“Α Frugal Europe is self-defeating and perpetuates a disappointing trend.”

On the 19^th of May, the French President Emmanuel Macron, and the German Chancellor Angela Merkel, jointly announced a 500 billion-euro Covid-19 aid package.

The initiative got the EU Commission’s support and approval, with its President Ursula von der Leyen announcing a 750 billion-euro aid package two days ago, 500 of those being grants and only 250 being made available as loans, after the “Frugal Four’s” objections.

The group of the four nations, comprised by the Netherlands, Sweden, Denmark, and Austria, have been mobilized to block Macron’s and Merkel’s proposal, since its announcement last week.

They fear that it will open the door to debt mutualization, plus they object to offer help “for free” as they see it. From their point of view, financial help should be attached to terms and conditions, payback with an interest of course.

What we can get from their stance is that the UK was not the only member state acting as a roadblock to closer European integration. Now that is gone, the cover of many states that were hiding behind British euro-skepticism is being blown away.

Their interests are not for the common good, rather their own and only. Debt mutualization is inevitable when sharing a single currency, the euro. That was the plan, that is what the EU’s forefathers dreamed and aimed, a single currency that would lead to a European Federation.

Additionally, the current crisis was not caused by any national mismanagement, or corruption and it has affected everyone equally. Even Germany and the Netherlands will benefit from the 500 billion grants, as they have been badly affected by the corona virus outbreak.

If these countries, two of which are euro members already and one-Sweden, which is obliged to join by their accession treaty, yet they are dragging their feet for 30 years, are not happy with this goal, or just do not share it any longer, they can follow Britain and leave.

In the past they blamed Greece, now they have a problem with Italy and Spain, in the future if they can continue with this demeanor, who they will have to blame? Most likely it will be Bulgaria and Croatia, two countries about to join the euro within the next 2-3 years.

Bulgaria has already been blocked by the Netherlands from joining the Schengen area, so the Dutch are not making themselves too popular these days in EU. They are scapegoating weaker nations to excuse their financial nationalism and self-serving interests.

Ten years ago, their finance minister Jeroen Dijsselbloem acted like a Spanish Inquisitor towards Greece, demanding the country to open its financial books and records, for the Troika to examine. 

Greece ended up even more indebted with consecutive bailouts, and together with Ireland, Portugal and Cyprus they were forced to bear the burden of saving the European banks, which mainly were German and French, and bailing out the euro-zone.

Europe’s periphery in other words, became fiscal dumping ground for euro-zone banks’ debt. Now the Dutch refuse to share the debt burden, while previously they were happy forcing others to do so.

Perhaps we could also now demand them to allow us to have a close look into their finances, and see how many millions in lost taxes from other countries they earn, while acting as a tax haven and then we will see who’s money it is to give.

The justification for their actions back then was that Greece lied about its debt to enter the euro-zone. Well I am sorry, it is highly unlikely that the rest of European leadership did not know about this already and in addition, that Greece is the only nation that acted in such manner.

Alternatively, we could ask every member to allow EU institutions to scrutinize closer their finances, as they should. However, I am sure it will not be Greece objecting to this, rather Germany, the Netherlands and other richer EU member states. And usually, it is the prosperous nations that break EU laws first.

Maybe it is about time for European leaders. to tell the truth to their citizens about EU budget fees and the benefits of their membership for their countries. When Greece joined, in fact whenever one less developed country becomes a member, richer nations buy up most of their resources and assets.

Since the ‘80s and Greece’s admission, most of the country’s industries have passed into German, French and other countries’ hands. So, while the Netherlands like to get all the benefits of EU membership and maintain access to other members’ markets, they do not like to share the profits that they make.

And not only that, but they accuse them of being corrupt and like to belittle them in their press with derogatory articles in magazines, like one published recently. The latest cover of Elsevier Weekblad, a Dutch economically liberal and socially conservative magazine, has stirred controversy across Europe.

With a cover that resembles a Nazi propaganda press release, it portrays once again dark-haired people relaxing and enjoying wine and a coffee, while blond individuals working hard. The image is accompanied by a title against the 500 billion deal, while stating “No more money to South Europe”. This is preposterous and outrageous; we have been in this position too many times. 

Ten years ago, we had the Germans portraying the Greeks, together with all the PIGS countries in same manner and as a response, Greek and Spanish media were portraying German officials as Nazis, which was the lowest point Europe has reached since WW 2.

That is not what the founding fathers of the EU have envisioned. What they wanted was to unite our continent, for states to share wealth and resources and enjoy similar standards in wealth, freedom, and social rights.

The Macron-Merkel proposal should have been welcomed and treated as a long-delayed landmark in European unification. It is something long overdue, since sharing the same currency requires inevitable and eventual deeper fiscal integration.

To start a war with Europe’s south once again has no justification. Greece and Portugal have done their homework, Italy is a G8 nation, a net contributor to the EU budget and a main world economy. Much more than the Netherlands. The Dutch cannot treat them the way the treated the Greeks and similarly, why should they any other member state.

Besides, why they bother only about Italy and not their frugal buddies the Danish, or any other from this group and their mishaps? I do not remember them complaining about the Danske Bank scandal as much, where Russian money were laundered and siphoned into Denmark and the UK primarily, through the bank's Baltic branches in Estonia, Latvia and Lithuania. 

There is not as much mistrust in that direction, only towards the southern states, even though Russian money have been flowing into Europe since the euro-zone crisis and not only the Danish did not lose their reputation, but Europeans cry foul whenever there is Russian meddling in Europe. Perhaps if we stopped harboring their dirty money, we could achieve more in dealing with their oligarchs. 

In the future, we will all need to compromise and realize that we are entering a world in which Europe cannot rely on anyone but itself, a much different reality. We need to collectively utilize our resources and help every country in Europe to reach the same living and economic standards.

 Going around in circles and blocking or postponing decisions that should have been implemented decades ago since the launching of the euro, is short-sighted and defeatist. And the Dutch together with the “Frugal” collaborators, are so disappointing right now.