By Marta Andreasen MEP • Yesterday afternoon I voted against the wish list of recommendations to be taken in the current economic crisis in the European Parliament’s special committee on the crisis (CRISE as it is called over here).
The report was a list of fixes that the dreamers in the European Parliament have been working on for a year and a half. Eurobonds, project bonds, prohibition of short selling, a financial transaction tax, even a global economic authority under the UN are being mooted.
So these are the fantasies but what is the reality? The report is an own initiative report of the European Parliament addressed to everyone under the sun telling them what the problem is and how it should be solved. But the Parliament does not have the political clout to exact the list.
The member states are not planning to set up a debt issuing authority or a European treasury or an increase to the EU budget or to create a new tax or any of the other initiatives the EU would like to carry out.
The reasons are simple: governments across Europe have enough serious problems on their hands that require all their own revenue and more, they are making cuts to services and have no desire, much less inclination, to enable a body that has lost credibility with them to spend more money on Walter Mitty projects.
The icing on the cake this time is calling for a global authority. This is an impossibility in the present circumstances. The only reason the Bretton Woods system was set up after the second world war was because the United States was victorious and its European allies were bled white. A strong leader and their currency was accepted by the rest of the world. We are no longer in the same situation and no country is going to willingly accept world government.
How does the crisis need to be solved? To me it is clear. We need to let the weak economies abandon the euro and default if necessary. Out of this straightjacket they will be able to reactivate their economies to the benefit of all.