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BackIt was the fourth time that Commission President Barroso gave his address on the State of the EU before the plenum of the EU Parliament in Brussels. Barroso’s address included little that was new; however, it showed above all that the Commission is still not prepared to depart from its economic course.
“We have to shape a new normal.”
Barroso began by declaring that much had been achieved over the past 5 years, that the crisis had been consequently tackled and that now at last deficits were being reduced and necessary structural reforms were addressed. However, where Barroso gets his optimism from is a mystery: The level of debt of the states in crisis has been driven up by misguided austerity programmes, a primary surplus in the Greek budget is of no use when at the same time the debt level rose so much that, after taking interest rates into account, the scale of the budget deficit remains almost unchanged. Apart from that there is little sign of economic growth; to rejoice at growth of 0.4 percent in the 2nd quarter of 2013, would be slightly over the top. Very bleak is the situation in respect of unemployment: 26.65 million people in the EU are currently out of work, compared to 16.1 million in 2008 before the outbreak of the crisis - a disastrous development. Barroso declares here: “What matters now is what we make of this progress. Do we talk it up, or talk it down? Do we draw confidence from it to pursue what we have started, or do we belittle the results of our efforts?” When half of the young people in Spain, Greece and Portugal are without a job, the glass is not half full, but half empty.
However, more problematic than blowing its own trumpet, is the unchanged insistence of the Commission to stick to these failed neoliberal concepts, which got Europe into this situation in the first place. However, this approach is not surprising, given the fact that Barroso lets us know that the crisis has not been caused by Europe, but by the irresponsible budgetary policy of national governments. Hence, one sticks to the fairy tale that the crisis is above all the result of the policy adopted by the national states and not caused by the banks, which had to be rescued by the public sector. Here too, the dichotomy “Europe” vs. national states plays down the concrete responsibility of the Commission, because it was actually not Europe, which caused the crisis, but it was not least the policy by the Commission, which aggravated it. Barroso’s top priority remains the “unavoidable” structural reforms. This term is mainly a cover for the flexibilisation of labour markets, reduction of trade union rights and interventions in pension systems.
Barroso did not promise any major new steps, but only explained that it was now time to intensify integration, namely in such a way as it was recommended by the Commission in the so-called “Blueprint” at the end of last year. Even though it has to be welcomed that he emphasises the importance of the banking union in this context; however, the blueprint points towards tighter neoliberal economic governance. The fact that the Commission intends to publish a Communication on the Social Dimension of the Economic and Monetary Union on 2nd October will not be able to gloss over this development. Barroso’s vision of creating “a new normal” after the crisis sounds more like a threat than a new start.
“Austerity destroys solidarity”
That in spite of this Europe is not in neoliberal agreement and that all have the same inevitable neoliberal recipe for the crisis, became clear during the following debate in the European Parliament.
Hannes Swoboda, head of the Social Democrat faction in the European Parliament opened the debate with a passionate statement against austerity, which would destroy solidarity in Europe. He pointed out that just 31 fewer unemployed people in Spain last August would not be a sign of economic recovery, but a scandal. Other subject matters, addressed by Hannes Swoboda were delays concerning the Multiannual Financial Framework, the necessity of a Financial Transaction Tax and the vision regarding a continued integration in contrast to recent voices in Germany to further strengthen the national level. Swoboda’s criticism was supported by the European Left and Greens, whilst Conservatives and Liberals largely defended the agenda of the Commission.
Further information:
State of the Union address by Barroso
Barroso began by declaring that much had been achieved over the past 5 years, that the crisis had been consequently tackled and that now at last deficits were being reduced and necessary structural reforms were addressed. However, where Barroso gets his optimism from is a mystery: The level of debt of the states in crisis has been driven up by misguided austerity programmes, a primary surplus in the Greek budget is of no use when at the same time the debt level rose so much that, after taking interest rates into account, the scale of the budget deficit remains almost unchanged. Apart from that there is little sign of economic growth; to rejoice at growth of 0.4 percent in the 2nd quarter of 2013, would be slightly over the top. Very bleak is the situation in respect of unemployment: 26.65 million people in the EU are currently out of work, compared to 16.1 million in 2008 before the outbreak of the crisis - a disastrous development. Barroso declares here: “What matters now is what we make of this progress. Do we talk it up, or talk it down? Do we draw confidence from it to pursue what we have started, or do we belittle the results of our efforts?” When half of the young people in Spain, Greece and Portugal are without a job, the glass is not half full, but half empty.
However, more problematic than blowing its own trumpet, is the unchanged insistence of the Commission to stick to these failed neoliberal concepts, which got Europe into this situation in the first place. However, this approach is not surprising, given the fact that Barroso lets us know that the crisis has not been caused by Europe, but by the irresponsible budgetary policy of national governments. Hence, one sticks to the fairy tale that the crisis is above all the result of the policy adopted by the national states and not caused by the banks, which had to be rescued by the public sector. Here too, the dichotomy “Europe” vs. national states plays down the concrete responsibility of the Commission, because it was actually not Europe, which caused the crisis, but it was not least the policy by the Commission, which aggravated it. Barroso’s top priority remains the “unavoidable” structural reforms. This term is mainly a cover for the flexibilisation of labour markets, reduction of trade union rights and interventions in pension systems.
Barroso did not promise any major new steps, but only explained that it was now time to intensify integration, namely in such a way as it was recommended by the Commission in the so-called “Blueprint” at the end of last year. Even though it has to be welcomed that he emphasises the importance of the banking union in this context; however, the blueprint points towards tighter neoliberal economic governance. The fact that the Commission intends to publish a Communication on the Social Dimension of the Economic and Monetary Union on 2nd October will not be able to gloss over this development. Barroso’s vision of creating “a new normal” after the crisis sounds more like a threat than a new start.
“Austerity destroys solidarity”
That in spite of this Europe is not in neoliberal agreement and that all have the same inevitable neoliberal recipe for the crisis, became clear during the following debate in the European Parliament.
Hannes Swoboda, head of the Social Democrat faction in the European Parliament opened the debate with a passionate statement against austerity, which would destroy solidarity in Europe. He pointed out that just 31 fewer unemployed people in Spain last August would not be a sign of economic recovery, but a scandal. Other subject matters, addressed by Hannes Swoboda were delays concerning the Multiannual Financial Framework, the necessity of a Financial Transaction Tax and the vision regarding a continued integration in contrast to recent voices in Germany to further strengthen the national level. Swoboda’s criticism was supported by the European Left and Greens, whilst Conservatives and Liberals largely defended the agenda of the Commission.
Further information:
State of the Union address by Barroso