PAWNED EUROPE IN DEEPENING THE ECONOMIC IMBALANCES

There is not exit and it is not the title of a movie it is the reality economic politics of the European Union, I believe that it is not necessary me to insist much more in the differences economic point of the countries like for consequence of it of the societies that we conform the European union and concretely still more those that we compose the euro area. Be like bet I cannot obviate this reality to baste this I articulate, it is like he said evident the social and economic difference between Spain and Germany in the social aspect is enough to say that the first one has 24% unemployment and the second have full employment, but it is that a Spanish employee also wins on the average half of a German employee. 

Politically this is irrational and economically it is a disaster but what is inconceivable is that not alone he doesn't want to get ready but rather it is still wanted to deepen more this aberrant social imbalance to make a next comparison is as if a multimillionaire manager that wins double what pays together in wages to all his employees, requested a credo to improve the conditions and when distributing it makes it proportionally to the revenues of each part it is clear that the manager still serious but rich and the poorest employees.  

Very since this is what plans to make the European Union through the actions of the European Central Bank (BCE) on the program of purchase of sovereign funds they continue filtering information’s to the media, that the BCE seeks to distribute its purchases of funds proportionally to the social capital that has each country in the institution.  

This way, the entity would dedicate to acquire Spanish funds 12% of the future QE (quantitative flexibility) that, according to the script, it would approve in its next meeting, that of the day January 22. The president of the institution explained this way to it, Mario Draghi, in his first interview of the year: It should include the purchase of a variety of active, included the sovereign" funds. 

Of these information’s filtered so far being confirmed, the BCE would buy 62.798 million Eurus of Spanish debts in the secondary market, since he cannot go to the primary one for direct prohibition in their statutes. The entity would buy around 25% of the emissions of funds for 2015 that he has foreseen to capture the Public Treasure. The contribution of Spain to the social capital of the institution is of almost 1.000 million Eurus, what represents 8,84%, up-to-date data at January 1, percentage that means that the BCE will dedicate 12,56% of its future programs from purchase of funds to buy Spanish debt. Why this difference? Because the countries of the Euro zone have 70% of the capital of the entity and among them 100% of the purchase program will be distributed of active. 

The respective central banks of each country of the area euro pay a certain quantity annually to the central bank with headquarters in Frankfort, in function of the relative weight of their respective GDP in the total. That contribution would determine how much debt of each country the BCE could acquire, as it pointed out the consulted source that he underlined that he has not still taken any decision. The last data that he offers the institution are up-to-date to date of the 1de January and the total of the capital ascends to 10.825 million Eurus. 

If the BCE dedicated 63.000 million Eurus to buy Spanish funds, for Germany it will use more than twice as much, in short 127.840 million Eurus. It is the figure that, like in the Spanish case, it is obtained on a program of half trillion Eurus and the proportion of each State member in the social capital of the entity. 

Why will he buy so much quantity of German funds if the country doesn't have credit problems and is the State financed in historical minima of profitability? Very simple, the BCE has to apply a program that it is equal, he cannot choose some countries and to only buy its funds, since it would mean that the harmed partners assume a part of the risk of the beneficiaries. 

This proposal of acquiring funds in function of the social capital contributed by each country to the BCE is a proposal that the technicians would be shuffling to try to design a plan that achieves, with the types of interest to zero, to control the inflation. It is the currency of change that you/they will have to accept the leaders of the central banks of the outlying countries so that Germany doesn't reject of plane this program.  

The blackmail is total as they can see it is to my way of seeing incoherent to continue being member of the “European Union of Germany" he is not possible being so imbecile as it is it Spain and its government that it accepts besides being the poorest in europa after Greece that above want to still minimize it more it is clear that after Berlin took in the face of the justice to the previous program of purchase of sovereign debt, the OMT, is that it won't be possible that the alone BCE buys funds of the countries in problems. It will be necessary to devise a chart of proportions of the stanchion that will dedicate to each country member and this it seems the option that he takes weight and the one that took to bigger economic and social disproportions to the “European Union of Germany”.