In the normal run of how European affairs get sorted out, one can listen to lots of beuatiful delarations being made about European values and the importance of a European vision that keeps European unity at the forefront of all initiatives.
Among those who produce them, frequently are to be found the leaders of France and Germany. In reality however, the same people are quickest and most vocal when the need arises, to leave no stone unturned to promote their country’s national interests when these clash with the attainment of European targets.
France has always set the creation of the eurozone as the anchor of European unity. But it finds itself in the most flagrant breach of the eurozone rule that limits increases in the national debt. Actually, the French national debt is among the eurozone’s highest and is still rising.
The production of cars is a vital German interest. Although an agreement was reached by all member states about when diesel cars were to be totally phased out, the German government abruptly pulled out of the agreement till new demands that it made for this sector were met.
***
FINANCIAL TURMOIL
Till not so long ago, the European Central Bank was insisting on the need to get inflation to rise at least to 2 per cent on an annual basis, for if not, European economies risked long term stagnation.
Today price rises seem to have swept out of all control and the Bank is striving to discover how to damp inflation down, not stoke it. Given the measures it can deploy, the Bank should be increasing interest on loans and advances, in order to get enterprises and consumers to spend less and thus weaken prices.
High interest rates however have the effect of cutting down the capital value of the bonds and debentures carried by banks. If they were to sell these debt insturments, they would be realising (much) less funds than they paid for them. When this happens, the propensity for those who have placed their funds with the banks is to seek to withdraw them. Banks (some of them) might find they do not have enough “liquid” funds to cope with the demand for them to release the monies they hold.
***
RELIGION
I disagree both with those who want religion to enjoy a dominant role in our society, and with the others who wish to exclude it from all socially influential roles. The debates (if one can call them that) about aboortion and less so euthanasia, demonstrate how values generated by a religious ethos still constitute the basis for the political beliefs of many people.
The truth is that though we declare the principles that guide state action are secular, the influence of religion among many strata of our society is still great although it has been declining steadily from the highs of the past.
It is curious though how there is little discussion about what should be the position of religion (and the institutions that run it) within the country, which has also meanwhile been shifting to no less than a multicultural mode.