The American governance system is federal and is based on a fully fledged central government, that is responsible for the running of major sectors of the country. Despite its complexity, the European system is still far from including a central administrative focus with the power to launch initiatives on its own, and to tax federally, as is the case in the US.
A principle that is considered to be central in EU operations relates to subsidiarity. This implies that where programmes can be carried out at local, regional or national level, they should not be allocated to some central authority.
How ironic. For actually, in many of the procedures by which the EU functions measures were – and are still being – introduced that create commitments for national authorities which are much more binding than what prevails in the American federal system. EU member states must conform to a discipline that is non-existent in the member states of the US federation.
The euro zone is most in target. No American state is subject to the same strict rules by which to manage its budget, and certainly not rules tht are as detailed as the ones which the EU insists on.
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WHAT STEWARD SAID
The confusion that exists about the management arrangements of the three government hospitals which are being run by Steward, a private corporation, is palpable. I do not wish to join the polemic over this issue. Like others, I will keep listening to what all the parties involved in the matter have to say.
Still I could not help noting a curious point that emerged from a statement which spokespersons for the Steward company made. They said they joined the project over a very short period of time, at the Malta government’s request, on the understanding that the agreement they were taking over would be drastically amended during further negotiations.
Frankly I have never heard before of a sitaution where a company that enjoys a good reputation, no matter what company it is, would sign up to an agreement of this nature with any government.
In this matter, were all the conventions of good managerial practice forgotten by which a hands-on board would examine well, at its level, what it is going to commit for – and to carry out due diligence exercises? On reflection, the Steward version of how things got done raises huge questions about Steward itself.
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GREEN TAXES
“Green” taxes have become the fashion in Europe for what comes next. More than a fashion though, they add up to a necessary if hard-edged tool by which to shift the use of energy resources towards means and methods that do not generate more climate warming, globally.
Still, the manner by which taxes are designed and implemented has to be sensible and to respect social fundamentals. Not all societies, hardly all territories, are part of the same natural environment or have reached some equivalent level of social development.
Corporations and states, big and small, shall seek to achieve hidden advantages in the ways by which taxes get established. In this, to get decisions skewed in the direction of their own interest, the big players will be at an advantage. The social commitment to keep such manoeuvres under check will have to be reasserted.