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The single market is looking wobbly

economist.com

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Re: The single market is looking wobbly

#51

Post by AnonCoward42 »

> Because of healthy state finances, it can afford to borrow up to 5% of GDP to create a “protective shield” that will insulate Germans from the cost of higher energy.

I find this kind of insulting to Germans actually, since the energy prices were already high to begin with in Germany and the personal wealth of the lower 90% is actually so low that it is not hard to imagine how quickly society can collapse after the government has set so much money on fire just because they can.

The problem with this "protective shield" is not that the intent is unjustified, but it comes way too late and I don't think it is going to help for long. I am honestly not sure there is a solution at this point anymore. They print money to dampen the price hikes, therefore increasing prices/devalue currency, therefore they need to print money.

Re: The single market is looking wobbly

#52

Post by tkk23 »

nalaz wrote: post #34
mmarq wrote: post #21

Earlier quoted context omitted.

The Latin block (Southern Europe??) countries joined the euro to cut their interest rates, and that happened. The periphery is poor because it has been ruled by embarrassing governments for decades.

The periphery is and will always be poor because of cultural problems. People make the politicians, not the other way around.

If you look at the USA then the profits are made at the periphery. Profits can be made anywhere. Sooner or later, they will be made where living is more pleasant and that's at the European periphery.

Which cultural problems exists that keeps the periphery poor? I would like to argue that the cultures of the periphery are what will attract people and customers and what will allow the periphery to develop.

Re: The single market is looking wobbly

#53

Post by unity1001 »

This just helps Germany to avoid the repercussions of their gas supply going away.

After improverishing other European countries by pushing to them the IMF-style neoliberal loans after forcing them to bail out PRIVATE German banks in those countries back in 2008 and then blaming the people of those countres for 'being lazy', they will be scarcely motivated to help Germany that way.

Especially considering how German industry's competitiveness hangs on other countries' industries being weaker, bringing the Euro down to keep German exports competitive.

This is a chance for all the other European countries in recovering their industries back - German industry shutting down means that domestic and foreign markets that those industries were dominating will now be open to other European countries. Couple this with the Euro going down and making European products more competitive, you can understand that why other countries are not so enthusiastic in bailing out Germany.

Re: The single market is looking wobbly

#54

Post by netsharc »

SevenNation wrote: post #41

The article is really about something called the NGEU: > ... Thus, as the pandemic raged, a novel form of European solidarity was agreed in the form of a €750bn bail-out fund, Next Generation eu (ngeu). The money is a form of redistribution: it is borrowed by the eu, but will in effect be paid back by its richest members while being doled out to its poorest. This gave fiscal capacity for southern Europeans to stimula…

I don't think it's the NGEU, that was for Covid, but recently Germany just said it will borrow 200 billion Euro to be distributed to German businesses as help, and the article is saying that's not very fair.

Re: The single market is looking wobbly

#55

Post by jlmorton »

KerrAvon wrote: post #20
systemvoltage wrote: post #18

Earlier quoted context omitted.

This kind of ad-hominem happens on every Economist thread here. First order of business is to take a jab at the Economist. That just means factual things are being reported and people don't want to confront reality.

The Economist lost a lot of credibility with some of us around the turn of the century, when it fatally misunderstood US politics and wrote columns addressing people like Karl Rove and asking them to follow their better nature. (Karl Rove does not have a better nature.)

Maybe, but then there was this [1].

[1] https://www.economist.com/leaders/2004/05/06/resign-rumsfeld

Re: The single market is looking wobbly

#56

Post by yrgulation »

inglor_cz wrote: post #49
ricardobayes wrote: post #38

Earlier quoted context omitted.

That's an outdated view, Spain is the fourth biggest economy in Europe, and are net contributors into the EU budget.

Go to Sevilla or Malaga and look around. Houses have old facades, people drive old cars, pavements have been last repaved 20 years ago and meeting a highly educated beggar is a common occurrence. That is not how a wealthy community looks like. Spanish economy may be nominally big, but random folk in the streets do not seem well off. The contrast to, say, Austria or Denmark, where most of the population seems to live…

Nurses are underpaid everywhere in europe. Its a common issue with public healthcare systems.

Re: The single market is looking wobbly

#57

Post by gsatic »

SevenNation wrote: post #41

The article is really about something called the NGEU: > ... Thus, as the pandemic raged, a novel form of European solidarity was agreed in the form of a €750bn bail-out fund, Next Generation eu (ngeu). The money is a form of redistribution: it is borrowed by the eu, but will in effect be paid back by its richest members while being doled out to its poorest. This gave fiscal capacity for southern Europeans to stimula…

Not too different from what happens in China or India.

The imbalances between the rich provinces and poor ones are much more than in the EU.

Re: The single market is looking wobbly

#58

Post by yrgulation »

tkk23 wrote: post #52
nalaz wrote: post #34

Earlier quoted context omitted.

The periphery is and will always be poor because of cultural problems. People make the politicians, not the other way around.

If you look at the USA then the profits are made at the periphery. Profits can be made anywhere. Sooner or later, they will be made where living is more pleasant and that's at the European periphery. Which cultural problems exists that keeps the periphery poor? I would like to argue that the cultures of the periphery are what will attract people and customers and what will allow the periphery to develop.

Germany is making a killing in selling their cars and tools to the “periphery”. East europe being their largest export market - some 30%.

The main cultural issues that keep the periphery poor are those stemming from the “core”. Always shitting on the south and east is what keeps those regions stagnating. What upsets me is that they turn the other cheek instead of slapping right back.

Re: The single market is looking wobbly

#59

Post by netsharc »

chrisseaton wrote: post #8
secondcoming wrote: post #6

Earlier quoted context omitted.

And?

I wonder what motivation the British could have for saying that the EU's single market is looking wobbly?

Believing different entities to be similar because they share one property in common is very convenient, but is very unintelligent...

Re: The single market is looking wobbly

#60

Post by ggm »

chrisseaton wrote: post #47
YawningAngel wrote: post #44

Earlier quoted context omitted.

What motivation could we have? Most British people you talk to on the internet are distinctly unhappy about Brexit and, if anything, are motivated to talk up the single market

> Most British people you talk to on the internet are distinctly unhappy about Brexit Most voted for it. If you're in a vacuum chamber that's your problem.

> Most voted for it.

Of those who voted, a very small majority voted for it. By no means most British voters voted for it.

A reprise of the vote now would not secure the same outcome.

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