Opinion: (М. Khazin, financial analyst, mk.ru): “Jean-Claude Trichet, a longstanding head of the European Central Bank, has called for more rigorous budgetary control. He said that the EU had shown ‘gross negligence’ by not respecting the European Stability and Growth Pact which limits the size of budget deficits. Why? The pact infractions were necessary to continue welfare benefits.…
“But then, under conditions of falling demand, the standard of living will fall as well. In other words, his appeal is pure demagogy: He gives intentionally unrealistic advice to “keep his hands clean.” Why was he silent when the states and the citizens were taking knowingly bad loans? Trichet justifies himself by saying that he had nothing to do with it: “I told them, but they wouldn’t listen to me….
“Germany is the main exporter to the US from the EU and therefore, can afford more than the rest of the EU countries. However, with falling demand in the US, its condition will deteriorate. The EU has built a pretty model based on growing demand in the US, which is built on the dollar emission, not the euro. But now the “joy” is over, while the desire to save the model built in the EU remains. Yet, it is impossible.…”
America And Europe Are Sinking Together
The Eurozone Will Fall Apart In Two Years
The Economy Is A Copy Of Social Relations