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Austerity Plans Bring No Solutions

Posted on 29 November 2010

Doubtless, deficits are extremely bad for society. To balance national budgets and lower debts is often practised by austerity. Austerity (fiscal consolidation strategies) means national´s expenditure and budget restrictions in mainly social areas, by lowering contributions and benefits, and by lower financial flow to public services , development and other important areas. This is often accompanied by tax increase, has most negative impact on poorest populations and generally, does not bring the solution, even worsen the situation.

Green values stands for equality and for standard living conditions, do not forget on poorest population, support sustainable development programmes, as also support access to education and other public services for everyone, because these are basic human rights and it is the only way to provide both people´s satisfaction and balanced and qualitative economic growth.

Austerity plans are currently scoped to be taken in many countries: Czech republic, German, Italy, Ireland, Japan, Romania, Spain, Portugal, U.K. Because of this we can observe also higher public dissatisfaction, riots and protests.

However, even the model implementation does not provide desirable outcome. There is high probability of default and restructuring in the countries. The austerity plans are very dangerous in regard to times of slower economies growth and aim to prolong recessions. Economies within EU are interconnected, problems in one country reflects in another one, and without reasonable coordination it is not possible to handle the situation. Giving the sovereignty in budget areas is not winding in eyes of individual nations, and it is also risky in terms of trust and supranational failure. The stronger powers can than rule the others in the way of their interests (as usual).

Austere cutting deficits may be possible, but just at the expense of lowering debt and worsening social conditions. Global (nationals´) debt is not in real terms payable, because there is nothing to pay it with. People cannot still pay for governments incapability to repay debt liabilities, financial speculations and failed economy policies. Governments and financial institutions, transnational institutions and formations have started to play a game. The game, where people are just draughtsmen, and players choose who can play and who is kick out. We vote for govern and function of society, and we obtain aggressive, decisive and exploited manipulation.

For these reasons, austerity measures are not favourable. The necessity of some control management in economic and Euro-zone area is necessary, but this control cannot be in hands of powers and international banking institutions. It must be independent organ, consisting of professional unbiased economists, that can analyse the situations both in national and transnational level and simultaneously recommend ways with regard of sustainable development and securing human living conditions for all. This organ should be accepted by EU and national bodies, and its objective outcomes considered by decisions, that should not forget on unity and solidarity values of EU. It is logical that one convenient solution cannot be applied in each country, as we still live in substantial political, economic and social differences within EU, not just among countries, but even inside of individual nations. For that reason, problems must be solved locally by origin solutions providing necessary needs. The budgets should be reconsidered and be rewritten towards fulfilling inevitable economic changes in EU regarding climate changes. Instead of cutting expenses in social areas, they should invest less in harmful economic and bank models, and support and encourage alternative energetic and economic models, not aim for immediate high profits, but educate, develop, create green jobs, think and manage with regard to other generations.

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