

Nearly $4 billion needed to protect 41 million children from conflict and disaster

Better training ‘a necessary and strategic investment’ in peacekeeping that saves lives: Guterres

Central African Republic: UN chief hails signing of new peace agreement

Wednesday’s Daily Brief: Women boost work profits, saving biodiversity, UK loses Chagos Islands vote, Gaza funding, malaria-free in Argentina, Algeria

Data show EU Economy in a stubbornly subdued state

These 5 start-ups are shaping the future of Africa’s cities

Alcohol abuse kills three million people a year, most of them men – WHO report

Business leaders join UN to rev up sustainable development investments

Job automation risks vary widely across different regions within countries

Victim-centred laws ‘paramount’ to combat online sexual abuse against children

Mosquitoes kill more people every day than sharks do in a century

FROM THE FIELD: Stopping aquatic hitchhikers to safeguard environments at sea

UN chief hopes for new agreement after Israel concludes international observation mission

South Korea once recycled 2% of its food waste. Now it recycles 95%

World food security increasingly at risk due to ‘unprecedented’ climate change impact, new UN report warns

Campaign kicks off with High-level Event on #FairInternships

This is what great leadership looks like in the digital age

800,000 people commit suicide every year: WHO

These are the most innovative cities in the world

Indigenous peoples ‘lag behind on all social and economic indicators’: UN deputy human rights chief

MWC 2016 LIVE: Ford trumpets new in-vehicle system, “fundamentally rethinks” transportation

UN envoy says he ‘is ready to go to Idlib’ to help ensure civilian safety amid rising fears of government offensive

UN migration agency: young Rohingya girls, largest group of trafficking victims in camps

Human rights ‘core to sustainable development’: deputy UN chief

A UN-backed boost for women-run businesses in the developing world

Conflict, climate change among factors that increase ‘desperation that enables human trafficking to flourish’, says UN chief

Camino de Santiago – a global community on our doorstep

European Youth cries out: Sustainable Development Goals ambitious, but lack focus on youth

“A divided Europe is not in China’s interests”, Ambassador Zhang of the Chinese Mission to EU welcomes Brussels

Why we need to redefine trust for the Fourth Industrial Revolution

How two colossal Assyrian icons were recreated using digital tech

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

6 of the world’s 10 most polluted cities are in India

Iceland won’t talk with Brussels about EU accession

Competing with Apple and leading innovation: Google’s world replies to EU on android charges

Workers want flexibility. After COVID, they just might get it: Poll

Myanmar Government side-lining democratic reform, resorting to military era repression: UN expert

It’s just electronic cigarette, don’t worry?

Europe must remember its past to build its future

Haitian Foreign Minister calls for development reboot to close ‘striking gap’ between promises and action on ending poverty

How Germany strives to mold ECB’s monetary policy to her interests

‘Informing is not a crime’ UN chief calls for better protection of journalists, press freedom

Idai disaster: Stranded victims still need rescue from heavy rains as UN scales up response

Stop violence against women: Statement by the European Commission and the High Representative

More Stings?

Advertising

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