Sunday, 3 March 2013

No place for Merkel

Angela Merkel and David Cameron at the EU summit
Merkel and Cameron
both seem bent on destroying the EU

Unlike elections campaign in France, Greece, Italy and Cyprus,  German Chancellor Angela Merkel hardly received a mention in Malta's election campaign.

In the first weeks of the election Prime Minister Gonzi made reference to the fact that Chancellor Merkel stated that Malta should be considered as a standard bearer for countries on how to handle the crisis.   The comment was soon lost in the wash.

As an economist with grave concern about the future of the Euro and the single monetary system, the collapse of which could have serious consequences not only on its members but on the whole world economy, I feel that post-election Malta should work hard to form a Southern Europe pressure Group to bring the German block to become aware of the basic fact that their efforts to Germanise (economically speaking ) the whole Europe will in the end backfire with grave political consequences.

While elections in Cyprus and Greece delivered results as desired by Merkel & co, mostly due the fact that these countries really had no choice as they depended on EU bailout to avoid economic implosion, in France and now in Italy the electorate has decided to defy Merkel and vote against her liking.

In France they have elected a socialist who has still to deliver on his promise to force Merkel to switch from austerity to growth in order to pilot Europe out of this never ending recession.   In Italy the electorate delivered a stalemate which in the end has delivered a veto to two comedians, Berlusconi and Grillo, who enjoy making fun of Merkel and her ultra conservative policies.

Unlike many commenatators, I think the Italians have voted very intelligently.   They could not endorse Monti and the PD who seemed willing to toe the Merkel line when in fact the country needs to couple reform with growth not with austerity.    At least in delivering the message to Merkel the Italians have produced a stalemate through the involvement of two clowns; much better than opting for some extreme solution of the right or left which could threaten the democratic foundations of the country.

A new Maltese government must, in conjunction with others, bring pressure to bear for the EU to bring about successful economic restructuring by economic growth policies based on fair burden sharing where the surplus countries have to adjust as much as the deficit countries.  This is indispensable to restore a healthy equilibrium  as a sound platform for economic growth that benefits all.

Here is an extract in the conclusion of my Thesis on HOW TO SAVE THE EURO which is available on the top line pages of this blog:

The alternative to Germany's refusing a Marshall Plan approach in devising solutions to the Euro crisis is that Europe will suffer the same consequences of the 1930's and 1940's that followed the Versailles Treaty of 1918.  Obstinacy to enforce austerity through Versailles methods could prejudice all that the EU stands for.  Six decades of peace and prosperity could be washed down the drain due to lack of visionary leadership to turn a crisis into an opportunity for further European integration.  Current leaderhip style using the crisis to appear macho in the eyes of domestic audience , risks fuelling the extremes of nationalism.
Joseph Muscat has his work cut out for him where Lawrence Gonzi has failed, presumably because he was not even concious of the risks in the direction that the EU is heading to.   Democracies rarely survive never ending recessions.

No comments:

Post a Comment