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It is very urgent to build a real Europe
January 13, 2015 , Michel Gabrysiak - Financial Markets


     Hans Werner Sinn  is German, economist, advisor to the German government, professor, president of one of the best economic institutes in Europe (IFO) and he has an opinion.

     Writing in the London Guardian, he explains that the new 315 billion euro mega-investment project promoted by Mr Juncker, the new president of the European Commission, is full of air, or to say it with different words, full of debt. The start up capital of those 315 billion is just 5 billion. Those 5 are not even real capital but re-evaluation of existing European investment banks assets. On top of that, Mr Juncker and his team have built a skyscraper of guarantees, loans, sub-loans, loans again from the EU, from member countries or from everybody else who is ready to guarantee. 

This is not real money. The German institute found that 2000 potential projects would cost 1.3 trillion euro. This is a total aberration. It shows, at the beginning of this new year, how sick Europe is. Not only because it has no growth, not only because it is engaged in a Japanese style austerity and deflation, but, essentially, because it does not exist. Its 500 million inhabitants are subdivided in, now, 29 countries and hundreds of provinces. Democracy means that each of those entities, geographical and human, has elected officials. Those want to show that they are different. Different from the neighbour, different from the other party. Europe is a cacophony.

     I have a wish for 2015. The creation of the United States of Europe. One parliament, one government to rule the Union, with powers given again to elected officials at that level. Let the local politicians rule their provinces and stop meddling in Europe affairs which should be controlled by a different breed of politicians: European elected by the entire federation. 

     If we do not do that, the citizen who vote will go for right or left adventurers in the UK, in Germany, in Greece, in Italy, in France. Europe has become a sort of new conference board with meetings galore, with concessions, half truths, half measures and an absolutely pitiful result which shows when you look at the almost zero growth in the EU, compared to the 5% growth in the USA. It shows when you look at decisions and conferences between the USA and China, with Europe sitting on the 30 chairs necessary to accommodate the elected officials.


     The anti-European parties are able this year to derail the European convoy. That is very bad news to start the year. 



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