Dear German friends (2) a problematic relationship

A few things we do not bear anymore

The previous blog was intended to resume the lessons of french last elections, namely that the European Union and the Euro are likely to explode in the absence of radical change in European policy, if our German friends do not cease to want a Europe that is a Bigger Germany, to dominate it, to run it their way.. 

Let’s just compare  Dear Mutti, a lowbrow grocer, to those great German Statesmen, the two Helmut Kohl, recently deceased, and Schmidt!

A few examples of what went wrong

The Greek crisis: the subprime crisis (Hey, by the way, what about Deutsche Bank) has turned into the debt crisis of states, hitting heavily the European weak link that was Greece. Indeed, the systematic cheating of the public accounts in Greece (with the complicity of whom?), the inexistence of  a state worthy of the name in Greece, that  could not last and was threatening the European area – explosion was possible. Okay, had to hit fast and hard, and you did it.

But, as good protestant, you could grant no absolution and had to punish the sinner until he cries tears of blood. The  best evidence of this will to punish is that it led to decisions that were detrimental, not only for Grece, but for all of Europe. Your delays, your concerns in the implementation of the European stability mechanism, in the buying of national  state debts by the Central Bank have cost billions. Today, even while the IMF insists on the necessary cancellation of part of the Greek debt, you ‘re still delaying this measure, indispensable to a dying Greece... for the cause of German elections. It's shameful, it is contrary to the purpose – for god sake, how the Greeks could rebuild a State in those conditions?

Deficits: of course, a current account deficit, unreasonable and renewed year after year, is not tolerable, nor sustainable for a State. But finally, intra European trade is such that the deficit of your partners contributes heavily to the surplus which you are so proud of. In the end, if we are a European Community, the deficit of these European countries towards Germany ihas no more importance than that of Wyoming towards California, right? It's across Europe that we must judge the deficit-Are we a community or not ?

And then, in times of crisis and moreover, when  interest rates are at their lowest, deficit  is better than recession, right?

Finally, there are also political considerations. Can you remember ? , The reunification of Germany with parity between East and West marks was economically wrong, but politically inevitable. Kohl did it, we understood it, a good  German reunification was necessary for Europe And, due to convergence towards euro, we had to endure interest rates greater than we might have had.  Instead of defending foot to foot your immediate interests., you should think of political agenda. Kohl and Schmitt did !

Abandon of nuclear power, for purely demagogic reasons, with the reactivation of coal or even lignite plants: this  was a crime against the economy (a more expensive energy), against global warming, against public health (thanks for the episodes of pollution). You have done much worse than this poor Trump, with its coal mines in Wyoming which no sound industrialist would  operate ! You did much worse, but no one seems to notice. Bravo ! Let’s agonize Trump !

Immigration : one day, you encouraged all refugees to immigrate and to come to Germany. Orban then decided to let all migrants who were piling up in the Hungarian stations, oddly, you were not pleased at all. Then you wanted to decide which country will host refugees and how many ( who gave you the power to do this ?).  Finally, sheepishly, you entered into an agreement of sequestering refugees with the Turkish neo-sultan, and now we depend on him, threatening to open the valves whenever he dislikes something (an article, a song, a sermon). Brilliant !

But who gave you a mandate to lead all  European Nations immigration policy? We understand that your catastrophic demography (by the way, why in a  so well governed country?)  incites you to encourage immigration, but this isn't the choice of everyone.

Your policy of competitiveness by low cost: the average hourly wage in France and Germany is about the same. But inequalities are much stronger in Germany. While some high technology sectors remained protected, in many others,  you ‘ve given up your strong industrial traditions for a policy of low quality, low wages. You have 22.5% of “working poors” against 8.8% in France (21.3% in England, 3.8% in Belgium). Your policy has not done miracles, it has simply turned unemployed into poor workers. You have even invented reverse auction -  work assignments at least asking. This is a policy that values work! You have completely unbalanced markets, french pork producers facing your giant abattoirs populated by overexploited Polish workers know something about.

This policy of competitiveness by cost, it's really the reverse of a model who could rally the majority of Europeans, the Rhine Capitalism Model- it’s the opposite of what made the reputation of your industry. You also had to cheat, and as you don't do things by halves, it gives Volkswagen. Focusing on competitiveness by cost instead of innovation, you  are now scandalized to see the Chinese taking the jewels of your industry, your robot manufacturers  and you want to limit their investments. But now, they are the  real industrialists!

And this policy of social crush,  of competitiveness by cost, and especially wage costs, you want to impose it on all over Europe !

And let’s speak of your  bulldozer way, the way you perverted the European Institutions, to impose your interests. Thus, for the catastrophic "liberalization" of the electricity market, while EDF was exploding, you managed to sell the idea that there was no monopoly in Germany, since there was a public distributor by Länder. Bravo! And it's just a small example.

No, that cannot and will not last for long !  It's five to midnight, five years before the explosion of the Euro and the European Community. You really have to  change, quickly and deeply. To change of Merkel and of policy

Good  election year !