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European Union’s economic impact collapses

11 June 2013 / 21:06:22  GRReporter
4966 reads

Victoria Mindova

''Europe is losing its economic power in the long run and that is why there is no place for nationalism in the countries of the European Union''. This was the message of Jean-Claude Juncker, Prime Minister of Luxembourg and Eurogroup’s former chairman, who delivered in Athens a speech entitled, "The euro: assessment and prospects", at the invitation of the Hellenic Foundation for European and Foreign Policy.

"Europe is losing momentum. The GDP is declining in the long run. We are dramatically losing our economic impact," said the politician to the Greek audience and presented some data. In the early 20th century, the population of Europe represented 20% of the total population of the earth. At the beginning of this century, it was 11% and in 2050, we will be only 7% of the population of the planet. He states in light of these facts that joint work and mutual assistance are the solutions to the economic crisis that exists in Europe nowadays.

"We need less nationalism, less dogmatism and more integration. We will be unable to cope if we continue to defend our narrow national interests instead of seeking a solution to the problems in the perspective of the European Union." With these words, he indirectly focuses not only on the nationalist movements that have been rising in Europe but also on the strict position of Germany, which, for a long time,  was refusing to make concessions as regards the rescue programme to Greece.

Eurogroup’s former chairman is clear that the European Union is losing a significant advantage not only in demographic terms but also in relation to production and competitiveness. In his opinion, European powers such as France and Germany do not pose a serious threat to countries like China, India and Russia but they have greater influence as factors in the European Union. Juncker insists that any problems that may arise within the Union should be decided on that basis and by mutual agreement between the 27 union members. Individual countries are much more vulnerable to outside influences and interests.

In his speech, Juncker stresses that the economic aspect of united Europe is not the only one that now must make us think about what we want the continent to be. He recalls that the idea of ​​the European Union emerged after two devastating world wars. The idea of ​​unification has been established as a guarantee that the countries of Europe will never again turn against each other.

"Let's not forget that at any given time there are around 60 military conflicts around the world," said Juncker. He does not fail to note that in times of crisis, a new wave of nationalism and neo-Nazism has appeared in Europe, which must be controlled. "After 30 years, people who do not remember the war and our fathers’ desire for unity and peace will govern us," Juncker states, stressing that today's generation understand much better the difference between war and peace in order for it not to repeat the mistakes of the past.

"If extreme nationalist forces find a new charismatic leader, they will be able to take the continent to the brink of disaster again," says the politician and urges the citizens of Europe to try to look beyond the issues of this day."If extreme nationalist forces find a new charismatic leader, they will be able to take the continent to the brink of disaster again," says the politician and urges the citizens of Europe to try to look beyond the issues of this day. The closer union between the Member States, the legislation and implementation of common policies will ensure Europe’s safer future.

"I do not mean assimilation or that we should become United States of Europe. The countries and citizens must preserve their national characteristics but extremists should not be allowed to dominate," said the politician.

"I still feel uncomfortable when I think about the insulting words that some European leaders have said about Greece in recent years," Juncker states, turning to the issue of the Greek crisis. He explains that this particular nationalist bigotry is the reason for the negative reaction in Europe to the bailout programme to Greece.

"If you ask whether Western Europe has lost due to the Greek crisis, the answer is NO, it has not lost anything. Neither Germany nor Luxembourg, nor anybody else has lost," he says and explains that the issue of the assistance is a matter of principle. Juncker said that he had experienced great difficulty in persuading countries such as Slovenia, Malta and Portugal that the funds for the Greek rescue programme were necessary. These are countries where the average wage was lower than the minimum wage in Greece.

On the other hand, he admits that it took the Europeans themselves and the leaders in Brussels an extremely long time to understand what is happening in Greece and to find the right formula for the country. "We were wrong and we were late," Juncker admits as regards the first recovery programme, which was drawn up in 2010, adding with humour, "This has always been a problem for Europeans – they never fully understand other Europeans from other countries."

He stresses that within three years, the country has made great efforts to carry out reforms and achieved significant success - the deficit is almost zero; Greece will report a primary budget surplus for the first time, competitiveness has improved and interest rates on external loans have decreased significantly.

Tags: EconomyMarketsJunckerAthensVisit
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