While the European people are suffering from the ongoing economic crisis, they look up to their leaders for a solution. They want to stop living in austerity, losing their jobs, seeing their incomes shrink.
They want a better, secure future for them and their children. They wish to be able to make plans and provide for their families. But who listens to them?
Europe's leaders seem to have lost touch with their citizens reality. People need real solutions and fast. We are forcing a whole generation of European young people into a dead end. So what is our leader's response to our needs?
Well one of these "solutions" was the launching of the ESM (European Stability Mechanism). It is an international organization located in Luxembourg, which provides financial assistance to members of the euro-zone in financial difficulty. The ESM was established on 27 September 2012,
and will function as a permanent firewall for the euro-zone with a
maximum lending capacity of €500 billion.
It will replace the two
existing temporary EU funding programs: the European Financial Stability Facility (EFSF) and the European Financial Stabilization Mechanism (EFSM). All new bailout applications and deals for any euro-zone member
state with a financial stability issue, will in principle from now on be
covered by ESM, while the EFSF and EFSM will only continue to handle
transfer and monitoring of the previously approved bailout loans for
Ireland, Portugal and Greece.
In other words Greece, Ireland and Portugal can not
have their debt weights lifted right now. Only Spain, Italy and any other country that hasn't received a bail out package so far, will immediately
benefit from this. Greece will be able to join only if they fulfill
the austerity plan and return to the markets. So there is no soothing for the
poor Greek folk in their troubles, for the foreseeable future.
The very establishment of such organization clearly shows where Europe is heading. Our leaders' agenda is not finding solutions to our problems or proceeding with real reforms. In Greece for example the public has experienced only severe cuts and reduction of their incomes. Real reforms like those needed in the taxation system have never occurred.
Even the IMF has apologized to Greece, because apparently their estimations were wrong and the cuts imposed on the country too severe! So instead of helping the country, they have actually pushed it in deeper recession. But there is no schedule to reverse the cuts or lessen the burden for the Greek people. Was it a genuine mistake or is there an agenda behind it?
If the IMF that is part of the Troika can make such tragic "mistakes" that have a huge impact on the fortunes of European people, can they be trusted? Despite the huge sacrifices that the Greek, Irish, Portuguese and other nations had to make, the crisis is only getting worse and there is no end to this tunnel.
Currently Spain and Cyprus are in talks with the Troika for loans that will allegedly help them come out of their difficulties; or will they? If what happened to Greece is going to pass without any consequences for the people who made these mistakes, then is the Troika acting for the best interest of the European citizens?
We are witnessing the greatest financial experiment in the modern history of Europe. Austerity seems to be unavoidable for European states. It is clearly an agenda, not a solution. Our leaders are trying to change the way we work, the way we live, think of our future and our expectations. Europe is being redesigned for a new reality; but what will this new reality going to be?
That is confirmed by the very establishment of the ESM. Because every new country that wants to be
part of this plan and avail of its benefits, it has to accept austerity and the regulations coming from the IMF. In that way our governments legitimize austerity all over Europe from now on!
While I totally understand and support that the euro-zone needs to be stabilized and the debt crisis contained, I do not think that the solution is imposing austerity on the weaker states. Our leaders seem to think that the only way to deal with the problem is by pleasing the creditors and giving full control to bankers and unelected officials.
All the drastic plans in Europe to save our economies occur in the financial sector only, not in the political. Clearly that sector is easier to change, but in this way we are only finding temporary relief to our woes. Every suggested "solution" is an experiment that when fails, the European people have to deal with the consequences.
So should I be happy that our leaders have agreed to establish the ESM? Well it provides easy access to loans and help to states in need, but with huge costs and conditions that come from people who made serious mistakes at least once, as the Greek case shows.
The only good thing about it I find,is that now our leaders will have overseers to forbid them making irresponsible financial choices. Once under the watchful eye of the Troika, there is little room for mistakes or excuses. Now if the Troika's solutions are of any real help, that is another issue. Ideally, I would not support for each state to surrender its economic sovereignty. But since we are all in the Common Market and use the same currency, there is not much of a choice.
The only good thing about it I find,is that now our leaders will have overseers to forbid them making irresponsible financial choices. Once under the watchful eye of the Troika, there is little room for mistakes or excuses. Now if the Troika's solutions are of any real help, that is another issue. Ideally, I would not support for each state to surrender its economic sovereignty. But since we are all in the Common Market and use the same currency, there is not much of a choice.
As the crisis deepens, it will most likely drag more and more European states into it. They will have the reassurance of the ESM for support, thus austerity is here to stay in our continent. But what will happen if the states that lend want to lend no more? When a core of rich countries support all others, this will inevitably create frictions in the EU and that is in no way helping the European integration.
Instead of dealing with the shortfalls in each country's economy and Europe's as a whole, we put them on life support. How can this be of any benefit for the European economy? With ESM or without it, our continent is in deep trouble and it needs reforms.
So far we have seen only the kind of reforms who bring misery to the ordinary European population. How can we built Europe on such policies that do not gain the support or approval of the people, they are not necessarily for their benefit, rather the benefit of the global economists and bankers?
So far we have seen only the kind of reforms who bring misery to the ordinary European population. How can we built Europe on such policies that do not gain the support or approval of the people, they are not necessarily for their benefit, rather the benefit of the global economists and bankers?
In the current economic climate it would make sense to cut the budget, and I understand people who want to see this happen. If countries are struggling, they need all the funds they can find to keep their economy afloat.
And of course the EU budget must reflect the reality that Europe faces. If there is a shortage of money, business can not go as usual for the EU and its institutions either.
But it is also irresponsible to follow a populist line if the funds can be found from doing what it needs to be done and the reforms that are needed, instead of grasping the easier solution of cutting the EU budget. Is saving the Banks more important for example?
In my opinion the EU budget should stay the same or even increase, in order to be able to invest in all those projects and programs that will make some difference in the future of Europe.
Having said that, the EU budget must be overall reformed and countries that were not contributing as much, is time to start giving more. Instead of relying on subsidies, these countries must be encouraged to invest and become more industrialized, become richer like the “core” EU economies and start giving their share.
Thus a more harmonized European economy is needed. The “core” countries will lose out a bit, but at least they won’t moan all the time of contributing too much and “sustaining too many freeloaders” as many British Euro-skeptics have put it.
If there is a more harmonized European economy, then it won’t be necessary for some countries to contribute more in the budget or others less. It will be fair, and the squabbles between the states of who gives more or less will stop.
So we will be able to increase the EU budget and invest in all the spheres that will be beneficial for all European economies. But I think that it will be the “core” countries that will object more to such thing.
Also the priorities of the budget will have to change. Where and how the money is spent, will be decisive for Europe's future, economy, unity and integration. We need to spend more in spheres that we haven't been until now.So far the budget was rather "predictable" and that does not change much Europe's future I am afraid.