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Another view on beating the crisis

Karl Albrecht Schachtschneider The professor of law, Karl Albrecht Schachtschneider is known to weigh his words with care. He is not an extremist. He got a decision from the German Constitutional Court against the Lisbon Agreement. Here is a summary of what he said recently.

Current Conflicts and the Future
"A few hours after the German Constitutional Court's decision on the rescue fund, the EU already speaks of another, four times larger. In Greece, again, more money is needed, a further €20 Billion. In the midst of the worst recession in the history of the country, it was paralyzed by a general strike. The officials of the municipalities did not get their wages, there is plenty of rubbish in the streets, schools are closed, no buses or trams were running.

Further west, Spain is further ransomed after a bank rescue of €100 billion. The recession there is as dramatic as in Portugal. Where do the billions go? In southern Europe millions of people in Athens, Madrid and Lisbon protest in the streets against their governments. They throw stones and bottles, police use water-cannons and gas. Is this a civil war?

This is the result of rescue practices. Governments do not convince us with their beautiful words nor with what is being done in Brussels and  Berlin to resolve the crisis. Will we have a socio-economic disaster? Are EU politicians right? 

In Austria there are expectations that there will be a referendum on leaving the euro. Prosecutors were frustrated in 2011 by the Interior Ministry, due to a formal failure. A new campaign comes in early 2013! Austria leaving the euro will arouse many voices in Germany.

According to a study by Morgan Stanley, the UK budget deficit in 2013 will be 7.8% of GDP. Greece’s will reach 6.3% and Spain’s 6%. In other words, Europe is getting worse. Also in the Netherlands, resilient so far, the difficulties grow. Property prices fell in August by 8%. Thus, the Dutch banks get into trouble. The number of bad loans grows.

Greece, Spain and Portugal are under the Troika, the UK and the  Netherlands are waiting for a savior; the British, luckily, do not have the euro. Despite these disasters, the "no alternative" of Frau Merkel continues. Their option, of a "at any price" euro, is bad. The output of these countries, a well-planned restructuring of the economies, would be best. Saving the euro today is very expensive, and fosters discord; it may lead to civil war.

There are examples of countries that after a depreciation, returned to normality. Why would it be different in southern Europe? Do EU leaders fear the domino effect? Politicians are sucking the wealth of the people for the banks. It's time to intervene. The people of Europe have the power to get rid of the EU dictatorship!"

Euro-M or Innovative Projects?
I, Jack, do not fully share the opinion of this gentleman, but I must bring up the testimony of a person of high profile among Germans, so they do not continue to think that Frau Merkel has a strong majority.

I read Swedish and German, I read newspapers from other countries. Finland, Austria and Belgium have strong movements for the coming of the Euro-M. 

These people are seeing the advantages that Sweden, Poland and the Czech Republic have today, by not being in the euro. There is no mention of the four Mediterranean countries going back to original currencies, but this would return them to the competitiveness needed to export more and import less.

In Finland, Denmark and Austria there is talk that if by the end of 2013 the EU doesn’t change course, and leave the EU, Norway and Switzerland may stay with special treatment. The UK has already made its intentions clear. Little is said here by the opposition from smaller countries, unhappy with the taxes of Frau Merkel after the Lisbon Agreement, which gave strength to the EU constitution. There, many hoped that the rescue would come in the form of an Innovative Projects Fund, distributed by the European Investment Bank to finance SMEs, innovations that large lobbies crush, because it is these that create jobs.

The European federalists believe they can unify cultures for millennia, unlike the US. The greed is for power by some politicians wanting to ignore these differences and to extend the list of member countries. It took 10 years for the 6 countries of the Community of Coal and Steel to expand to the CCE. Another 10 years to absorb 3 more countries, over 8 years for Portugal, Greece and Spain to join; another 10 years for Austria, Sweden, and Finland. Groups of countries were similar and yet the mutual adaptation took almost 9 years. But in one move they let in 3 Baltic micro-countries with disparate industrial structures and some ex-communist central European nations, each group with different cultural, economic and political practices. It could never work!

Details: The Difference Between Success and Failure
In many books I detail projects promoted by associations or states where I worked. The details and tricks to ensure success. For here there is a myth that capital is lacking for entrepreneurs. There is plenty of capital, plenty of  entrepreneurs and ideas. But success depends on 95% perspiration and 5% inspiration, and of a SWOT analysis (Strength, Weakness, Opportunity, Threats.) The business-plan is for the sole purpose of checking whether the candidate can do maths. They often lack a market survey of potential customers and humility for those with limited practice. 


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