Posted by: tnowotny | January 7, 2014

Progressive economist paint a bleak picture of Europe’s economic and political future

Since 30 years or so, leftist Austrian economist gather at a new Years Seminar ( since several years in a spa in “Bad Leonfelden”). The Event is convened by staff members in the AK ( the Austrian Chamber of Labour ).

Here the somber conclusions:

The economic crisis – now in ist 6th year – has been caused by more than just the burst of an asset bubble. The main cause is a mis-  match  between the financial and the “real” sector of the economy; with the financial part of the economy draining resources from the “real” economy.

The  policies of  austerity imposed by Germany upon EU Europe aggravate the problem and threaten to result in  the downward spiral of a deflationary crisis. With unemployment rates high, and youth unemployment over 40 % at instances, democrarcy might become endangered.

Instead of being an active player in the world,  and this in a way comensurate with ist economic weight, the European Union  has become  the passive object of forces beyond ist control.

With the institutional set – up and the real role of EU bodies changing, and with the ascendancy of the European Council in particular, a disintergrative process of  re – natiuonalization has set in.

That this occurs 100 year after the European suicide in WW I  should give us pause. Are we about to repeat history?

Unfortunately, space fligth is still centuries  away and other habitable plantes are thus not available


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