viernes, 10 de agosto de 2012
FINANCIAL SERIOUSNESS AND SINCERITY OF THE MAN (9 MIN.)
FINANCIAL SERIOUSNESS AND SINCERITY OF THE MAN (9 MIN.)
Juan B. Lorenzo Membiela (c)
After the «historical» European Summit ended on 29 June, the German newspaper "Die Welt" published on its front page: "Europe arrives for our money". It is a terse summary of a reality that is not entirely correct. It is true that Germany is compromised by what was agreed at the Summit even her German Federation of savings, but not yet.
German Parliament, then to the Summit, agreed by two-thirds accessions to the Fiscal Pact and the European Fund for stability and sustainability (improperly called bailout Fund). From July 1, 2012 is replaced by the European stability mechanism (MEDE), known by the acronym English ESM (European Stability Mechanism).
It is a temporary relief for countries in crisis, since then it is hoped that the risk premium will not rise to such high dimensions. Extreme premium that is due to the inadequacy of structural measures stimulating competitiveness. I.e., that the risk premium indicates the need for further reforms.
However, the Chairman of Germany, Mr. Joachim Gauck, not sign these laws passed by the German Parliament until the German Federal Constitutional Court (Bundesverfassungsgericht) to decide on the appeals lodged by the regional leaders even of the same political party that Chancellor Merkel, the Christian Democratic Union (CDU).
Deserves attention this circumstance because the German tribunal's jurisprudence is not prone to transfers of sovereignty to Brussels. Some adverse judgments contributed to the holding of regional or national plebiscites and commit the viability of the European stability and sustainability fund, at least temporarily.
The MEDE can be injected directly into the banks of the countries which so request an immediate liquidity to avoid insolvency. Its funds are guaranteed by all States members of the EU and have a capacity of 440 billion loan €.
The lender is rated by Moody's as "Aaa" by Fitch Ratings and "AAA" by Standard & Poor's as "AA +".
The struggle of Chancellor Merkel, in defense of strict policies of austerity against Spain, Italy and France has noticiado in excess. That these nations blocked any other option that wasn't an endorsement for the euro and the so-called «policies of growth».
I don't think that win or lose in this lance has relevance. Yes there was and there is distrust of the adoption and operation of structural measures "in depth" in the affected countries. And a price that will be added to the types that shall be imposed on the loan that you grant the MEDE. Measures stimulating for competitiveness extensible to a greater or lesser extent throughout the European Union. Spain and Italy are not the only problem but cement the problem.
The prevailing mistrust - cause of the high risk premium - is that will motivate that along with banking and tax measures be accompanied different ones that streamlined the State of welfare, labour, public relations and private, and in general, a transfer of sovereignty in favour of the European Commission which will be more sparing in the maintenance and Latin cutting subsidies.
The Greek example, not long ago, evidence of how after winning an election parties Europhiles, radically changed program avoiding any compromised structural decision. Intra-Community insincerity has unpleasant consequences especially for countries whose liquidity will be committed even to pay for essential services.
No doubt the European control over the money that is paid will be scrupulous (Gertrud r. Traud, 2012). Well is not an investigation into the causes of this situation. But one of them, is certainly an institutional wear that began decades ago and that has stunning to who for its mission should have acted with forecasting and prevention. Without a doubt what is and what ought to be a managerial position in the Administration has been forgotten in its very essence, that is, without more, a public and institutional Sector for a good general and common.
This fact confirms called «determinism institutional» 2011 (Inglehart), by which a society institutions integrate culture formed in that society. I.e. worn institutions encourage worn societies, as integrity institutions encourage societies intact.
Financial inconsistencies flagged mistrust that prevent the crisis leave. Questionable is not so restrictive measures but positive, creative. For example, the design of efficient processes in industry or services to increase productivity, flexible management looking for greater commitment to the operator, freedom of trade to tackle the crisis with autonomy without being bound by regulations which hinder competitiveness, the creation of international networks that facilitate the installation of factories or companies outside of the European Union, the empowerment of the electronic market, limited deregulation to the free market ultimately.
These are times of epic not opportunists. It is time for the poetic deception that says ailing truth. The political demagoguery nothing solved already. The designed stagings have been left without applause by an empty Auditorium.
The deconstruction of what Europe has meant as a civilization or image advanced from what should be a modern world is in decline. Neither India, nor China, nor Brazil, nor other powerful and emerging economies have invested in social protection that this old continent has spent. Neither adopts nor programs that encourage initiative and creativity in its citizens.
It is the time in which everything must be streamlined in proportion to the economic viability of each State and insecurities that must be controlled by the knowledge that entails. Modernity has another very different way whose epicenter is not exactly the man but financial. Some say that it is the same, because both the one and the other thrive in chaotic in self-dealing and it is possible that he is right. With humility, let us recognize that the problem is in each of us, not in others.
Come on purpose the words from William e. Henley:
« […] In the fierce grip of circumstances
I have regretted nor I gave shouts.
Under the blows of the random
My head bleeds, but will not tilt [...] » .