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In Freudian psychoanalysis, neurotic behavior is a manifestation of depression. In the pursuit of the EU and the rule of law, politics is what is being oppressed. That’s the reason a controversy that has erupted again economically the rules of the bloc will be difficult.
Modern economic policy it does not satisfy anyone. Countries with an economic crisis see its legislation as too strict to promote economic growth that could hurt government finances. More and more countries are seeing more debt in their poorer neighbors and think it was not compelling enough. These laws are difficult to communicate with voters, disrupting their democratic acceptance.
The slightest mistake everyone has made – especially the German finance minister and possibly the next Chancellor, Olaf Scholz – is that the laws did not prevent governments from saving their assets at risk during the Covid closure. It could be a dictionary definition of cursing and a few compliments.
Thus, major changes have been delayed, but few have the high hopes for a new state of affairs. Hence the test of looking at the edge. The problem, however, is that economic conditions have changed in at least two ways.
First, the (correct) response to the plague caused a public jump loans and all household expenses. Second, EU requirements call for increased funding to shift to a zero-emissions, well-documented economy, and restoring development opportunities.
Current trends do not necessarily reflect these changes. Under current laws, governments that owe GDP above 60 percent are required to cut that budget by 20 percent a year. The combination of these combinations is a way to reduce size, which can defeat its purpose.
The increase in the need for additional public spending is not matched by an overdose, unless the cost is significantly lower or another tax increase. This, in turn, could undermine growth and undermine political support for green and digital transformation.
Without reform, we will never return to a place where rules are binding. Countries with high debt cannot reduce their debt to a reasonable level. Governments will borrow to spend money so that they do not lag behind in economic change, deficit limits will be broken. Economic law will be a factor in political accounting.
Such perceptions are very common. As a result there are a number of positive technical considerations, including those from organizations whose involvement in public finance is unlikely.
European Fiscal Board he encourages Ways to reduce debt in some countries, taking into account the root causes of foreign countries. Klaus Regling, executive director of the European Stability Mechanism, he thinks a 60 per cent increase in the level of government debt in GDP is “no longer relevant” and should be raised. Bruegel thinking tank wants “green gold rule” how government spending expenditures can be eliminated from financial crisis.
All of this can be helpful in changing. But adoption does not depend on their value. A major problem with EU monetary policy is that it introduces political solutions.
In multilateral groups with several branches of government, it is an attempt to try to end politics altogether. But it is useless. Like Freud’s oppressive ideology, oppressive politics does not go away, but it does lead to some inefficiency – including the ability of the law to carry out its mission to the benefit of all.
The obstacle to good economic governance in the EU is not bad laws but bad politics. In particular, the lack of political political ownership in the member states – though covenant “seeing their financial policies as a matter of common concern” – breeds mistrust. Countries with no economic power do not believe in the intentions of the powerful, who also doubt the power of the weak to control their economies.
However, the new politics of post-epidemic recovery recovery are signs of optimism. Other than that Hungary and Poland, did not arouse the old-fashioned skepticism about the weak and the powerful. On the contrary. It is an early days, but if this seems to be the case, it will prove that northern and southern Europe can depend on each other to achieve common economic goals. This makes a bigger difference to financial management than any other technical change.
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