Draghi calls for a fiscal union only to provide an alibi for the failure of the EU
Mario Draghi wrote an interesting article which, hiding behind the alibi of the lack of fiscal union, does nothing but underline an objective reality: the Euro has failed, the EU has failed and not even the big bureaucrats are doing very well.
The Euro failed for the reasons that Professor Guarino had clearly already identified at the time: a currency cannot exist without a state behind it to collaborate with and which implements the fiscal policies necessary for economic growth. There cannot be a neutral monetary policy on the one hand and an active fiscal policy on the other. If there is no monetary policy, there is no fiscal policy, but this completely disarms the states, which no longer decide anything, as well as betraying the democratic basis of the West itself.
Draghi admits that his monetary policy since 2012, the "Whatever it takes", has not been the solution to the problems of the Euro, but a palliative. The former governor has only provided a sort of monetary morphine, anesthetizing the economic and fiscal differences with a large drip of negative rates, but this has not resolved the crisis, it has only made it less painful. The reasons for the failure of the Euro have not been eliminated, only made less painful.
The disease is advanced and is approaching its final state: the industrial crisis is evident, self-evident. The demographic crisis is being used as a justification for an uncontrolled migration policy which does not renew, but destroys Europe. The innovation crisis has transformed the EU into the world center of bureaucratisation, from what was once the center of innovation, research, creativity and fashion.
Draghi therefore advises the way not for saving Europe, but for that bureaucratic and power class that created the problem itself. Since the single monetary policy has failed, then let's create a single fiscal policy, handing it over to an undemocratic power that knows nothing of Europe, let alone the world, outside the confines of the Brussels bubble. Since climate policies have not destroyed industry enough, then the solution is more climate policies, which destroy industry and agriculture more radically. Since the gap between democracy and power has not yet been sufficiently realized, let us give irresponsible and unelected bureaucratic bodies even more power, so that they govern in an even more undemocratic and absolutistic way. Draghi's call is not towards completing the federal Europe that no one wants, but an appeal to irresponsible elites to complete the Malthusian job of destruction
The always excellent Musso sees Draghi's speech as a warning to Germany that it cannot go ahead in this way, precisely because Berlin, with the mad attempt to become a "green world leader", has renounced its role as European economic leader. It cannot lead welfare, nor can it lead the defense of the EU. The war in Ukraine revealed the German industrial bankruptcy: without Washington, Putin would dine amiably in Kiev. Now the only way forward for the EU would be to return to Darwinian competition between single states, or homogeneous aggregations of them, that generate new ideas and with currencies that support economic growth and adapt to economies, but I do not believe that we will pursue it. The elites are still too strong and will try to take everyone down with them rather than give up their badly earned power.
Europe is heading towards an economic and demographic coffin and Draghi laa is helping along the way. A beautiful coffin, green in colour.
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The article Draghi calls for a fiscal union only to provide an alibi for the failure of the EU comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/draghi-chiama-allunione-fiscale-solo-per-fornire-un-alibi-al-fallimento-della-ue/ on Thu, 07 Sep 2023 09:00:58 +0000.