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venerdì 31 ottobre 2014

The challenge of the new European Commission

The new European Commission, next to the settlement, will once again act on the emergency economic This will be the central theme of the team led by Juncker, who will have to devote less attention to while pressing international emergencies, to revive the fortunes of the EU's growth and fight unemployment. The task that awaits the most important collective body of the European Union, it will be far from easy, beyond the statements of the facade; contrasts on the application of the standards excessively geared to the rigor and the rigid German attitude, are likely to cause significant delays in the preparation of budgets and investment plans, at a time where speed is a major factor in combating the crisis. Despite the cease-fire that has eased the pressure on Italy, but mainly on France, thanks to an agreement in principle between Paris and Berlin, designed not to scuttle the euro area, the authority of some central control bodies appears decreased. Enable France to postpone for a further two years to bring their public debt below 3%, and then by 2017, it looks like a failure too high to continue to ask for sacrifices to other eurozone members. The new Commission will then operate in a regime of difficulty, with a precarious balance, always ready to be jeopardized by the economic trends of the moment. In any case, by the end of next month, it is assumed that the control of the financial statements will become the focus and this will allow you to understand in full what will be the address that Brussels wants to take. The budget likely will be about 300 billion Euros to lift almost an entire continent from the economic crisis, but more than the sum pledged to worry about is once again the attitude of Berlin, who has not seen favorably placing a large liquidity in the European system, when earnings Germans have generated a substantial surplus, which is likely to depreciate. Germany would prefer a competition between public and private investment to stimulate the economy of the EU, however, this distribution is yet to be studied and agreed and this time is likely still to be in favor of a single German economy, increasing suspicions that Berlin using a tactic aimed at delaying decisions to move them away over time in favor of the German production system. In support of this hypothesis is also Germany's refusal of the use of the euro rescue fund, which has a total availability of 500 billion euro, of which 450 available to be placed on the market. Once in Berlin, under the guise of rigor, protects its production capacity, which probably would see drastically reduced its capacity if threatened by commercial productions made ​​on the continent. Although the role of the European Investment Bank, there are unique views, the use of this leverage implies an increase in capital that does not seem to be shared. Despite the good intentions does not appear that the new composition of the European Parliament, at least in the first sensations, is able to reverse the trend that sees the majority shareholder in Germany, with all that goes with it: excessive rigidity of budgetary constraints, despite occasional loss and consequent increase in anti-European movements. Decision time has come: without an adequate economic policy so as to spread the wealth among the people of Europe, mistrust will grow and the goal of political will become unreachable. This is the real challenge of the new European Commission.

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