MEP Gyöngyösi: The stakes of the German EU presidency is Europe’s future

Having brought the existing economic problems to the surface, the Covid-19 pandemic increased the North-South tension within the European Union (more specifically the Eurozone), which had been ill-prepared for the introduction of the common currency, especially in terms of the Maastricht convergence criteria. If the southern Member States, which already have significant debts and budget deficits, can only get the resources needed for their economic recovery as a loan repayable within a few years, they may suffer enormously in the long run even if the conditions of the loan are highly beneficial due to the 27 Member States acting as joint guarantors. What the example of Greece taught all of us is that excessive indebtedness leads to societal collapse in the Eurozone, as a result of the austerity measures jointly enforced by the local and the EU elites. On the other hand, the northern countries that made a virtue of frugality are clearly opposed to the idea of distributing economic resources in the form of funding, as they already have a good reason to assume that their own taxpaying citizens will have to cover the costs of the loans under the aegis of European solidarity.

As a committed supporter of a European community built upon Schumanian solidarity, I am convinced that the introduction of the Eurobonds would have been the only way for the Union to mutualize the debts and neutralize the effects of the crisis that hits each Member State, just like the USA can locally dampen the negative financial impacts of the crisis in each state by issuing the so-called “T-bill” at the federal level.

However, the idea of the Eurobonds was rejected by the April meeting of the highly influential Eurogroup that has no political legitimacy of any kind, by the way. The only remaining option is that Ms Merkel might find the mutually acceptable balance between distributing the resources as loans vs. funds.

The other equally big challenge for the German presidency is to enforce the fundamental rule of law criteria in the budget negotiations as certain national governments are busy dismantling the rule of law while the European political elite and the public are focused on economic crisis management.

Furthermore, the leaders of said national governments actually use the EU taxpayers’ money to solidify their regime and eliminate democracy.

Consequently, several Member States have rightfully demanded to include the rule of law criteria in the budget act, allowing the EU, as a last resort, to withhold EU funds from such countries.

EU politicians have a substantial experience in giving half-hearted solutions to serious conflicts of interest.

The question is whether Angela Merkel is willing to blemish her political legacy with a compromise that is fatal for Europe’s future.

We’ll soon know the answer.

Source: gyongyosimarton.com