Project for Philosophical Evaluations of the Economy |
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Monti’s Letter to the EU Commission
Dialogue with the Alter Ego on the above, first drafted on Feb. 23, published on Feb. 24, 2012
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Question by Alter Ego of Noah denkt™ (AE): Has Noah denkt™ taken note of the pro-growth/pro-stimulus letter
that 12 EU-countries (including Britain, Italy, the Netherlands, Spain, Finland, Ireland, the Czech Republic,
Slovakia, Sweden, Poland, Latvia and Estonia) have sent to the European Commission?
Answer by Noah denkt™ (Nd): Are you talking about Mario Monti’s initiative that details several policy areas where
more government-inspired reform and investment might make sense, especially in these austerity times of ours?
AE: Correct!
Nd: Well, we haven’t received a copy of the letter but we have read about it in the press.
AE: And what do you make of this proposal?
Nd: If it is true that the letter calls for
then, the only thing we would object to is the second but last point which, in our reading, suggests that
bureaucrats should run venture capital funds.
AE: So what is your overall judgment then of this letter? Is it a good initiative or is it one that is not so welcome?
Nd: We think that there are proposals in there that are worthwhile discussing.
AE: And would you have signed this letter if you had been asked to do so?
Nd: Probably not.
AE: Why is that?
Nd: Because this initiative is being viewed by too many people, and perhaps rightly so, as just another, perhaps
more crafty, way to tell Germany and France that they should agree to EURO-bonds and be less forceful about
promoting their own debt crisis solutions.
AE: Well, you yourself have occasionally criticized Ms. Merkel’s reticence in this or that issue. Why then can’t you
join in with the other 12 European governments at this point?
Nd: Because we understand why Germany and France are cautious about making more money available for so-
called stimulus packages in Europe. The problem simply is, that too many governments are likely to stop being
serious in their reform and austerity efforts once the immediate need for rigorous restructuring is taken away from
them. In other words, you cannot really trust a lot of governments that they will actually implement what they have
promised to do earlier.
AE: Why are you so skeptical here?
Nd: Well, Greece didn’t do all of what it promised to do earlier. And this constant whining and crying about the
German-led austerity approach doesn’t inspire confidence either.
AE: So, in your mind, it is just talk when Monti and the other heads of state reiterate their commitment to fiscal
discipline and structural reform?
Nd: Well, Noah denkt™ would probably be inclined to trust Mario Monti’s free market credentials. But there is so
much opposition in many parts of Europe to the reality of the global marketplace, and to financial markets in
particular, that it seems more prudent to us to be careful here. You just have to read El País or to listen to
Francois Hollande to understand how huge the resistance to a true and meaningful reform effort actually is.
AE: So, what do you suggest then?
Nd: Well, do not promise more money until, you have some certainty that the suspects are in deed delivering on
their promise.
AE: In other words, you are by and large endorsing Ms. Merkel’s handling of the European debt crisis? And that
even though you yourself had been more lenient earlier on?
Nd: Correct.
Dialogue with the Alter Ego on the above, first drafted on Feb. 23, published on Feb. 24, 2012
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- “LA REVUELTA CONTRA LA HEGEMONÍA FRANCO-ALEMANA EN LA UE GANA TERRENO …
La hegemonía del eje francoalemán en le diseño de la politica económica european, que tan
ineficiente ha resultado frente a la crisis, está encontrando una incipiente y creciente contestación"
El País, Feb. 23, 2012
Question by Alter Ego of Noah denkt™ (AE): Has Noah denkt™ taken note of the pro-growth/pro-stimulus letter
that 12 EU-countries (including Britain, Italy, the Netherlands, Spain, Finland, Ireland, the Czech Republic,
Slovakia, Sweden, Poland, Latvia and Estonia) have sent to the European Commission?
Answer by Noah denkt™ (Nd): Are you talking about Mario Monti’s initiative that details several policy areas where
more government-inspired reform and investment might make sense, especially in these austerity times of ours?
AE: Correct!
Nd: Well, we haven’t received a copy of the letter but we have read about it in the press.
AE: And what do you make of this proposal?
Nd: If it is true that the letter calls for
- a strict application of Basel III rules on bank capital requirements,
- EU-wide competition in the services sector (which, by the way is pretty regulated in Germany)
- further action to reduce the number of regulated professions in Europe' (another feature of the German
economy ) - the elimination of “unjustified regulatory barriers.”
- the conclusion of free trade deals with India, Canada, Ukraine, and members of the Association of
Southeast Asian Nations (ASEAN) - the pursuit of trade talks with Japan and Latin America.
- the development of a digital economy with better copyright rules and more broadband;
- the development of a more unified European energy market;
- support for research and start-up companies, through an EU-wide venture capital regime;
- and a reduction of EU red tape
then, the only thing we would object to is the second but last point which, in our reading, suggests that
bureaucrats should run venture capital funds.
AE: So what is your overall judgment then of this letter? Is it a good initiative or is it one that is not so welcome?
Nd: We think that there are proposals in there that are worthwhile discussing.
AE: And would you have signed this letter if you had been asked to do so?
Nd: Probably not.
AE: Why is that?
Nd: Because this initiative is being viewed by too many people, and perhaps rightly so, as just another, perhaps
more crafty, way to tell Germany and France that they should agree to EURO-bonds and be less forceful about
promoting their own debt crisis solutions.
AE: Well, you yourself have occasionally criticized Ms. Merkel’s reticence in this or that issue. Why then can’t you
join in with the other 12 European governments at this point?
Nd: Because we understand why Germany and France are cautious about making more money available for so-
called stimulus packages in Europe. The problem simply is, that too many governments are likely to stop being
serious in their reform and austerity efforts once the immediate need for rigorous restructuring is taken away from
them. In other words, you cannot really trust a lot of governments that they will actually implement what they have
promised to do earlier.
AE: Why are you so skeptical here?
Nd: Well, Greece didn’t do all of what it promised to do earlier. And this constant whining and crying about the
German-led austerity approach doesn’t inspire confidence either.
AE: So, in your mind, it is just talk when Monti and the other heads of state reiterate their commitment to fiscal
discipline and structural reform?
Nd: Well, Noah denkt™ would probably be inclined to trust Mario Monti’s free market credentials. But there is so
much opposition in many parts of Europe to the reality of the global marketplace, and to financial markets in
particular, that it seems more prudent to us to be careful here. You just have to read El País or to listen to
Francois Hollande to understand how huge the resistance to a true and meaningful reform effort actually is.
AE: So, what do you suggest then?
Nd: Well, do not promise more money until, you have some certainty that the suspects are in deed delivering on
their promise.
AE: In other words, you are by and large endorsing Ms. Merkel’s handling of the European debt crisis? And that
even though you yourself had been more lenient earlier on?
Nd: Correct.
| © Landei Selbstverlag, owned by Wilhelm ("Wil") Leonards, Gerolstein, Germany. All rights reserved. Reminder: Noah denkt™ is a project of Wilhelm ("Wil") Leonards and his Landei Selbstverlag (WL & his LSV). Consequently, all rights to the texts that have been published under the Noah denkt™brand name are reserved by WL & his LSV. The commentary and the reasoning that was provided on this page is for informational and/or educational purposes only and it is not intended to provide tax, legal or investment advice. It should therefore not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or any issuer by WL & his LSV or its Noah denkt™ Project. In fact, WL & his LSV encourage the user to understand that he alone is responsible for determining whether any investment, security or strategy is appropriate or suitable for him. And to leave no doubt as to what this means we urge our user to also note our extended Legal Notice. |
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| Keywords: politics of austerity and growth, saving the EURO, European debt crisis, debt crisis in the EURO-zone, opposition against Franco-German leadership, rebellion against Germany's austerity diktat, Germany dictates austerity, stimulating growth in Europe, anti-German initiatives in Europe |