As though the current crisis were the result of overheated wages, benefits, and a bloated welfare state instead of a financial sector run amuk.
Political scientists studying the EU have come up with this idea that there are basically two outcomes possible here: 1) The EU continues to undermine social protection at the national level and creates a new, neo-liberal European state, or 2) This attack on social protection produces a popular movement against the EU which results in a retreat from European integration.
What's interesting for me is that I see a third possibility.
That the attack on national social protection does produce a popular movement calling for greater regulation of business and social democracy. Where I differ, is that I see this movement occurring at the European level so that a new, European social democracy is the result of a crisis. It's Jean Monnet's bicycle all over again. The difference is that it's the masses not the technocrats pushing the process forward.
So basically, it seems to me that the economic elites who see opportunity in crisis could really be screwing themselves in the long term if they create a movement for social protection at the European level, for example shared wage and working conditions standards. It's not impossible.
The poorest EU state, Bulgaria has a per capita GDP about 40% of the average. In the US, the same rate is about 80%, but there is a national minimum wage, with exceptions for the states. Imagine if there was an EU minimum wage across member states, with higher wages permitted at the member state level. Isn't this really the next step in terms of economic integration? By trying to escape social regulation at the national level, the neo-liberals using the EU have concentrated power in Brussels. Right now they control that, but what happens if they lose control over that power to social democrats? I don't mean an EP election, I mean a real power shift away from an EU of member states to member states in the EU, so that there is a real, democratic, European polity. And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
There is a movement in Germany with precisely that goal. I don't know any details, but I remember seeing them campaigning in Nürnberg last year.
This was a huge part of what prompted the wildcat strikes in Britain in 2009. And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
Do you ever get the feeling that a lot of what's happening with the PIGS story is economic elites wanting to use this as an opportunity to kill European social democracy, a la the shock doctrine?
Spain is the victim of an international conspiracy focused on destroying the country's economic standing and via that the euro. That's the plain and simple view of the Spanish government, or at least its Development minister, Jose Blanco, according to an article in Monday's Expansion newspaper -- Spain's premier financial daily. ... While the economic vice, Elena Salgado, has traveled to London today to appease the spirits of investors, Development Minister, Jose Blanco, accused the "financial speculators" of orchestrating a plot against the euro and the Spanish market. "Nothing is happening in the world, including foreign newspaper publishers, is casual or innocent," said Blanco. The deputy general secretary of the PSOE denounced an "attack against the euro and the existence of" somewhat murky maneuvers "to avoid scrutiny of financial markets.
That's the plain and simple view of the Spanish government, or at least its Development minister, Jose Blanco, according to an article in Monday's Expansion newspaper -- Spain's premier financial daily.
...
While the economic vice, Elena Salgado, has traveled to London today to appease the spirits of investors, Development Minister, Jose Blanco, accused the "financial speculators" of orchestrating a plot against the euro and the Spanish market. "Nothing is happening in the world, including foreign newspaper publishers, is casual or innocent," said Blanco. The deputy general secretary of the PSOE denounced an "attack against the euro and the existence of" somewhat murky maneuvers "to avoid scrutiny of financial markets.
The comments come from a Socialist minister, but I can't help but notice the outlets that seem to be covering this. (El Mundo, Expansion ,owned by the same group as El Mundo, ABC, etc) All rightish media sources. I bet that they are not pleased, because this is precisely the kind of thing (the idea of a bank based conspiracy) that could allow ZP to rally some support around him now that he's fallen in the polls. So it seems that they are trying to paint him as paranoid, but it isn't really working.
Of course, I see Robert Rubin and the boys at Goldman Sachs in any sort of thing like this. They've become the Mr. Burns (Simpson's reference) of the financial world. And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
I think ZP has lost control of the situation narrative-wise so I don't think this will help. The whole government is in damage-control mode and I personally find Salgado's visit to The City to reassure whomever that Spain's government will cut public spending alternately ridiculous and infuriating.
See El Pais (Google translation follows)
Zapatero will appear in Congress forced by all groups The Prime Minister will go next week to report on the crisis and the European summit. "The socialist group run out of allies for help ... The Government lacked the support to stop the hearing after being PNV and CiU have joined the initial request by the PP. Other groups such as ERC also supports the conclusion of the hearing. Therefore, the chief executive will be at their request.
The Prime Minister will go next week to report on the crisis and the European summit. "The socialist group run out of allies for help
The Government lacked the support to stop the hearing after being PNV and CiU have joined the initial request by the PP. Other groups such as ERC also supports the conclusion of the hearing. Therefore, the chief executive will be at their request.
I'm thinking of writing a diary in the vein of an open letter to ZP about this situation. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
