Family incomes stagnate in the EU; people excluded from ‘moderate recovery’

Pierre Moscovici, Member of the European Commission in charge of Economic and Financial Affairs, Taxation and Customs (on the right), gave a press conference on the 2015 Autumn Economic Forecast. He said that the economic recovery in the euro area and the European Union as a whole is now in its third year. On the left Margaritis Schinas, Chief European Commission Spokesman. (Date: 05/11/2015. Location: Brussels - EC/Berlaymont. © European Union, 2015/Source: Jacquemart Jennifer,Shimera ,EC - Audiovisual Service ).

Pierre Moscovici, Member of the European Commission in charge of Economic and Financial Affairs, Taxation and Customs (on the right), gave a press conference on the 2015 Autumn Economic Forecast. He said that the economic recovery in the euro area and the European Union as a whole is now in its third year. On the left Margaritis Schinas, Chief European Commission Spokesman. (Date: 05/11/2015. Location: Brussels – EC/Berlaymont. © European Union, 2015/Source: Jacquemart Jennifer,Shimera ,EC – Audiovisual Service).

The Brussels Eurocrats are trying to convince us all that the European economy, after the 2008-2010 fallout, is now on the right track towards an era of growth and financial security. However, real people out there are still waiting to taste the benefits of this impalpable improvement. Apart from the fact that Eurostat, the EU statistical service, has found that unemployment is much larger than the official rate reported, real incomes and consumption have not recovered after the abrupt fall of 2009-2010. Let’s follow the facts.

What is at stake here is the welfare of real people, who sweat under the new ‘relaxed’ employment forms, but still are threatened by income impoverishment and social exclusion. Not to say anything about the unemployed. According to Eurostat, people without a job are almost double than the official rate. The European Sting has presented this anomaly on 21 January 2014.

Twice as much unemployment

The relevant article concluded as follows: “Eurostat, the EU statistical service, revealed that the true unemployment rate in Eurozone during the third quarter of 2013 was much higher than the ‘officially’ recognized percentage of 11.5%, according to the definition of UN’s International Labor Organization. Including the three forms of de facto but not recognized by the ILO unemployment definition or ‘halos around unemployment’ as Eurostat calls it, the people without a job in Q3 of 2013 were 21.2% of the labor force. This is almost the double than the official rate”.

In any case, the key variable which by and large determines the welfare of people is the ‘real growth of household income and consumption per capita’. This is a good estimate of the actual betterment or worsening of welfare conditions of households. The term ‘real’ means that incomes and consumption have been normalized for inflation (deflated). As for the word ‘growth’, during the last six years, this was, most of times, a euphemism. Real incomes and consumption have been contracted instead of growing. In fact, for the mathematical economists income losses are negative growth.

Stagnant incomes

Nevertheless, there has been a good time for real household income and consumption. During the brief period of 2005-2007 those two variables had been continuously increasing but this tendency ended at the beginning of 2008. The same story is also told by the evolution of the total retail sales. The relevant Eurostat diagram is very eloquent. Retail sales kept increasing until the beginning of 2008. Since January of that year their volume (deflated amounts) kept falling up to March 2013. From that point in time on retail trade turnover started increasing again followed also by real household income and consumption. Unfortunately this dual improvement, although negligible as percentages, ended at the first quarter of 2015. Real household income and consumption per capita (seasonally adjusted) stagnated all along the first half of this year. This tendency has, very probably, continued during the second half of 2015 but we will be informed about it in a few months time.

Still, the Brussels bureaucrats insist that the EU and the Eurozone economy are on a growth path. Last week, the European Commission published its “Autumn 2015 Economic Forecast”, maintaining that there is a ‘moderate recovery’ for the European Union and the euro area. If this was so, the European Central Bank wouldn’t have suggested that it is ready to flood the financial markets with hundreds of billions of freshly printed euro, in order to avoid deflation (negative inflation) and revive the economy.

Incomes increased by … 0.1%

According to Eurostat, “In the euro area, in real terms, household income per capita increased by 0.1% in the second quarter of 2015”. The same source estimates that: “In September 2015 compared with August 2015, the seasonally adjusted volume of retail trade decreased by 0.1% in the euro area”. The evolution of household income per capita and retail sales by being good approximations of the general welfare, betray that in 2015 there has been an obvious stagnation. Very simply, the main cause of that are the totally wrong economic policies followed after the financial crisis of 2008-2010.

Germany repenting?

With Germany being the main ‘brain power’ behind the economic policies applied in Eurozone during the past five-six years, Berlin has to assume full responsibility for the present economic situation of Europe. It seems though that this must be the case, because Germany has stopped blocking the new extraordinary monetary measures proposed by the ECB President Mario Draghi.

The question now is whether Berlin’s repentance will be enough for the EU economy to revitalize and offer more opportunities to those threatened by impoverishment or already on the breadline. It’s highly probable that it’s already too late to redress the real economy with monetary measures. The freshly printed money will be soaked up by the banks and be rather used to cover their crimes.

No tears will be shed for the stagnating real house hold income and consumption whatsoever.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Stopping antimicrobial resistance would cost just USD 2 per person a year

Cameron’s “No Brexit” campaign wins top business support as Tory front breaks

Seaweed, enzymes and compostable cups: Can ‘Big Food’ take on plastic and win?

A new European banking space is born this year

The EU Consumer Policy on the Digital Market: A Behavioral Economics View

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

Can the US deal a blow to EU and Russia together over Ukraine?

Do men and women really have different leadership styles?

The German banks first to profit from public subsidies of trillions

How leaders can use ‘agile governance’ to drive tech and win trust

Right2Water initiative: Is the Commission ready to listen to citizens?

Removing sweets from supermarket checkouts could help fight obesity

EU budget: Commission proposes to increase funding to support the environment and climate action

EU-China relations under investigation?

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

Costa Coffee products (Copyright: Costa Coffee; Source: Costa Coffee website, Press area)

The start of the “Caffeine rush”: Coca-Cola acquires Costa Coffee days after Nestlé-Starbucks deal

‘Time is of the essence’ for refugees on Greek islands – UN agency

The JADE Spring Conference 2017 is casting its shadows before

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

COP21 Breaking News_04 December: Launch of CREWS, climate risk & early warning systems

Feeding families remains complex task in war-torn Syria – UN relief agency

FROM THE FIELD: How the smell of fresh bread transformed one refugee life

ECB: The bastion of effective and equitable Europeanism keeps up quantitative easing

High-technology manufacturing saves the EU industry

EU: The Member States to pay for national banking problems

MWC 2016 LIVE: Mobile World Congress shows off planes, trams and automobiles

Is deflation a real danger for Eurozone?

To Brexit, or not to Brexit…rather not: 10 Downing Street, London

A Sting Exclusive: “Delivering on the Environmental Dimension of the new Sustainable Development Agenda”, Ulf Björnholm underscores from UNEP Brussels

EU budget: the Common Agricultural Policy beyond 2020

Saudi Arabia: UN experts push for prompt release of women human rights defenders

Finally an answer to the hottest question of European youth today: How to make sure Juncker’s Investment Plan works for youth

UN gender agency hails record-breaking number of women in new US Congress as ‘historic victory’

MEPs to vote on overhaul of road transport rules in July

YO!FEST ENGAGES 8,000 YOUNG EUROPEANS IN FUTURE OF EU

Youth2030: UN chief launches bold new strategy for young people ‘to lead’

Parliament compromises on Banking Union but sends market abusers to jail

The succesful cooperation

Polish PM chooses to focus on economy, amid questions on rule of law in Poland

Education and Training: where do we stand in 2014?

What makes America the world’s most competitive economy?

Sustainability, peace, security ‘best guarantee against instability’ Guterres to Security Council

What we need for a better European Solidarity Corps

G20 LIVE: World Leaders in Turkey for G20 Summit. Global Economy will be discussed in Antalya

How will Brexit affect higher education in the EU?

The New Year 2016 will not be benevolent to Europe

The US bugged Europe: Is this news?

EU should promote immigration as a humanitarian issue in order to provide a more permanent solution

The European Parliament fails to really restrict the rating agencies

Drowning in the Mediterranean this summer? Many happy returns

Cyber defence: MEPs call for better European cooperation

Is Eurozone heading for disinflation?

The US + Britain trivialize mainland Europe, NATO and the EU

5G mobile is nearly here – but we should share networks to make it affordable

Women’s rights in Asia – how far have we come?

Trying to cure bank cancer with analgesics

Migration Crisis: how to open the borders and make way for the uprooted

Data show EU Economy in a stubbornly subdued state

MEPs propose more transparent legislative drafting and use of allowances

The next EU President will first have to drink his tea at Downing Street

European Union: From financial consolidation to deeper political division

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