There is a tragic consistency in the German position. From open conflict with the positions of Mario Draghi , to attempt to impose a definite limit to the management of the banks that buy government bonds; by the refusal of Eurobonds to curb immigration, the interposed delays in implementing the insurance of deposits. Principle, the latter which is already part of the European rules. An attitude that threatens to spill over into a destructive crisis for all of Europe.
It is the limit of all those positions that have as their exclusive reference the protection of immediate interests. Who do not have the strength to project itself beyond the situation and look at longer times. But for this more true. A Germany so that points to win his battles, but in the end is bound to lose the war. As it is always the case in a hundred years of history. A curse, but also a logical consequence of a lack of generosity. Of that quality that not only in the lives of individuals, but of states, it makes the difference. It guarantees a future.
Here is the real limit of a blind consistency. Today the European Economic policy is not able to ensure that development which would be indispensable. The reason for this failure is not difficult to spot. There is a clear contradiction between monetary policy and fiscal. The first has as its objective an inflation target of 2 per cent, to fight deflation. The second moves in the opposite direction. The result of these opposing forces produce the inaction and stagnation.
The German response also aims to bring the monetary policy within the framework of orthodoxy, to reconstruct an ancient theoretical unity. Even regressive, in the repetition of the theme of integral austerity. The presumption is that they are only market forces to drive sustainable development. The polemic in defense of savers, penalized by negative interest rates, even if only from a monetary point of view, it is only the most obvious aspect of this philosophy. However, it is partial. To be penalized are not only German investors, but the same happens to the Italians, the French, and so on. But if this occurs, the causes lie precisely in that divorce between monetary policy and fiscal policy, which prevents any possibility of development.
To resolve this contradiction should follow the advice of the IMF. Point to support demand, especially by those countries that can afford it. Germany, therefore, should exercise the role of “locomotive” that the United States has done for years. Deducing from this policy not only charges, but also convenience. The same ones that could be favorable to Germany itself, if it had a minimum of foresight, which is a child of that generosity on lost time.
The German decisions have, however, a different curvature. Aim to defend a current account surplus of the balance of payments which is equivalent to 8 percent of GDP. Who cares if this policy, according to the Treaties, should give rise to an infringement procedure. From this point of view: nothing new under the sun. As in the days of the old Giolitti, the laws are applied to enemies and interpreting for friends. They clamor for tiny Greece, but grace Greater Germany. Which, however, aware of his guilty conscience, trying to throw the ball in the field of Agramante.
And so that the alleged consistency becomes, in effect, an alibi. Mario Draghi attack or pull the ears to countries that do not conform to the financial orthodoxy line means only defending a privileged position objective, confusing the waters with courtly references. A game that should be made clear, going to the essence of the problem. The objective of price stability, which materializes in the inflation target of 2 percent, encoded in the DNA of the ECB, it is still a constraint in EU policy. If Schauble believes that it should be removed and wants to preserve the independence of the ECB has only to propose, in the light of the sun, an amendment of its Statute. And together we will see, then, as the old song by Whittaker, the effect it does.
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