They got the Europe of the euro will ensure compliance with the Greek debt payments and charged more. At the same time demanded that the government introduce an austerity plan that reduced the deficit, freeing up resources to pay additional interest charged by a higher premium against risk. With this, people were punished for excesses and lies of others, betraying one of the fundamental values \u200b\u200bof a united Europe: its economic model and social solidarity and fairness.
This European model of solidarity allowed the crisis relatively unaffected by the level of life of Europeans, despite causing an avalanche of layoffs. Compared with what was happening in other countries, including the U.S., it is clear that the European model is socially advisable. Obviously it cost money to European governments: increasing the dismissal automatically accounted increased government spending to ensure a minimum income to the unemployed.
This partnership model is the market attack. Every battle, that is, each time when governments of the European periphery auction debt securities, the markets are more euros. In the recent battles have been victorious. This week, for example, the English Treasury placed 6 billion euros in 10-year bonds to 5.6 percent, paying a risk premium of 2.56 percent over the German bond. A year ago, a similar English placement risk premiums paid by 0.76 percent. The placement of 2011 billion additional cost of interest earn and lose the English market.
has been repeatedly raised that Europe can not allow markets to be imposed and social defeat model allow us to achieve and then maintain adequate living standards. The economic dilemma is a political and social dilemma. Markets that demand austerity and governments cut social programs. The crisis was caused not only by the Americans. Bankers and some European governments involved in massive credit expansion and benefited. Punish entire populations by something alien to its performance is clearly unfair.
Capitalism is unfair, but in Europe it was less. Each placement of debt is a new battle for limited resources. So far they have won the big cities, despite the civil resistance, general strikes, demonstrations, strikes have not served sector. In the coming battles those affected will have to try new tactics of resistance to force their governments to change the sense of responsibility: first the population and then, if it reaches the markets. Otherwise lose the war distribution.
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