A European budgetary corset
(Mood) The "Fiscal Pact" adopted on December 9 by the Member States of the Euro zone, joined by nine other countries of the European Union is unbalanced to say the least. It provides for the inclusion of a golden rule in the Constitution – prohibiting a budget deficit of more than 0,5% of GDP -. It allows the application of automatic sanctions in the event of an excessive deficit (more than 3% of GDP). A measure that could quickly apply to all since today 23 out of 27 states are in excessive deficit.
The European Commission will have a mandate to monitor and evaluate the budgetary projects. It may request a correction to the budget if it considers that the Maastricht criteria are not respected. This "Pact" designed as a new Treaty aims to move towards a " stronger economic union ". But it looks good" light and in view of the current economic crisis.
No stimulus measures, no growth measures, no social measures, no democratic control. Everything is “instrumental”, “institutional”, “intergovernmental”, with a single guideline: reducing deficits. It is not certain that an economy enclosed in a single corset, that of the austerity pact, concluded between a few heads of government, can survive and be understood. In any case, this does not promise us anything good…
