Thursday, January 12, 2012

My ideal future economic model for Europe!

www.economist.com

Our leaders are debating, attending summits trying to find a solution for the current economic crisis. They want to decide which way forward, what to do to save the euro and the European economy. The citizens are looking up to them desperately, in hope of any good news, something that will lift the heavy load of austerity from their shoulders.

In my opinion it is all in vain, simply because our leaders do not have the guts to do what needs to be done: change the economic system of the Continent! Our economies are capitalist, Market based and overall I accept capitalism as a style to base our economy on. But this type that we have as we've seen recently simply does not work for me, not for the ordinary citizens!

We have given the Markets and the Banks all freedom, they have become way too powerful and in fact they are endangering our societies and their coherence. Market economy is plain gambling.

Some powerful people are gambling on countries, companies, commodities and some of them grew to be so powerful, that can make whole countries go bankrupt. They own more money than many of the smaller nations of this World. So how can you stop or regulate such people, make sure that the future of our children is not in the hands of the powerful few?

We see the "peripheral" European states being pushed into the jaws of the IMF, that has done so much damage in the economies of Africa and Latin America. Who decides which country is worth investing in, keeps its AAA, which one must be downgraded and with what criteria?



The current economic system, the Market based free and unregulated capitalism, is set up by gamblers; a culture of easy money! Who controls the Markets, the IMF and the rating agencies? They all are based over the other side of the Atlantic, if you ever wondered.



Wouldn't be fairer to establish such institutions across the globe and have a variety of standards, not just an one sided point of view? We must acknowledge the influence of various lobby groups, investors and supporters of the campaigns of each political party. The lobbies that surround the EU headquarters in Brussels, also play an important role.

For example with money from Europe and the EU subsidies, Greece has now a powerful farming lobby that is not allowing any real change in the country’s economy. But if you look at the map of our Continent, Greece is a mountainous country with very few patches of green, mainly found in Thessaly, Macedonia and Thrace. Yet farming is traditionally one of the main economic sectors of this country, but it is necessary to to diversify it for a more stable economy.


Instead of having some countries leading Europe, sucking up all industrial and economic activity in the Continent and leaving the smaller states fighting for scraps, wouldn't be nice to have a stable economic model for all? Not an elitist one with few rich countries supporting the "peripheral" ones, after having them on social welfare in the form of subsidies for decades.

A solution would come in the form of a federal Europe, with a collective Government that invests in every country and allows it to exploit its natural resources. For jobs, stability, progress and prosperity of its own people first and then to supply the rest of Europe with the best of what each country can provide. Fish from the north, vegetables from the south, minerals from Greece, agriculture from other greener spots of Europe, wood from Scandinavia, etc.

Look at the European map and see which countries are greener; France, Poland, Romania, Hungary. We should be forwarding CAP funds over there and make them the breadbasket of Europe. Greece can still produce only what other regions can not because of climatic restrictions. Then it can provide Europe with its mineral resources, wind mills, solar panels for energy and other resources.

Why not help or encourage Greece to set up a green renewable industry, instead of remaining a limping farming country? Investments in Greece can transform its economy in becoming more industrialized and compatible with those of other Euro-zone countries. 

We can not compete with France as we do not have a huge land mass like they do, that can be farmed. Them and Poland and Romania have vast farm lands. Establishing a well organized farming industry in the new states can kick start their economies, until they decide to invest in other fields later on. Once their economies stabilize they can diversify it.

Perhaps because the farming lobby in the old 15 EU states is too strong, little change is taking place. Just like the fisheries lobby is too strong in Iceland and keep the country out of EU. People that are milking the system and benefiting form the current status quo, are protesting to any change. And our media often are being paid to serve the interests of these elites and form a sympathetic public opinion. 


Europe should provide and protect its people. We must have equality among the member states and investments focused on where they are needed, to exploit the continent’s natural resources collectively. We can have stability, growth, peace and prosperity for all Europeans, not just a bunch of lazy marketers and bankers.


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