Crisis and debt in Europe: 10 false evidence, 22 to debate measures to break the impasse
Rebellion Translated from French by Beatriz Morales Bastos
Introduction
The global economic recovery, which led to a massive injection of public expenditure the economic cycle (from the U.S. to China) is real but fragile. One continent is still lagging behind Europe. Retrieve the path of economic growth is not its political priority. Has taken a different path: the fight against public deficits.
In the EU these deficits are indeed high - 7% average 2010 - but well below the 11% U.S.. While some states of economic weight more important than that of Greece, for example, California is nearly bankrupt, financial markets have decided to speculate in sovereign debt of European countries, particularly in the south. In fact, Europe has been caught in their own institutional trap: States must borrow from private financial institutions get cash at a low price of the European Central Bank. Consequently, markets are the key to the financing of States. In this context, the lack of European solidarity raises speculation, especially since rating agencies play to accentuate the mistrust. It took
Moody lowered the note of Greece on 15 June for European leaders meet again the term "irrationality" that both had been employed at the beginning of the subprime crisis. Likewise we discover now that Spain is much more threatened by the fragility of its growth model and its banking system for its public debt.
to "calm the markets" is improvised a euro Stabilization Fund and launched across Europe plans to reduce public spending drastically and often blind. The officials are the first affected, in France, where the rise in the prices of their pensions will decrease her salary covert. Everywhere reduces the number of staff, threatening to public services. With the current pension reform from the Netherlands to Portugal via France social benefits are in the process of being severely amputated. In the coming years will necessarily develop unemployment and job insecurity. These measures are irresponsible from a standpoint of both political and social as well as strictly economic.
This policy, very tentatively has calmed speculation, already has a very negative consequences many European countries, most particularly in youth, in the world of work and on the most fragile. In the long stoke tensions in Europe and thus threaten the European construction itself is much more than an economic project. It is assumed that the economy is in the service of building a democratic continent, peaceful and united. Instead it imposes on all parties a sort of dictatorship of the markets and particularly today in Portugal, Spain and Greece, three countries that were still dictatorships in the early 1970's, just forty years ago.
already interpreted as a desire to "calm the markets" frightened by rulers or as a pretext to impose choices dictated by ideology, submission to the dictatorship is not acceptable because it has proven its economic inefficiency and its destructive potential on the political and social. It should open in France and in Europe a real democratic debate on economic policy choices. Most economists involved in public debate do to justify or rationalize the subservience of politicians to the demands of financial markets.
Indeed, everywhere the authorities have had to improvise a Keynesian stimulus plans and sometimes even temporarily nationalize the banks. But they want to quickly close the parentheses. The neoliberal software is always the one who is recognized as legitimate, despite their patent failure. Based on the assumption that the efficiency of financial markets should reduce public spending, privatize public services, labor market flexibility, trade liberalization, financial services and capital markets, increasing competition in all fields and everywhere ...
As economists we are terrified to see that these policies are still the order of the day and its theoretical foundations have not been questioned. However, the events have highlighted the arguments advanced thirty years to guide the choices of European economic policies. The crisis has exposed the dogmatic and unfounded most of the alleged evidence repeated ad nauseam by decision makers and their advisers. Whether the efficiency and rationality of financial markets, the need to cut spending to reduce debt or to strengthen the "stability pact", is to question these false evidence and show the plurality of options possible in economic policy. Other options are possible and desirable condition, first, to loosen the wheel tax for the financial industry to public policy. We
below a critical presentation of ten principles that continue to inspire every day decisions of public authorities across Europe despite the denials hurtful provided by the financial crisis and its consequences. This is false evidence underlying unfair and ineffective measures against which to expose twenty-two proposals for discussion. Each of them do not necessarily enjoy the unanimity of the signatories of this manifesto, but must be taken seriously if you want to pull Europe out of its impasse. Table des matières
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Manifesto economists
* terrified *
FALSE EVIDENCE 1: equity and debt markets are efficient
* FALSE EVIDENCE # 2: THE FINANCIAL MARKETS ARE FAVORABLE ECONOMIC GROWTH
* FALSE EVIDENCE # 3: THE MARKETS ARE GOOD JUDGES OF THE SOLVENCY OF THE STATES
* FALSE EVIDENCE # 4: THE SPECTACULAR RISE OF PUBLIC DEBT IS THE RESULT OF EXCESSIVE COSTS
* FALSE EVIDENCE # 5: YOU MUST REDUCE COSTS TO REDUCE THE PUBLIC DEBT *
N FALSE EVIDENCE 6: PUBLIC DEBT MOVE OUR PRICE EXCESS OF OUR GRANDCHILDREN
* FALSE EVIDENCE 7: ENSURE THAT THERE FINANCIAL MARKETS IN ORDER TO FINANCE THE PUBLIC DEBT
* FALSE EVIDENCE No. 8: THE EUROPEAN UNION DEFENDS THE EUROPEAN SOCIAL MODEL
* FALSE EVIDENCE # 9: THE EURO IS A SHIELD AGAINST THE CRISIS
* FALSE EVIDENCE # 10: THE GREEK CRISIS HAS FINALLY ALLOWED TO PROGRESS TOWARDS AN ECONOMIC GOVERNANCE AND A REAL EUROPEAN SOLIDARITY
* CONCLUSION
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