Without a New Start in Europe No Political Union
"What it means if under the given general framework competences are ceded to Brussels' bureaucrats can be seen in Greece: recession to an historical extent, exploding poverty due to cuts in social services, ever increasing debt and an ongoing bank bailout.", comments Sahra Wagenknecht, Deputy Party Chair of DIE LINKE, on the statement of Chancellor Merkel, demanding a political union.
With her statement, Merkel tries to make the unconstitutional fiscal pact tempting for the population. By this, the recession policy á la Merkel would be cast in concrete forever. Merkel on the one hand is right by saying budget consolidation and questions of growth are two sides of the same coin. Yet, budget consolidation by cutback policy leads to recession. Budget consolidation by property levy and a millionaires tax leads to growth. Merkel endangers Europe, by trying to dictate the countries a wrong budget consolidation. This road does not lead to a political union but to a split.
DIE LINKE demands an immediate stop of the cutback policy. The financing of the government budgets in the Eurozone has to be secured by a public European bank, receiving in turn by the European Central Bank credit at reduced rates of interest. This measure would release the financing of the government budget from the dictatorship of the financial markets. National debts have to be reduced by a rigorous haircut and a Europe-wide millionaires tax. Private high street banks have to be socialised and the whole financial sector must be strictly regulated. Germany has to adopt appropriate measures to strengthen the domestic demand.