Following the recent Eurogrooup and the decision of the European finance ministers for a conventional loan regarding the cost of the crisis for the south that has been hit hardest by the coronation, the precautionary credit lines were in the spotlight. These are nothing more than an informal memorandum on a negligible amount with the risk of rising public debt in already indebted national economies. It is a weak response from the North’s strong economic performance after the imposition of a triple economic support package despite the anxious efforts of the nine countries to jointly bond and exit the crisis. This gives the impression that the rich north is leaving the South.
It has been shown once again that in Europe states and markets are being manipulated by the market and that no other financial system, even if we have a pandemic of the colonial type, can change a person or a role beyond its memorandum tactics. The role of the lender to the weak. The welfare state seems completely non-existent.
The European Union’s nine countries have voted in favor of issuing a Eurobond because they are already experiencing a crisis from the memorandums of the banks and their capitalists, with a high interest rate. Only with the issuance of a Eurobond could borrowing include social welfare and solidarity from Germany and its satellites. However, Berlin’s refusal in this direction only results in the ongoing speculation against the people, the banks to control the game of the markets.
This result comes from another pathogen of the Euro, no state can issue surplus money if and when it has, because it is not provided for in the regulation of the financial system of the Eurozone. In essence, the European Union is turning against itself. The loss of confidence in the Euro will be a fatal consequence for the ECB, it is not ruled out that there will be a speculative wave of attacks against Italy or Spain, the toughest countries to be tested by the mockery.
The eurozone support package will be implemented by the European Stability Mechanism, which means that after the expiration, the states will continue to commit to lending to strengthen economic and financial foundations in the context of economic and tax cooperation.
But what foundations should be put in place by the indebted and bankrupt South, which is being financed in order to be controlled as much as possible? Because this is the logic of a continuous borrowing and it seems that it is done systematically and in various ways from the beginning of the Monetary Unification and the imposition of the hard currency of the Euro. The logic is that you can’t support the weak.
How can the people support these foundations, without recovery at a time when the solution model proposed in the Eurozone does not cover the cost of the coronation. European institutions with a focus on the Eurogroup will contribute 540 billion euros, or only 22% of total spending. The 240 billion euros are net of the European Stability Mechanism. As for Greece, it will receive 6 billion euros. This essentially means that it receives only 1.1% of the total plan.
Preventive credit lines with this solution model, which is not only not enough, are even increasing the recession in the south vertically, while at the same time no Eurobond-type tool can be used. Because here we have an informal memorandum. The Eurogroup obliges the countries affected by the coronation to take precautionary credit lines, on terms that will be mandatory.
It is not possible every time we have a health crisis to charge the states without having the right to use the surplus or never to have their own resources available for emergencies.
And if we do so in the end because it is planned to do so, as decided by the Eurogroup, after the end of the coronation, all countries will logically return to the pre-colonial economic conditions. The question is how the return will take place, if a long period of deep recession applies in the already impoverished South. At a time when the budget deficit is in deep recession.
The European Stability Mechanism (E.S.M) will also be able to fund the Rehabilitation Fund, which will be supported by some innovative financial instruments. This is not something special, because the intervention of the support mechanism is very small. In addition, the whole plan is an informal memorandum. This is the usual tactic.
And because we talked about Greece, in a nutshell, according to forecasts and expert estimates, Greece will receive a total of 6 billion euros, the 3.6 to 3.8 billion will be given to health and treatment. of the mockery. The recession is estimated at 7% to 9% overall for 2020 and for the second quarter of 2020 about 18% to 20%.
The budget deficit is not ruled out to reach 15%. With a loss of about 15 billion euros in G.N.P. Therefore, the 6 billion in financial aid for Greece is a negligible amount just for consumerism.
Such painful solutions, without any reason for improvement and even in issues that we are unprepared to face, are the illusion of redemption in the economic impasse of the Eurozone where at its core is the declining society of unemployment, bubble and oligarchy’s very conservative sale. well globalization imposes to support its foundations …