Von Der Leyen’s Soviet solution to the energy problem. Or how to transform a transient crisis into a permanent one
Today the president of the European Commission intervened during the Strasbourg plenary to confirm the Commission's guidelines in dealing with the energy crisis, confirming the Soviet vision of the economy and the poor understanding of the true market mechanisms.
What does Von Der Leyen propose? To raise 140 billion euros to amortize the impact of bills on citizens. A perfectly insufficient figure, almost laughable, considering that Germany alone allocates 65 and the United Kingdom, outside the EU, but with the same problems, over double. So the figure mentioned by the commission is absolutely inadequate even when compared with that put in place, in theory, by Italy and equal to only 13 billion.
To understand the Commission's distorted Soviet mentality, however, we must also evaluate the sources considered: on the one hand by taxing the extra profits of renewable sources, on the other by asking for a contribution from the companies that deal with fossil energies. If apparently it seems like a move of social equity, it does not consider that the current crisis is a crisis of scarcity of supply whose only solution is precisely an increase in the availability of the scarce energy good, both from the point of view of electricity and from the gas and other energy sources including fossils. On the contrary, cutting the resources of energy companies, of any kind, reduces the possible investments in this sector in crisis. Therefore, an adequate creation of the offer is prevented. The commission should, if ever, have tied these resources to reinvestment in the energy sectors and left a free hand to individual states in intervening in favor of consumers and producers, excluding these interventions from the stability pact and encouraging the ECB to intervene by supporting the debt. , at least for a specific period of time.
As always, the Socialist-Soviet Commission only remembers the mechanisms of the market when it comes to favoring some large financial group or frightening the more democratic nation states. Otherwise, he uses a managerial approach worthy of the best, or worst, Brezniev, only to complain about Putin …
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The article Von Der Leyen's Soviet solution to the energy problem. Or how to transform a transitory crisis into a permanent one comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-soluzione-sovietica-della-von-der-leyen-al-problema-energetico-ovvero-come-trasformare-una-crisi-transitoria-in-una-permanente/ on Wed, 14 Sep 2022 17:15:12 +0000.