The responsibility for the crisis cannot be attributed to Berlin and Brussels. National governments are accomplices of austerity policies. Meanwhile, the economic crisis is corroding the democratic foundations of member states.
It seems that around two thousand projects have been presented, amounting to 1,300 billions. But, at the origin, the available resources of the plan amount, at best, to 21 billions.
The role of Saudi Arabia, he main OPEC oil exporter, in leading the low price strategy. Lowering the oil price helps the friendly countries, and hits the Saudi competitors.
The most disturbing aspect is the stubborn persistence of policies that have already proven their failure. The Japan's shock move, and the appeal to the ECB.
The officiial forecasts deliver a continually worsening economic framework. Despite the stubborn faith of the European Commission, the Earth isn't at the centre of the universe.
According to the plan designed for Italy by the European Commission, Italy must regain competitiveness with Germany by forcing down wages. A prolonged period of high unemployment is an essential part of this process.
János Kornai makes a fair comparison of both systems - Capitalism as the surplus economy and Central planning as shortage economy - assessing that each has merits and drawbacks. But If shortage were a necessary feature of socialism, a dilemma arises: is China a shortage economy or is it fully capitalist?
