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The Financial Times admits the defeat of the EU, but does not draw conclusions: Europe’s strength lies in diversity, not in union

2 years babelfish

The Financial Times published an interesting article entitled: " The EU Plan to regain competitiveness" which is already a step forward because it admits that competitiveness has been lost in the EU and, in any case, there is no talk of a real plan, the which makes it all a little inconsistent.

Moreover, the data presented, which are nothing more than re-elaborations of data already known to Scenari readers, are quite clear and we present them to you quickly. Let's look at the data quickly:

  • First of all, the growth of the EU was lower than that of the United States and even of a mature economy like that of Japan, which in the 1990s was considered lost.

  • So the size of the total European economies, with or without the latest entries, is an ever-decreasing percentage of the US economy. Practically, if the economy of the 27 was 70% of that of the USA in 1995, now it is only 50% of that of the Stars and Stripes
  • Therefore, the labor productivity of the EU countries is increasingly detaching itself from that of the USA, due to the combination of poor productive investments and Kaldor's second law , the one according to which productivity is directly proportional to the volume of production, a law which obviously it is always ignored by the FT and other newspapers that are based on finance and avoid the problem of income distribution and demand

The data is discouraging, but I think you should already know it if you read scenarios. It is interesting that an international finance newspaper is finally talking about it and that it takes note of the profound failure of the European Community system, created not to enhance the economies of countries, but to repress them with unrealistic, bizarre and insanely bureaucratic legislation.

So, after seeing the problem, the Financial Times is unable to grasp the causes and the solution. First of all, the newspaper states that the "Trio of Italian technocrats" Letta, Draghi and Monti should try to solve the problem by indicating the solution, when these very technocrats are part of the problem both because they have cultivated, at a national level, austerity policies that then they are the basis of European growth problems, or they are the expression of the bureaucratic Goliath which is the Commission's greatest evil. None of the "Ambitious Objectives" set by the Commission itself are ever achieved because they are unrealistic and self-sabotaged by their own bureaucracy, even when apparently simple like the million bullets to be delivered to Ukraine.

Instead, more "common market" is called for, that is, more bizarre rules, more ineffective controls, more bureaucratic stupidity, instead of recognizing that the competitiveness of European countries comes from the opposite, from the ability to let them do what they want, if ever by supporting them financially with a monetary policy that is perhaps not like the Japanese one, but which, at the very least, keeps faith with the missions of any central bank on planet Earth: monetary stability, growth and defense of the national debt.

Instead, in the EU people expect to be able to run with their feet tied. It can only end with a fall.

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The article The Financial Times admits the defeat of the EU, but does not draw conclusions: Europe's strength lies in diversity, not in union, it comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-financial-times-ammette-la-sconfitta-della-ue-ma-non-ne-trae-le-conclusioni-la-forza-delleuropa-e-nelle-diversita-non-nellunione/ on Mon, 06 Nov 2023 08:00:07 +0000.