The “European Stability Mechanism” (ESM) As a New Enabling Act

No 18/19 8 May 2012 CurrentCurrent Concerns Concerns «ESM Dossier » Page I The “European Stability Mechanism” (ESM) as a new Enabling Act for the suffocation of European states The “European Freetrade Association” (EFTA) would be the necessary and reasonable alternative by Dr phil. René Roca The “European Freetrade Association” an Coal and Steel Community”, had put And still the OEEC had started with the (EFTA) was founded by 7 Western Eu- the six founding states on the wrong, i.e. will to lead Europe back to the democratic ropean countries including Switzerland supranational, track. Some “High Com- path by the “rule of law”, out of the ruins in 1960. Today the EFTA is left with mission”, endorsed and directed by the left by the second world war. This had only 4 remaining members, namely Ice- USA, had started to claim important ele- only been possible thanks to a foundation land, Norway, Switzerland and Liech- ments of national states’ sovereign rights. based on natural law and the intention to tenstein. In the aftermath of the second Today the EU is a “state union” held to- strengthen social market economy in a de- World War, the European states had in- gether by various treaties. With the Lisbon central, federal society. A global determi- itially aimed for a solid and sustainable treaty the EU elite had recently imposed nation had emanated from this focusation foundation of their economic development a kind of “constitution” on the member of forces to leave all totalitarian ideas in with a big free trade zone built around states, without discussion or voting of the Europe behind once and for all, with the the “Organization for European Eco- affected cirizens, and this treaty is now UN charter and the declaration of human nomic Co-operation” (OEEC). However to be amended by the “European Stabil- rights. the USA spoiled these European efforts. ity Mechanism” (ESM). That will finish Developing this agenda further, the Their view of Europe on their geostrate- off the last remains of financial and budg- EFTA tried to continue the OEEC concept gic chessboard was that of some depend- et sovereignty. Supposedly the EU intends of co-operation and peaceful reconstruc- ent “pawns” with vasal status. With this to solve their crisis that way, but the re- tion. From the beginning it refrained from vision in mind the Frenchman Robert sult is even deeper poverty and misery in being anything else than just an econom- Schumann laid the cornerstone of today’s unheard-of dimensions. The often hailed ically focussed freetrade zone and aimed European Union in parallel to the OEEC “European House”, built on sand from the at getting rid of trade barriers among their and later the EFTA, with US support and start, will be brought down by the ESM Jean Monnet as a background collabora- altogether, since even the last pillars of de- tor. Their very first treaty, the “Europe- mocracy and rule of law will crumble. continued on page II Wouldn’t the EFTA be the better solution? Euro area in 2020 – Prospects for the period after the crisis by Willy Wimmer Seen from a global point of view the pros- France with its centralized structures ly the attempted international influence on pects for the euro and the tensions in the traditionally considers itself an antipode Russian natural resources. euro area represent a “crisis within the to the Anglo-Saxon model of capitalism The significance of the PR China in in- crisis”. The euro crisis is a competition for (“shareholder value”), making it a main- ternational politics increases (for example economic systems and political spheres of stay of the continental European model. in the conflicts with Syria or Iran). China influence that has already been observed On the other hand, the French presiden- observes the rivalry between the systems for some time. The following general con- tial election campaign reveals very differ- in the West in order to control its own ditions are important: ent positions with respect to Germany and capitalism. The most important question Germany’s future political role is un- the euro. Therefore it is still an open ques- is how the cohesion in society can be se- certain; the publicly discussed possi- tion whether the position of Europe, and cured, given the increasingly unequal dis- bilities range from “soft hegemon” to thus the euro, will be supported in future tribution of income. Currently this is only a far-reaching integration into a united by the Paris and Berlin alliance. possible because almost all groups of so- Europe (“Germany, as we know it by In the USA the factional dispute also ciety profit from the strong growth. Any now, will have disappeared within the becomes evident in the presidential cam- growth rate of the GDP below 6.5 or 7% next 20 years”). The question which paign. Traditionally, the Republicans rep- a year would put 16 to 17 million jobs at economic model will prevail – the mere- resent the pure Anglo-Saxon model of risk, with corresponding threats to inter- ly Anglo-Saxon-dominated (“sharehold- capitalism, while Democrats increasingly nal stability. er value”) or the continental European take social elements in consideration and In view of these general conditions, the social market economy – is still to be get closer to Europe on the political level. question whether we will still have the answered. However, in a social market The latter are always confronted with the euro currency in 2020 cannot be answered economy model, the more centralized, accusation of wanting to introduce a kind with certainty. There is a clear continental state-capitalist variant French pattern of European Socialism and compromise European, especially German and French, and the decentralized federal orientation American interests. interest to secure the euro as a brace for of Germany face each other. The averted Russia clearly answered the question a politically and economically united Eu- attempt of taking over municipal water of who should exercise control over their rope. Governments will therefore do eve- utilities by foreign (state) companies is own resources – Russia or the internation- rything possible to overcome the crises in a positive example that social market al markets – in the course of the Khodork- the weak member countries through ap- economy organized in a decentralized ovsky processes: Russia itself. The process propriate aids – almost at any cost. • way will prevail. was intended to push back unequivocal- (Translation Current Concerns) No 18/19 8 May 2012 CurrentCurrent Concerns Concerns «ESM Dossier » Page II The Goldmen In praise of the conspiracy theory: Wolfgang Streeck gets to grips with the capital whisperers by Jens Bisky, Süddeutsche Zeitung What is meant by self-regulating finan- became his successor as Treasury Secre- ingstone.com, informs in detail about the cial markets? Obviously, these are mar- tary. The deregulation they both propelled history of Goldman Sachs.) kets regulated by Goldman Sachs itself, was one of the preconditions of the finan- Conspiracy theories are seen as ungen- the sociologist Wolfgang Streeck said on cial crisis in 2008. In the crisis year Sum- tlemanly. However, there are conspiracies, Monday evening in a brilliant lecture. At mers, formerly president of Harvard Uni- Streeck says. If we want to understand the the Berliner Schaubühne he – the director versity, did not only earn money at a hedge crisis, we have to acknowledge both the of the Max Planck Institute for Social Re- fund but also $ 2.7 million through con- “cumulative presence” of the “Goldmen” search – had a debate with his colleague tracts with JP Morgan Chase, Citigroup, in American politics and meanwhile on a Heinz Bude from the Hamburg Institute Merrill Lynch and other banking compa- global level and the absurd fact that regu- for Social Research on “dual power in nies. Summers was paid $ 135,000 for an larly those who have driven the car against capitalism”. Apart from opinionated at- appearance at Goldman Sachs. What was the wall are called as paramedics. We have titudes and moralism the German crisis he paid for? A wonderful friendship? Or to speak of the experts’ power techniques. debate predominantly summons up ghost was it, Streeck asked, “anticipatory cor- What is their expert knowledge? It terms; Streeck, however, found a form of ruption”, disguised as a consultancy? is based first in mystification by scien- sociologically enlightened crisis narration Larry Summers became director of tification. Economy is almost exclusive- that allows seeing things more clearly, in- the National Economic Council under ly treated mathematically, but if it be- stead of giving up given the complexity of Obama, whose election campaign had comes critical technocrats talk about the the world. been generously supported by Goldman markets like psychotherapists talk about Streeck started by saying that demo- Sachs. Shortly before Treasury Secretary needy children: Then the markets are cratic debtor nations had to serve two mas- Henry Paulson, CEO until 2006 at – right “shy”, “anxious”, tend to panic. Streeck ters, the citizens and the “markets”. How- – Goldman Sachs, had let go bankrupt does not deny the experts’ intelligence, ever, who says what the “markets” want? Lehman Brothers, the largest competitor but their knowledge is often nothing but There are finance technocrats that ensure of the investment bank; however, he saved alleged. The decisive factors are equal- that the creditors do not have to believe in the insurance giant AIG with taxpayers’ ly networks, strategies for placement the states proving to be good debtors and money because billions were at stake there of important people and a willingness everything is done that the next generation eventually – for Goldman Sachs. to systematically sail close to the wind. can pay for what has long been spent.

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