Austerity and autoritarism lead Europe to a dead-end

(12.12.2011)

The European summit of today just confirmed again the loyalty of the EU towards the interests of the markets and its will to make the European people pay for the crisis of the banking and financial system.

Instead of calling for investment in social and economic development in order to reduce the deficits, as it has been advised by the ETUC amongst others, the heads of states and the European governments have agreed on the “budgetary discipline” through the “golden rule”, the automatic sanctions and a “right of interference” of the EU into the national budgets. Not only that no consultation of the people is envisaged, but furthermore, they want to curb the national sovereignties in order to impose austerity.

Excluding any intervention of the European Central Bank to repurchase directly the debt of states in danger and financing projects of general interest, the leaders of Europe make an exit out of the crisis impossible again and deliver Europe on a plate to speculators.

The tools – fund and mechanism – of so-called “stability” have as their only goal to guarantee the income of banks. They are useless for women and men who suffer from the crisis. Public control of banks is needed, in order to be transparent on the multitude of toxic assets which still circulate across Europe and to develop a credit policy serving the real economy.

It is a predicted chaos. The EL denounces the irresponsibility of European leaders who persist in their dogmas when all proof shows that these measures are leading to a recession, to the division of the EU in various areas, to a widening gap of inequalities and lead Europe to a dead-end.

An alternative exists out of the crisis. It rests on the full exercise of democracy, the public control of banks, the changing role of the ECB, tax justice and the increase of the citizens’ revenues. For the EL, if changes have to be made in Europe, they have to answer the needs of the people and not those of the markets.

European Left Party, 9 december 2011