Monday, June 18, 2012


What a week-end!
What a future!
It would be redundant to elaborate on events which already fill papers and keep political analysts busy while leaving the spectators in the cold.
Nothing got solved. The Islamist victory in Egypt or the Greek vote in support (?) of the bailout are hostage to forces which they cannot control. This on top of numerous flash points spread all over which do not respond to available therapies.  Meanwhile, the G20 are currently meeting in Los Cabos in Mexico, an absurd tropical 007 setting, while the world is on fire.
I will not elaborate on situations that are out of control but as a European I wonder if our many cooks will ever be able to come forward with an agreed "entree" rather than with an assortment of little "canapes."  Paul Krugman argues that the origins of the European disaster lie north rather than south. The monetary system is fatally flawed, unwilling or unable to come up with ideas which could in turn rectify the recognized malfunctions in Greece, Spain & Co. If your house is on fire you do not moralize, you dial 911. The European Central Bank and Euro member states, in the first place Germany, have not come up with solid alternatives.  Spending more maybe or letting some inflation free are still tabou in the leading circles which hold firm on austerity rather than growth. Theology stands in the way of praxis.  Europe is in need of a far stronger central authority if it wants to avoid the fate of the Medusa raft where there were too many to be rescued, while being rudderless.  This crisis in the globalised world is toxic and could very well derail America's slow recovery and torpedo the advances of the BRICS.
I would contradict myself if I were to suggest that the euro zone or the EU as a whole are doomed. The adverse psychology which weakens Europe's attraction as a model should not remain unanswered.  Europe needs to review its existing structures and realize that new unforeseen conditions can no longer be monitored by outmoded dogmas. There is plenty of conceptual talent in the EU but the political will lies in tatters.  Most realize that, but too few are willing to accept the consequences of this new breed of power vacuum.
That the Greeks and Spanish are faulty is a fact.  Letting them become scapegoats for not doing enough does not help. The sick should not be allowed to become an alibi for the non-doers.  Athens before the elections equals Athens under Antonis Samaras. This pyrrhic victory might well prolong the stalemate rather than shorten it.  It should not stop the EU from reviewing its workings and ignoring the austerity showdown which looms around the corner.  I wonder how the stock market will react but I am afraid that in the short term the unconvinced will have the upper hand if nothing more drastic occurs.

No comments:

Post a Comment