A “European” agreement has been reached on Thursday to safeguard, at least temporarily, the Euro. President Sarkozy and Chancellor Merkel have imposed to the European banks the renunciation of 50% of their exposure on the Greek debts, they have imposed their recapitalisation and an increase to 9 % of their credit security. These banks have now to find the funds on the public market. Governments should only intervene as a last resort, meaning part renationalisation of defaulting banks as already proposed in certain European countries. To secure the survival of the Euro, an effort has been imposed on every member parliament for the ratification of such a measure. Tke Maltese government has been completely silence since a long time on these issues, focussing more on their complete failure in the implementation of the public transport reform.
Ultimately this reached agreement will directly effect the purchase power of its European constituents. It is evident that to sustain financially the euro crises, banks will seek to recover their losses in reducing their credit exposure and rising their fees: the access to credits will be much more difficult to persons and companies. It is evident that a recession is in sight. Governments will follow suit the banks, they will increase the tax burden on the citizens, it has already started in France and Hungary with the planned increase of Vat, thus affecting everyone’s purchase power.
Today, we are witnessing the complete failure of ruling socialist and conservative governments. They are unable to implement and control a European union worth its people, they have shown a complete mismanagement of the eurozone crises where defaulters are not taken to responsibility, where national audits and controls of budgets, expenditures are non existent, where each national governments seek its own interests. It is absolutely non acceptable that the German and French governments head these negotiations and impose their conclusions on all other members, that ultimately model governments and their population have to pay the bills of defaulters. It is evident that the socialist and conservative governments can not be trusted any more, that a change is needed, a real change, a new Green deal, which is not ruled by national and financial interests, but by human interests.