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Jean-Claude Juncker: The Euro is the peace-tool of the current european generation
— José Parra Moyano © PuntoLatino —
TEMAS: Europa – Jean-Claude Juncker «Europa – wie weiter?», 25.10.11. Reseña en inglés, José Parra Moyano. Ciclo de conferencias «Zukunft Europas» Schweizerisches Institut für Auslandforschung.
“The Euro is the peace-tool of the current european generation” has Jean-Claude Juncker said last tuesday 25th of October at the University of Zurich (UZH). The President of the Eurogroup and Prime Minister of Luxemburg has been able to attempt the date he arranged months ago with the students of the UZH, even he is now taking, together with european prime ministers and world leaders, the decissions that will impregnate the economic future of the states that form the EU and also of the statets that sourround it. (Photo: NZZ/Christian Beutler, 25.10.11., «Chef der Euro-Gruppe skizziert in Zürich mögliche Lösung der Schuldenkrise»).
Jean-Claude Junker has presented tonight to the students of the UZH the diffuclty of economics, as it is a disciplin which not only deals with numbers and ecuations, but also with the living standards of the citizens, and while doing this he has shown what an incredible knowledge he abut the economic world reality has.
Mr. Juncker has defended the unity of Europe in a very particular way: arguing with ideas about the peace in Europe, the shrinking relevance and influence of Europe in the world and the benefits of a brotherhood between the europeans. One could sintetize this ideas in the following three points.
1.- Today, is a militar war between the countries in Europe not possible, but a financial and economic war can happen. As well as it was the responsability of the european leaders of the past generations to avoid their citizens the suffering of a militar war, it is the responsability of todays leaders to avoid their citizens the suffering of a financial and economic war.?
2.- Europe is shrinking. The percentage of the world´s GDP represented by Europe has become smaller with the time and if the growth perspectives for China and other developing countries are fulthfill, it will become much smaller. With Demography happens the exact same thing.
3.-? Taking this to facts into account, it makes sense that Europe should keep together, in order to keep his economic weight and relevance in the future.
Of course, the unity has a price. Mr. Juncker has defended that banks that must be recapitalized with public money, should bring benefits to their new shareholders, which are the states. I would have liked to ask Mr. Junker what his opinion about the recapitalization of nations is. Should the “saved” Nations also report to their new shareholders or is the benefit of the “saving” nations just the unity? One possible answer that I can imagine is that the nations that support the saving fonds and save nations in troubles, will save themselves, because their banks are going to get the interest they have in the “saved” nations payed. That would mean that the economic strong nations in Europe will just help themselves, through helping the economic weak nations of Europe. To agree with that, one must accept the three premises presented by Mr. Juncker.
There is a problem in accepting this chain of thoughts: it takes into account sunk costs, which form the economic point of view, would be an undergraduate mistake. But as economics are deeply complex and there is no magic formula, maybe we need exceptional solutions for exceptional times.