Nobody is mentioning the word. Yet, those who emphasize the need for measures that should be taken for Europe to overcome the enormous challenges that it is facing in securing energy supplies alongside the strong impact of inflation, know that in one way or another, they are also proposing austerity.

The memory is still fresh of the social impact resulting from the austerity that was deployed between 2008 and 2012 in order to address the financial crisis of those years. Moreover, serious doubts still prevail as to whether that austerity was a successful economic and financial strategy. It has been strongly argued that it actually triggered problems as pernicious perhaps as those it sought to resolve.

Simply, the pain it caused was not experienced as a huge earthquake but as a lowbeat corrosion of gainful activity. One consequence was that weak economic growth persisted for long years.

It’s a good thing that the effects and lessons of austerity are not forgotten. Nor should one ignore the point that solutions for today’s problems cannot just be sweet.  

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CONSERVATIVE ELECTION

The campaign launched among the members of the British Conservative Party to elect their new leader gave rise to much hectic activity that swept across the party’s organization. Participation was quite high in the meetings and debates that were held.

In modern political parties, this has become almost the only form of effective participation which members feel is open to them. Social media as a means by whch to communicate with the grass roots, the power that has become concentrated in the central organs of parties, and the increase of popular attractions and interests (among which travel), have stifled – at times almost completely – the regular political activism of many citizens.

Somebody in my position cannot but feel pleased, as well as nostalgic, when he sees this revival of “old style” activism at the service of partisan politics, even though it was being deployed in the election of a conservative leader.

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EXCESS PROFITS

Pressures have continued to build up for new taxes to be charged on “excess” profits being made in the energy sector (but not only there) in these days of looming crisis. There was an interesting give and take in the House of Commons between the new British Prime Minister Truss and the Leader of the Opposition Starmer during which Truss insisted she was against all taxes on “windfall” profits.

The same debate has arisen in France. President Macron sidestepped the controversy by deflecting it towards Brussels. A decision had best be taken at European level, he said.

On the issue, the way by which political positions are adopted is determined by whether parties in government or out of it come from the left or the right. In Macron’s party, the left wing half wanted a new tax on excess profits, while the right wing half was extremely sceptical. In the end, Macron himself signalled his agreement with some tax on profits that the crisis helped to make exceptionally good.

Personally, I would like to learn about whether in Malta “excessive” profits are now being made for the same reason; and if yes, why and in which sectors.