Merkel pushing for austerity
The European Union is still struggeling with the financial crisis and the debts of many Eurozone member states. The only answer given by the European leaders so far was austerity. In fact it was Germany under the conservative government of Angela Merkel pushing hard for reducing state debts via austerity policy. The countries in the south were blamed for spending too much money and that is why they should now keep the Euros together and save money, reducing expenses. Even in times of recessions the Merkel government praised the way of austerity as the only way out of the crisis.
The guild of Germany
It was easy for Merkel & Co. to argue that way – Germany had its own trouble but came relatively smooth through the crisis due to the huge trade surplus and its strong export driven economy. Germany got richer on the back of the the countries in the south. And now those countries in deep trouble are punished a second time as the medicine prescribed by the European Council – or better by the Merkel government – is austerity policy which produced even deeper economic and social problems so far.
“No alternative” is bullshit
Merkel always pushed hard for her way of solving the financial crisis in the European Union and austerity policy (implemented by the others) were her only answer offered. She also did not get tired to stress that there is no alternative to this approach.
If we look at the current key economic numbers in Europe we have to admit that austerity did not do good at all: debts are higher, economic growth is non-existent, unemployment on the rise and in addition to the economic problems the societies are facing huge social unrest that is getting louder day by day. Austerity is not the only way and it is also not the one that might bring success. Just look at those three pieces and you will understand that austerity policy and Merkels approach to the financial crisis in the European Union is just wrong:
First piece comes from the Blog of the London school of Economics:
The second article can be found in the current issue of Foreign Affairs – some lines can be read here:
The third source is from the Fundación Alternativas and Friedrich-Ebert-Stiftung:
It would be good for Germany and for the European Union if Merkel would loose the general election in September. This German conservative government has done no good to Europe and were just doing national politics for the good of Germany. In the long run Germany will only prosper in a functioning European Union but this is obviously not on Merkels agenda.
Post picture by infomatique CC BY-SA 2.0