| live2b3 |
|
| prosperity |
sustainability |
peace |
| Prosperity and sustainable living... the only path to social harmony, social justice, environmental responsibility and peace.
| home | european union
| 2b3.023 << page
EURO CRISIS |
| The project of the Euro has been pushed by European socialists to enhance their dream of a central European state. |
Any one with any intelligence would have seen this coming. When times are good everyone is happy to get along and share the succcesses, when things go badly the barriers are raised and self-interest comes to the fore. This is exactly why the European experiment will never work.
The crisis of the Eurosystem has shaken financial markets and governments. The Euro has depreciated strongly against other currencies at a pace worrisome to political and financial elites. They fear losing control. The monthly bulletin of the European Central Bank (ECB), published in June of 2010, acknowledges that the European banking system was on the brink of collapse in the beginning of May. Several European governments, including France, were on the verge of default. In fact, default risks for some European banks, as measured by credit default swaps, surged to higher levels than they did during the panics that followed the collapse of LehmanBrothers in September of 2008.
In reaction to the crisis, the political class has tried desperately to save the socialist project of a common fiat currency for Europe. They have been successful—at least for the time being. After intense negotiations, an unprecedented €750 billion “rescue parachute” has been created to support European governments and banks. At the same time, however, the ECB has started what many had regarded as unthinkable before: the outright purchase of government bonds, an action which undermines its credibility and independence. The public and market perception of the monetary setup of the European Monetary Union (EMU) will never be the same.
Resistance to these unprecedented measures is on the rise, especially in countries with traditionally conservative monetary and budget policies. A poll in Germany showed that fifty-six percent of Germans were against the bailout fund.
It is not surprising that the majority of Germans want to return to the Deutschmark. They seem to understand intuitively that they are at the losing end of a complex system. They see that they are saving and tightening their belts on a regular basis while other countries’ governments embark on wild spending sprees. A prime illustration is the “Tourism for All” program in Greece: the poor receive government funds toward vacations. Even amid the crisis, the Greek government continues the program, albeit reducing the number of subsidized vacation nights to two. The Greek government also upholds a more generous public pension system than Germany does. Greek workers get a pension of up to eighty percent of their average wages. German workers get only forty-six percent, a number that will fall to forty-two percent in the future. While Greeks get fourteen pension payments per year, Germans receive twelve.
Germans assess the bailout of Greece as a rip off. The bailout makes the involuntary transfers embedded in the EMU more obvious. But most people still do not understand exactly how and why they pay. They suspect that the Euro has something to do with it.
The project of the Euro has been pushed by European socialists to enhance their dream of a central European state. But the project is about to fail. The collapse is far from being a coincidence. It is already implied in the institutional setup of the EMU, whose evolution we will trace in this book. The story is one of intrigue, and economic and political interests. It is fascinating story in which politicians fight for power, influence and their own egos. |
|
The most important reforms are described with full details of policy and financing in the section [ principles of change | A MANIFESTO FOR CHANGE ]. These reforms are absolutely necessary to initiate positive reform of our political systems. Policy in all areas of state involvement needs urgent attention but must be part of an ongoing process of consensual change through a system of direct democracy and consultative referendum.
|
|
|
 |
|
|
|
|
We are NOT a political party
but a movement for social economic reform. We want to help restore
democracy in Europe and put public money and political power back in
the hands of all citizens. We want an economy that works for
the people and not for the ruling elite. Simply
spread the word to become part of the movement and together we can
be the catalyst for change.
|
Read this text in your preferred language by
'clicking'' on the appropriate language flag above. Help us
strengthen and spread the message. You
can help by being a
translator or a moderator - we need both. If you can, translate any of
the
web-page articles to your native tongue - thanks.
| live 2b3
...and help build a better world.
A social economic model for sustainable living in a people and resource based society
- it's time for change.
Written by: Philipp Bagus |
| info@live2b3.org |
http://www.live2b3.org |
|
