“demagogues”, “provocateurs”, “Voodoo Economics” … The new Greek government, following elections last weekend, was not welcomed by the vivas in Europe. I must say that Alexis Tsipras, leader of the party Syriza and new Prime Minister, did not skimp on the shock ads to mark a break with the remedies imposed on his country by the Troika (ECB, IMF, European Commission)
- Hiring 2,000 employees;
- Minimum Wage Increase
- Increases in pensions;
- Freezing of privatizations courses (the port of Piraeus, electricity …)
- Access to care
- Increase in the top of the income tax …
And for good measure, Alexis Tsipras received as first foreign partner, the Russian ambassador. History clearly show that as small as his country, he has much to be boring. Of course, Greece is in NATO and has supported hitherto sanctions against Moscow, but nothing is set in stone, he suggests, for this gesture.
Inflate plumage
Obviously, there is a hand posture in these ads, we are at the beginning of a tough negotiation. To be credible before a fight, the cock shall inflate his feathers … Especially if it is small and is facing a much bigger opponent than him, Germany is very closed to the idea of softening the fate Greeks by management of their public debt or new public investment.
No interest in breaking
The old road of European discussions consider this as a perfectly conventional dramaturgy . There will be an agreement, they assure, because no interest in a snap. After years of effort, even sacrifice, to comply with the rules “austéritaires” Troika, a “Grexit” (the nickname given to the possible exit of Greece from the euro) could cause a crisis terrible policy in the country, or even an explosion of the single currency. The President of the Eurogroup Jeroen Dijsselbloem was Friday in Athens to engage in dialogue.
The error that European leaders would do is to shut this exchange in a head-to-head German -Greek, while it may be an opportunity to fundamentally reform the European operation. The Greek crisis is indeed a symptom of a much deeper problem: the inability of the eurozone, born lame, to conduct an effective economic policy
Expanding the debate in Europe.
Many ideas are on the table for the euro works better. Create a political side to the monetary side, building a parliament of the euro area, launch common policies, creating a common corporate tax … Bill Emmot columnist of “The Economist”, invites Angela Merkel to take the initiative a “modern version of the Marshall Plan” to revive public investment, complete the liberalization of the single market and restructure sovereign debt.
Adjust the issue of debt
The issue of sovereign debt, whose service leaden budgets of several member states, should also go beyond the framework and only Greek to be addressed across the euro area. Since the beginning of the financial crisis, economists advocate tirelessly for the pooling of part of the sovereign debt of countries to ease their burden. For example, in 2011, the group of economists that advises the German chancellor had suggested to share the part of the debts of the countries above 60% of GDP, an idea taken today by economist Thomas Piketty.
These ideas seemed hitherto unrealistic, but the European game has been hackneyed:
- The electrical Greek tion, this democratic sting, has shaken the inertia
- Other elections are scheduled this year in Britain and Spain, with Europe to debate Central
- The IMF, aware of the failures of its traditional formulas, encourages different policies;
- The Central Bank has changed its policy, leaving the field to join the orthodoxy unconventional methods;
- Finally, a new European Commission has vowed to act , defined as that of “last chance” …
These different stars align, opening the possibility of a change of course. But the key to the success of such a reinvention, which would benefit everyone and deflate the growing nationalism is to find on the Paris-Berlin.
Pascal Riché
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