Thursday, 11 April 2013

EU Commission should be more daring


You ask EU Economic Affairs Commissioner Olli Rehn and his team what is the solution for country A or B or C to return to growth and you always get the same prescription. They seem to know only one mantra. It has three lines: augment your exports; lower your labour costs; cut your public debt.

I wonder.

If every EU should boost its exports, where are the import markets?

How far should one lower the labour costs to be competitive with China or Bangladesh?

Why should we cut public debt so dramatically at a time of recession? Why can’t we get the European Central Bank’s statutes changed in order for it to be able to do some quantitative easing? Is Rehn afraid of saying that because he does not wish to offend Berlin?

The point here is very simple. We expect the EU Commission to tell the citizens of Europe what should be done effectively, together and on a country by country basis. They at the Commission are paid to produce an independent advice.

Then, Berlin, The Hague, and other capitals and their national politicians will respond if, yes or no, they want to do it.

A Commission that only recommends what the EU political masters want to hear is useless.  

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