Etiqueta: crisis

From a european crisis to a more united Europe

albert 1 Comment

Europe in a moment of major crisis. Crisis means opportunity. At the end of this crisis Europe should become (if it wants to still be relevant internationally) a real federation of nations.

One of the biggest obstacles for this are the state nations (France, Germany, United Kingdom, Spain, ) which were created around the 18th century. Those were times of expansion, colonization and protectionism but nowadays we should move towards a federal Europe of the nations. The european nations must become a part of something bigger. I do believe that feeling European citizenship before being, in my case, Catalan is what we should aim for.

This process has already started, on one hand the current crisis has been caused by creating a currency union without a fiscal and political union, because the fear of nationalistic states to give up control. The imbalances between the different economical cycles without the tools to correct them through a unified fiscal policy is one of the crisis of the southern european countries.

Secondly, there is also, the north and south crisis. The northern countries, understandably, don’t want to keep subsidizing the south and have setup firewalls. The south must change its ways, tackle corruption and a different approach to working ethics.

Finally, the internal expansion. Catalonia, Scotland, Flanders, Wales, Euskadi, are some of the european nations still trapped within the borders of the old medieval state-nations. These nations need their voice to be heard in equal rights with all the other European nations. Without them Europe is not complete. And by allowing their voice to be heard Europe will show democratic respect to all cultures and nations within it. Internal expansion must become just as normal as divorce is now in civil law.

This will be the challenge of our time, to implement all these changes. To become Europeans before Catalan, French or German but still maintaining our culture and identity. If we can achieve this Europe will be in a position to be decisive power in the world and to influence. Otherwise a fragmented Europe will become irrelevant and impoverished.

I like the European lifestyle. Europeans have fought for centuries to achieve social advances and people’s rights and in my experience it is the continent in which people have the best chance of achieving a good standard of living. The model is not perfect, it is also very uneven depending on the country and is certainly threatened by the current crisis but is one to be taken into account.

To save it we must move forward. Towards a more fair society. We have to prove that this model is sustainable. I believe in Europe. Will Europeans be able to drop their nationalistic prejudices and become a united Europe?

Will Europe just sit and watch Spain’s financial suicide for nationalistic reasons?

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The Spanish government is using the Autonomous Communities as a smoke screen to hide their disastrous handling of the situation, and use the crisis as an excuse to give Catalonia the coup de grace, eliminate its self government and accomplish the old Spanish dream of a culturally uniform state.

Blaming the Autonomous Communities as the main culprit of the crisis is a ridiculous argument since Catalonia only holds 6.5% of the Spanish public debt while sustaining a fiscal deficit of 8% of its GDP every year without which its finances would be very different. The Catalan Government already did its homework and last year cut its budget down by 10% and has announced further 5% cut in civil servants’ salaries this year.

The Generalitat has raised a flag claiming that the State is planning to look for an excuse to intervene Catalonia by starving it from its resources, forcing the Generalitat’s bankruptcy and then coming to the “rescue”, to prove the Catalan government’s “incompetence”.

In the meantime international press and European governments are worryingly buying the Spanish government’s discourse. Instead on focusing on Spain’s real issues.

After last year’s elections it was time for Spain to reform their oversized state structure inherited from Franco’s regime which has the following traits:

  • all power centers are in Madrid with a strong breed of privileged public servants
  • economy based on former state monopolies, like Telefonica, used as employment agencies for retired politicians and their relatives with a captive market subsidizing them
  • an oversized army
  • irrational infrastructures spending
  • oversized welfare services aimed at keeping Spanish voters happy bringing an illusion of progress

All of this subsidized by the (formerly) richer Catalan countries and the funds coming from Europe. But for the last 30 years instead investing in the modernisation of its economy Spain has created the biggest real estate bubble in the world. Catalan politicians are also partly to be blamed for allowing this to happen. Now the fountain has dried up. After the draining of resources Catalan countries are in a precarious financial situation and the European funds are not flowing anymore.

But even now the Spanish fiesta goes on. Boosting Catalonia’s economy, its most dynamic area, which represents 20% of its economy and 27% of the exports, would be the only hope for the Spanish economy to get out of the crisis Spain is instead ignoring its own laws and bringing it down.

An example, this year 925 million euros are budgeted for the high speed train to Galicia, which would not even make sense in a good economy while refusing to pay Catalonia 978 million euros pending from 2008 and 2009 and announcing a cut of 45% infrastructures budget in 2012 for Catalonia compared to last year, infringing Spanish law.

But the markets are unforgiving and don’t believe that the changes Rajoy is making will put things under control. The intervention of Spain’s government is practically a matter of time.

Why this irrational behaviour?

In practice Spain does not acknowledge Catalonia as Spanish, it is instead treated as a colony from which to extract resources until depletion. It will not hesitate to sacrifice Catalonia to protect its privileges and state structures from the cold of the crisis even at the expense dooming Catalonia’s, Spain’s (and Europe’s?) economy.