Angela the Great Misunderstood

I don’t know…to me what Merkel says makes a lot of sense. Is it so hard to understand that in its selfish dreams Germany also needs demand and growth in the Rest of Europe in order to be able to power ahead with its exports, and not a weaker Europe? And that a growth fuelled by printing banknotes or bailing out ships threading water by writing white cheques would be a catastrophe, especially for the weakest economies?

Budget discipline means collecting taxes from those who should pay them, spending on the right projects with have something similar to a ROI and not idiot infrastructure like the Ponte sullo Stretto or decorative kerbs in Spain, supporting the right kind of welfare: the one that enables workers in declining industries to acquire new skills, not nepotist public (or private) low productivity sector jobs. And the unions’ objective should be to negotiate good terms without putting the country on its knees on one side and becoming themselves a protected kast on the other side?

But everybody knows that the nations’ daddies are those who promise gifts, play football and masquerade as Santa. And good moms are those who enforce math homework, room cleaning and spinach eating. There are still gender stereotypes in Europe, and women are the ones which make things work in 80% of cases. More balanced roles would be preferable, but the math exams are tomorrow, the vitamine count is low, kids are panicking and distracted, so someone’s got to keep the pieces together. You’ll get the ice cream, but first eat your greens.

More on Davos here.

Davos-Klosters, Switzerland, 25 January 2012– Europe needs to move forward with structural political reforms if it is to resolve its sovereign debt crisis and put to rest doubts about its unity and viability, German Chancellor Angela Merkel said in an address to participants in the opening plenary session of the World Economic Forum’s 42nd Annual Meeting. At the core of the crisis are weaknesses in the competitiveness of many European countries, she remarked, noting that deficits have accrued over the years. “There is a clear lack of political structures and underpinnings to make this work,” Merkel acknowledged. “We are not going to become faint of heart. But we will not be able to wave a magic wand to address this. Yet at some point in time we have to do something about these weaknesses.” Concluded the German leader: “The question is: Do we dare to have more ‘Europe’? In the year 2012, yes, we do dare.”

In her speech, Merkel called for structural reforms that would allow for genuine labour mobility in Europe so that people can move to where jobs are and be able to take their pension rights and insurance with them. She said that, while Germany strongly supports the single European currency, it is not prepared to make any guarantees. “It is not that we don’t wish to show solidarity and have binding commitments. But what we don’t want is to promise something that we can’t fulfil.” Merkel added that she would like to see the G20 pursue the agenda for growth and employment set out by Mexico, the chair this year. G20 countries will also need to work on financial market regulation and securing free trade against increasing signs of protectionism, she said.

Prior to Merkel’s speech, Eveline Widmer-Schlumpf, the President of the Swiss Confederation and Federal Councillor of the Federal Department of Finance of the Swiss Confederation, welcomed participants. She stressed that countries have to address the long-term challenges of chronic fiscal imbalances and climate change. “Both of these issues will affect future generations,” Widmer-Schlumpf declared. “We must not burden the young with the problems that we have created.”

With record participation of over 2,600 leaders from government, academia, business and civil society, the theme of this year’s Annual Meeting is The Great Transformation: Shaping New Models. “We have a vision gap in the world,” Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said in his opening remarks. “My wish is threefold – that we build by searching for constructive new solutions and models, that we bond by looking for long-term vision, and that we bind by creating the necessary underpinning framework of shared values.”

Source: WEF, CNN and FT

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