To criticize or imitate Germany, that is the problem

Germany continues to manage its economic policies without asking for help from anyone, using instruments that are perfectly compatible with its own Constitution and the European Treaties.

At this point we have only two possibilities, we can criticize Germany for anti-European behavior, or imitate it in the search for autonomous national solutions that could make the European Union more stable and homogeneous.

Let's try to analyze how Germans manage their economic policies:

1) their public debt, certainly lower than ours, is not calculated in the same way, because for example the debt of the Lander and their most important public bank, the KFW, is not considered, while we add up both the debt of the Regions and of the CoP;

2) on 29 September 2022 it announced a 200 billion euro "shield of economic defense against the consequences of the war of aggression in Russia", in defiance of all the constraints of Maastricht;

3) has more than 50% of public banks with which in 2020 it guaranteed the creation of 820 billion euros for its businesses;

4) decided to nationalize Uper, their largest energy supplier, to avoid bankruptcy, because it would not only involve many layoffs, but the risk for the country to remain without the largest energy supplier;

5) for years it has been issuing millions of pieces of coins from collections exceeding 2 euros, 5 and 10 euros, which are valid in their territory and for which they receive all the seigniorage.

Why don't we do it too?

Instead of criticizing, as many are doing, the autonomous policies that Germany is doing to facilitate and support its economy, we could actually decide to adopt solutions and tools that allow us too to make autonomous economic policies in favor of our economy. real.

We are facing a dramatic economic and social crisis: increase in government bond yields, collapse of financial markets, increase in energy costs, decrease in domestic demand, bankruptcy of small and medium-sized enterprises, consequent banking crisis, economic recession, decrease in tax revenues, increase in public debt and interest costs. , etc…

We need an urgent financial plan to support the real economy.

There is no longer the time to negotiate with Europe another form of common debt such as the PNRR, of which little or nothing has arrived after two years, also because there is no political will in the other states.

If we want to solve the problem, Italy must use new tools to find the necessary financial resources, without increasing public debt and without borrowing money from the financial markets or the European Union.

In this previous article, which I wrote with Paolo Becchi and published on Nicola Porro's website, you will find the description of an Economic Revival Plan worth 1000 billion euros in two years, which could solve all our problems once and for all, without increase foreign debt or the European Union.

https://www.nicolaporro.it/credito-dimposta-come-aiutare-gli-italiani-senza-aumentare-il-debito/

Let's try to analyze how the solutions adopted by Germany could be declined, using the solutions we proposed in the Economic Revival Plan, that is, the tax credit, the public bank and savings accounts:

1) without changing the voices of the calculation of our public debt, we still know that a debt becomes risky when it is held by foreign subjects who place conditions on our policies, be they the financial markets or the European Union. Therefore it is better to use tools such as savings accounts because in this way the public debt returns to the hands of Italian savers, there is no more blackmail and interest is reinvested in our economy.

2) if we want to implement expansionary policies without increasing public debt, we have the possibility of using tax credits that do not lead to an increase in public debt, but only a loss of future revenue, amply compensated by the increase in revenue in the first years.

3) we can use the Medio Credito Centrale, expanded by also acquiring Monte dei Paschi di Siena as Banca Popolare di Bari was acquired, in order to finance our companies with at least 300 billion euros of new loans to compensate for the decline in bank credit of the last years.

4) we too can nationalize Eni and Enel and return to manage a precious and primary asset such as energy in the exclusive interest of the State and of all of us citizens and businesses.

5) we can also issue several collector coins of 5 and 10 euros every year in millions of pieces, which are valid as legal tender only on our territory, so that the seigniorage obtained can be used precisely to enhance our monumental public heritage and artistic.

We have the possibility to imitate Germany in using new instruments to finance our expansionary economic policies, without increasing the public debt towards the financial markets or the European Union and without violating the Treaties.

Why not do it?

Fabio Conditi

President of the Positive Money association https://monetapositiva.it/

Petition on the $ 1 trillion Economic Revival Plan:

https://www.change.org/p/piano-di-rinascita-economica-da-1000-billiardi

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The article Criticize or imitate Germany, this is the problem comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/criticare-o-imitare-la-germania-questo-e-il-problema/ on Tue, 11 Oct 2022 11:00:43 +0000.