Why is austerity happening in Europe?

[Puzzledtraveller]

Sound off.

[MrScorpio]

1. It's what conservative governments do

There's been a rash of them lately before the most recent elections.

The people are realizing that conservatism is bullshit.

[thelordofhell]

2. Because the Euro was a bad idea

They thought it would give the European nations a lot more currency power for the world markets. Instead, it concentrated that power to a few world banks instead, giving those banks the power to cripple nations.

[leveymg]

3. Why is austerity happening in Europe? Because, that's where the money is.

Last edited Wed May 23, 2012, 04:33 PM - Edit history (1)

[Quantess]

19. It really is as simple as that.

We have the foxes in charge of the henhouse, in other words.

[Fumesucker]

4. The top .01% are greedy beyond all measure

[Nye Bevan]

5. Greece wanted the benefits of being in the Euro, like lower interest rates.

Fiscally, they didn't really qualify, but with the aid of some creative bankers they were able to cook the books and join up. Countries like Germany and France desperately wanted the Euro because they thought it would prevent another world war from ever happening, so kind of turned a blind eye to this chicanery.

Greece then took full advantage of Euro membership, running up debt at favorable interest rates. However, there is a culture of tax avoidance in Greece, from the very top to the very bottom (Greeks seem to respect income tax in the same way as most Americans respect "use tax&quot .

So now Greece's debt is so high that nobody wants to lend it money anymore. In the old (pre-Euro) days, no problem, just roll the printing presses, devalue the Drachma, and inflate away the debt. But Greece can no longer print its own money. So Germany offered to lend Greece the money it needs to keep going, provided that they got their fiscal house in order (i.e. austerity).

And the situation now is that the Greeks want to stay in the Euro, want to keep borrowing money from Germany, but don't want the austerity.

[leveymg]

6. So, Greece should do as Germany has done several times.

Invade Germany.

[Zanzoobar]

14. Well boiled

Down, that is.

[appleannie1]

7. Conservatives are a global thing. They want to take over the globe, not just the US.

[cthulu2016]

8. To opportunistically roll back 50 years of Democratic Socialist gains

There's obviously no rational economic reason for it.

[warrior1]

9. the people

will throw them out of office.

[malthaussen]

10. Because the love of money is the root of all evil.

The rich want to stop paying taxes, and they want it now. To make that work, you have to gut all social programs.

-- Mal

[JustAnotherGen]

11. I'm too biased

My inlaws live in a tiny town on the side of a mountain in Southern Italy called Acri. My mother in law is a lung cancer survivor. My father in law is 78, a stroke survivor, and recently diagnosed with Alzheimers.

They are shutting down the local hospital. You don't care why it is happening when you realize your mother in law, who doesn't drive, will have to find a way DOWN the winding twisty roads of the mountain to get your father in law to a hospital.

It's very real - austerity. . . It's a downgrade to the quality of life for those people living in these countries.

My husband and I are a bit whacky in our conspiracy theory little minds - but we watch what is happening in Ohio and Wisconsin and PA possibly where we live (NJ) - and we think FIGHT! FIGHT! FIGHT!

His family experience (sister in Genoa, Sister in Firenze, older brother in same town as his parents) is why we support Occupy. It's why we brought donuts and pizza to the protestors. It's why we support the recall of Walker.

We say this - because we *think* it's Corporations trying to find the most effective way to enslave people . . . in Europe they are trying austerity. In America they are STARTING with an attempt to destroy labor . . . since Trickle Down economics has only worked part way.

[Puzzledtraveller]

12. Thank you

What made me ask the question is becauseI am beginning to question the level of complicity by governments. When France elected Hollande I wondered what that would mean for Frances economic woes. Does that mean austerity wont moved forward? I doubt it. It is coming, as you say, there are reasons not evident for all of this.

[pampango]

13. An EU summit on the euro starts today. Looks like it will be Hollande vs. Merkel on austerity.

"Hollande’s election victory has significantly changed the terms of the debate in Europe, with his call for greater emphasis on growth rather than debt-cutting now a rallying cry for other leaders.

That has set up a showdown with German Chancellor Angela Merkel, who supports growth but whose primary objective is budget austerity and structural reform.

At his first EU summit, Hollande has chosen to make a stand on euro bonds – the idea of mutualising euro zone debt – despite consistent German opposition to an idea that has been hotly debated for more than two years.

He will have support from Italian Prime Minister Mario Monti and European Commission President Jose Manuel Barroso, among others. But Merkel shows no sign of dropping her objections to the proposal, which she has said can only be discussed once there is much closer fiscal union in Europe."

The summit "is intended to promote ideas on jobs and growth ahead of another meeting at the end of June, but it is clear the debate will be intense, not just over euro bonds but over how to rescue European banks and whether to give more time to struggling euro zone countries to meet their budget deficit goals."

http://www.euronews.com/newswires/1526944-exclusive-eurozone-tells-members-to-make-contingencies-for-grexit/

Hollande is obviously less committed to austerity than Sarkozy was and Merkel is. How will that play out? My brain tells me that German austerity will continue to be the rule unless other countries join France in pushing hard for more jobs and growth. My heart hopes Hollande is successful against Merkel.

[Edim]

15. It's rotten.

Bureaucracy, technocracy, corruption, incompetence, opacity, distractions, hypocrisy, greed... It's rotten.

[Spider Jerusalem]

16. Because of the folly of trying to impose German fiscal discipline on Greece and Italy

the Euro is more or less the Deutschmark renamed, the EU fiscal rules are more or less those of the pre-single-currency Bundesbank. It clearly isn't workable to establish monetary union without fiscal union, nor to expect fiscal union to be possible without political union. The differences in regional European economies made the Euro project highly dicey from the outset; the lack of integration where it was really needed doomed it, and now the ECB and Germany, principally, are trying to salvage the Euro without having to finance fiscal transfers from solvent countries like Germany to insolvent and potentially insolvent ones like Greece, Italy, Spain, etc. Short version: Austerity is happening in Europe because the German chancellor can't sell the alternative to her country.

[librechik]

17. the big banks own the gears of govt and won't let go

then they applied usury and other pressure. Result: Govts feel they owe more to the thieving pirate banks than to their own people.

Iceland escaped, somehow. The rest should follow that lead (nationalize the banks, dissolve the government, write off the debt, return to normal)

[HiPointDem]

22. i think iceland was allowed to escape, because it's tiny (like half a million people) & far from

europe.

not sure how realistic it was to sweat 500K people for that debt in the first place.

[jwirr]

18. Not an economist but I think they have been following the Chicago Boys policies just like we did.

Got what we deserve for placing greed at the top of the list.

[YellowRubberDuckie]

20. Because Merkel wants Europe to suck just as much as the US...

...where she can get rich when she gets out of office by shilling for some company or another.

[trumad]

21. For the same reason the Repubs are trying to do it here.

They want to drown the Gov and Unions in a bathtub.