Discussion on the Future of Europe #CGEG

A really interesting discussion on Europe, austerity, society and solidarity.

This program on February 25, 2013, featured a discussion among distinguished thinkers, policy makers, and practitioners on the challenges facing Europe and the implications for the region and the world's economy, politics, and democracy.

Opening Remarks by President Lee C. Bollinger of Columbia University.

Panelists:

Ambassador Anne Anderson, Permanent Representative of Ireland to the United Nations;

Kemal Derviş, Vice President and Director, Global Economy and Development, The Brookings Institution; Senior Advisor, Sabanci University; Adjunct Professor, School of International and Public Affairs, Columbia University;

George A. Papandreou, Member of Parliament and Former Prime Minister of Greece; SIPA Global Fellow and Adjunct Professor, School of International and Public Affairs, Columbia University;

George Soros, Chair, Soros Fund Management LLC; Founder and Chair, Open Society Foundations

Joseph E. Stiglitz, University Professor and Co-Chair, Committee on Global Thought, Columbia University;

Jan Svejnar, James T. Shotwell Professor of Global Political Economy; Director, Center on Global Economic Governance, School of International and Public Affairs, Columbia University

This program of Columbia University's World Leaders Forum was co-sponsored by the Center on Global Economic Governance at Columbia SIPA and the Brookings Institution.

Actions speak louder than words

Actions speak louder than words

Troika, i.e.: ECB, EU & IMF are all trying to "save Greece". Or so the say.

The ECB did what it could to buy time, through Greek bonds. The IMF pushed the EU towards a real Union. What about the EU? Up to now, I have yet to see some sincerity in its actions. All I see is punishment. Even if we deserved it, it will not provide any solutions to the real debt crisis; the European Debt Crisis.

It seems that the EU is more concerned with limiting contagion - limiting the consequences of a Greek default. Without looking at any real solutions with any prospects for the European future.

Guess what; the contagion is already here, and the reasons are identical to the "Greek" crisis. One word: credibility. The EU is losing it with every half measure it announces, with every vengeful move it makes towards its debt ridden members.

Unless EU leaders decide to see the real problem, in its entirety, they are bound to follow our fate. "The (evil?) financial markets" might not be exactly kosher in their operations, but they are quick to find a pray. And right now, they 've got their eye on the Euro.

Time to act gentlemen. No more words, for they are worth very little in the real world. I know it for a fact - I live in Greece and I have heard my fair amount of BS under false pretences.

Act!

New measures, aged tactics

Papandreou will announce further measures to reduce the deficit by 4% this year.

In all likelihood, he has accepted EU’s demands for VAT increase, pay-cuts in the public and private sector. Measures that against all pre-election rhetorics, will harm economic growth and will increase unemployment. In the following climate, I suspect that all much needed reform will be canceled under the fear of public uprise.

The Eurostat knew where the country was going since 2006, but it kept silent. It had nothing to say about the 500million euro program to change old cars with new ones. It had nothing to say about the increases in government spending that got Karamanlis re-elected in 2007 with the majority of two MPs. It kept quiet while Greece’s spending went from 50% to 75% in Karamanlis’s final effort to stay in power. All this time Mr. Barroso visited Mr. Karamanlis every 6 months, offering his political support to a fellow Conservative amidst their respective election campaigns.

The Eurostat had a lot to say, after Karamanlis was ousted in October 2009, following an election that was fought and won by 10.5% on an agenda of transparency and reform. All this talking kicked off the financial speculators and their CDS gambling against a European country and its Sovereign debt. A debt that reached new highs, under the blanket of an inexplicable EU-silence.

I thought that our EU-memebership would safeguard us from the likes of Karamanlis and his clan. I was wrong. Private and Sovereign interests prevailed.

“Pay your creditors and shut up” is the motto.

This monetary union (as opposed to political), will follow the rules and ethics of the financial markets. It is willing to bring unemployment to a people that voted for reform. It is willing to experiment with our tolerance to corruption, lack of social justice and poverty.

Aged tactics with well known consequences. I expect the worst reactions. The warning signs are here, but the EU still chooses to play on the limit. Big mistake, but who’s listening. Civil unrest will create its own opportunities for the markets.
Unless there is a spill-over effect to markets that really matter to them. For the time being, it looks that it is a risk they are willing to take.

Σχετικά

Twitter / constantinos alexaco: Εσείς καίτε κι αυτοί βγάζο ...

My BBC_Blogsworld video message

http://www.bbc.co.uk/blogs/blogworld/2010/02/constantinos_alexacos.html

The Berlin wall & the PIIGS

The Berlin wall & the PIIGS

by Constantinos Alexacos

A few months ago, the western world celebrated 20 years since “The Fall of the Berlin Wall”. An different anniversary, that wasn’t celebrated was 60 years since the end of Germany’s Allies occupation, following WWII (1945-1949).

Sixty years is a long time, even for a place like Europe. The question is whether it is enough, for people to change. Seventy years ago, the Nazi movement was gaining popularity following The great Depression. Germany’s reaction then was to lash out against friends and foes (Lithuania ultimatum, 1939) in an attempt to regain grounds it had lost after the Versailles Treaty. A new German realm was the goal and WWII was the result.

The European Union was created in the aftermath of all this, in an effort to ensure peace in the future. A political union that could not exist without an economic one.

9 May 1950 — French Foreign Minister Robert Schuman presents a plan for deeper cooperation. Later, every 9 May is celebrated as 'Europe Day'.

In a few months, we will celebrate “Europe’s Day”. Following the recent European press, I am having great difficulty understanding the meaning of today’s Europe. Six decades have past and I see no political union. All I see is the €uro. The borders are guarded by member States, the foreign policy is dictated by Sovereign interests as is the common currency.

The PIIGS are a European matter, which is dealt according to German interests. This is not what we agreed when entering the EU. We entered a political Union, not the federation of the Deutsch Mark. Yes, the Greeks were slow to reform, and yes they had financial discrepancies. Who didn’t? Greece’s difference is that it benefited the least from this Union, a prime example being its defense spending, that amounts to an average of 6% of its GDP to guard European borders. Greece received financial incentives to change its economy, only to return them by importing German, British and French goods - not to mention military supplies. On the CIA’s Factbook, Greece holds the 26th place (out of 173) in military expenditures. The following €urozone country is France at 2.6% in 61st place. [Portugal 72nd @2.3%, Italy 93rd @1.8%, Germany 109th @1.5%, Spain 128th @1.2%, Ireland 146th @0.90%].

To achieve this kind of excessive spending on military supplies (to guard EU borders), as well as other imports and infrastructures (like the new airport that was built by the German company Hocktif) Greece borrowed. It borrowed a lot. In 2004 it owed 164 billion €. Today Greece owes more than 300 billion €. And yes, some of it went on bribes to corrupt government officials that partly facilitated this spending (eg SIEMENS, MAN, ...).

Are Greeks to blame? Yes. Of course we are. But we are not alone in this. There is also blame for (mainly monitoring) procedures that didn’t exist or weren’t followed within the EU. I find it hard to believe that no one noticed for 2 years, that the previous government rose public spending from 45% to 75% of all economic activity. I am having difficulty understanding why the Commission kept quiet until the recent election was won by G.Papandreou (by more than 10% gap) with an agenda of reform. That surely proves that the Greeks want to see this change. I definitely cannot understand why on earth would Almunia, Triche and other officials decide to fuel the speculative press with their initial reactions to the Greek problem. Didn’t they know prior to October 2009? If they knew, why were they so silent? Can anyone really see any fairness in all this?

What I really don’t understand, is why the EU (or should I say Germany) is determined to force economic measures that will harm growth, only to reduce the budget deficit. Measures that were usually adopted by the IMF with well documented destructive results for the peoples involved. Before I have an answer, I would like to see a full report on our spending/income, 1979 onwards. If all this aggression is fueled by the subsidies received, I would like to see the bill to-date, including all EU imposed penalties on Greece, and our foreign expenditure on cars, goods, and arms.

Then I’ll understand who benefited from this wondrous Union, by how much and at what cost. Until then, I refuse the term PIIGS, I refuse the VAT increase, I refuse the challenge to our Sovereignty and I definitely refuse the press’s racist approach to a political and financial problem. We have seen this before. Markets don’t have the time nor the will to reflect on history and determine long term goals for the people. That is the basis of politics, and it is good time we see some of it. Enough.

All we asked for, was time. All we got, was abuse.

Has Europe forgotten what National interests can do?

Greece has narrowly escaped defaulting.

For the past 5 years, Greece was robbed of its funds and dignity by the most corrupt government the country has ever seen. The corruption was so well planned and executed that it managed to cheat all of the EU (this is an assumption Mr.Barozo).

Four months ago, there was an election. A new government was elected (+10% gap), with an agenda of reform, thus proving the people’s will for change. The assumption was that the EU would be behind such an effort.

First step, to come clean with regards to our economic position - full disclosure. It proved to be a major mistake. The EU did not appreciate this disclosure. Instead of facilitating the reform, it proved to be our worst adversary, thus justifying every Eurosceptic in this country and abroad. National and market interests have prevailed over European ones.

The Commission could have stopped this new crisis early on. It didn’t. Worries about the Spanish housing bubble and its ties to the British and German banking sectors allowed (or dictated) that Greece should be thrown to the market lions, in a new (financial) Arena.

A welcome side-effect: the lower Euro against Dollar, that would help exports. Are there any certainties that the situation is under control? That the fall of Euro can be stopped whenever the EU decides it had enough? Suggesting something like this, would mean that there is a plan, that uses the fate of 11 million Greeks as tools for monetary gains. Unthinkable, and as such rejected.

The only explanation then, is the lack of policy that can handle this crisis. Or the lack of will. If so, this is no Union. It’s a monetary pact. And as such, it will collapse under stress, since each member will try to achieve National goals, not European ones.

The Greeks didn’t ask for money. Just time to “put our house in order” as the Greek PM repeats again and again. And protection from the unlicensed CDS gamblers and speculators.

“No can do” said Ms. Merckel now, and Mr. Almunia before her.

If Greece defaults as a result of this non-unified EU stance, it won’t be its fault. And they won’t suffer the most. But have no doubt, that it will be a huge step backwards, not for Greece, but for Europe, if not the world.

Has Europe forgotten what “National” interests can do?

P.S.: See what a little disclosure, from a small country can do?

It can unveil all kinds of false pretences.

It can clarify and question so much.

I have a bad feeling about this, and I hope I am wrong.

edit

• Credit default swap - Wikipedia, the free encyclopedia
• Nine EU members 'have excessive debts’
• almunia greece - Google Search Look at the timeline, and how it all started right after the election. If nothing else, it is interesting.
• Europe’s Trojan Horse - Project Syndicate
• Revealed: Goldman Sachs’ mega-deal for Greece - Risk.net
• Stop missing the point. Greece is important – Crikey
• One big world of cheats | FP Passport
• Analysis: Wall Street banks behind Greek crisis? - CNN.com You have the sense that banks have been playing all sides of this, making money whatever happens to Greece.
  --Senior European Commission official