Jeroen Dijsselbloem, former President of the Eurogroup and former Minister of Finance, was allowed to join the Netherlands in the TV program Buitenhof just put it at ease. Because tipping billions to Southern Europe is very well possible, as long as reforms are required! Yes dude, because that went so well last time!
Euro or corona bonds have been wiped off the table several times. In fact, this is always due to the observation that Northern European countries must assist and guarantee the southern European countries. We do the latter “all together”.
But France, Italy, Spain and Portugal have several times hinted that they really just want a lot of money right away, and don’t want to be checked on how they spend the money. That just has to be done “nice solidarity” on good faith. Otherwise, according to France, you are not in solidarity and according to Italy you are on the wrong side of history. Well, I want to transfer my money quickly though!
The southern European countries know quite well to deal with this situation. Because they continue to respond to moral sentiment and try to exert pressure in this way. Somewhat understandable, because that is where serious blows will soon fall.
The European Union is only too happy to accept this, because it allows them to demonstrate their relevance. They went from support for a package of 1.5 to 2 trillion euros, to support for a package of, now, only 500 billion euros. Weird or not?
And it opens the doors to further centralize power if those loans are provided. Because the European market must then guarantee these loans, which means that any market risk could be “mitigated” by the EU with far-reaching measures: crisis in a sector? That can mean that Italy and Spain will get into trouble! Then investors may no longer trust our market and will demand higher interest rates! To prevent this, the EU will send a signal by introducing a policy that should reassure investors. And that policy naturally applies to the entire EU sector, so more rules apply to Dutch and German companies (in that sector), which will almost always be disappointing. Do not agree with? Unfortunately, it is “European interest”! Nothing to do about it.
And who thinks that such crises will not arise, they really have not understood. The EU is counting on it. You do not just pull southern Europe out of the doldrums and they will not all spend the money well. Rather to new hotels because of the large tourist sector, for which they have no replacement and for which many other sectors are (indirectly) dependent. But Dijsselbloem thinks that what demands reforms will be sufficient. But after the money has been transferred, what guarantee is there that these reforms will actually be implemented? What if they don’t do it? Then I think you are already far too involved. It sounds more and more like a conspiracy for that matter.
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