by system failure
The vast majority of the
mainstream media in Greece
and abroad, tried to present the decisions of the recent European summit as a
victory of the countries of the periphery – with Italy
and Spain
leading – against countries of the “hard core” in the eurozone. For this of
course, helped also the “opium of the people”, football, where Italy’s victory over Germany in the semifinal of the
European Championship, with the goals of Mario Balotelli, coincided –
incidentally(?) – with the “victory” of the other Mario, Monti, against tough
Mrs. Merkel. Plenty of symbolism and coincidences for mass consumption.
But the basic agreement, which
was advertised extensively, and refers to the direct recapitalization of the
banks by the European support mechanisms, is nothing but another victory of the
bankers against European people who suffer from the extensive and continuous
cuts in pensions and wages. That is, if for example the bankrupt banks are
large enough to be characterized as TBTF (Too Big to Fail), they will continue
to be bailed out through the “back door”, getting rid of any “disturbing” state
supervision.
Besides that, this decision
opens the door for privatization of the banks which are under state control. On
the grounds that the state would get rid of “potential” failed banks so that in
case of bankruptcy will not have the responsibility of the recapitalization and therefore adding to the debt and deficit, there is a strong possibility to
see a large wave of privatizations of the banks that remained under state
control.
Therefore, we could say that
this is just a strategic win of the big European bankers which, during the
current crisis, they found themselves in a difficult position, under the
disturbing state intervention and the governments “threatening” to nationalize
the largest financial institutions.The statements of the biggest
Greek bankers were characteristic, accepting the decision rather with a relief,
as they saw that the “risk” of the nationalization of their banks has been
removed.
Therefore, the true picture is
that the bankrupt TBTF banks will continue to be funded with taxpayers’ money
at a European level. So, what changes in effect, is that the European taxpayers
will continue to bailout banks in a European level, rather than the taxpayers
of each country bailing out separately the domestic banks. Also at a European
level, this will help larger banks to eliminate weaker competitors and banks
that will not have the appropriate access to the funding mechanisms (something
that happened in the US during the crisis of 1929 and the crisis of 2008), and
to establish definitive sovereignty over European territory, forcing the EU to
supply them with more and more liquidity, to prevent their collapse and the
collapse of the - more than ever – unified and interdependent European economy.
Therefore, it is not strange,
that the mainstream media “forgot” the fact that Mario Monti is primarily a
technocrat banker, highlighting his nationality against Mrs. Merkel’s, and
pointing this way to the direction of the win of the “poor” European south
against the “rich” European north, and burying the core and the true aspect of
the decisions.
However, what the European
“leaders” truly forgot, is actually the European people, because once again,
they didn’t seem to have any intention to take any substantial decision to
relief the suffering people and enhance the social state. In contrast, they have
chosen to facilitate bankers and secure more liquidity for them at the expense
of the European taxpayers, just as required by the neoliberal conception for
the economy function.
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