THE INABILITY OF UNDERSTANDING ITS ECONOMY ANNULS TO THE EUROPEAN UNION.

 

It seems already truly the game of the nonsenses, the IMF, the European commission, the BCE, all demand changes to the economies of the Eurozone Germany it seconds them, but the alone changes take place in the outlying states that don't agree but that they depend on their execution although it costs them to put in danger to their societies and their own productivity. Result the European economy collapses, then so that we want a Union, so that we need a European economy, if we don't know how to manage it, better it would be to break it and to enter again in the national competition of each economy in front of the other ones.  

 

Made this introduction wants to pass to outline the one that I believe it is the solution for the European Union regarding its global economy. Me diagnosis is that the European Union seeks to stabilize an economy based on the euro that is very above its reality and possibilities, I believe that incomprehensibly the Union Europe, wants to agree with to the German theses regarding the competitiveness and to the productivity, and for consequence to the economic strength. And God willing can be made, but somebody has to see the reality and to expose it, so much to government's advice in Brussels, like to Germany. The conglomerate mosaic of nations that they form the current European Union and more concretely the euro area in no way cannot sustain the productive economic ratios of Germany, it is impossible from the structural point of view and me he/she would say that physically.  

 

An economy based on the industrialization and the commercial surplus as the German sustained by 82 million inhabitants, is impossible to expand it to more than 350 million inhabitants, (alone in the euro area), and much less to more than 500 million of the current European Union. Let us be sensible if him GDP of Germany you extrapolates like standardize for the whole union, the macroeconomic figures would jump to the impossible thing we see if not, the GDP of Germany is considered more or less in 2.8 trillion Eurus 34.500 Eurus per capita. The GDP of the rest of the euro area is that is to say of 7,2 trillion Eurus about 30.000 Eurus per capita, that tells us that the area euro to be equaled, its global GDP of 10 trillion should increase to 12 trillion Eurus some this 2 trillion in percentage the Eurozone 20% it should grow more and this should be made in the countries of the south and France not in Germany. 

These macroeconomic figures leave well to the white that one cannot make an economic politics in Europe, to image and likeness of Germany for the whole context of countries, it is necessary to break this idea or it is necessary to organize compensations it is necessary to carry out plans of relocation of productions or what is wanted, but you cannot seek that Greece has a GDP like Germany, it is absurd and impossible, I don't say it in pejorative sense to the Greek society, it is that he doesn't have possible infrastructure the own country for it, another fundamental point also exists, if the euro area ends up expanding its GDP to the analyzed figures, where it would place its production of where it would take out its commercial surplus, we should flood the China and the USA of products "Made in UE." 

 

This whole reasoning comes for the continuous fact of the German economic positions, supported by the world institutions as the IMF, Germany seeks and Europe doesn't deny it that the deficits is balanced to solve the sovereign debts, debts that are been in fact of 15 years to have passed trying to balance the social rents of the inhabitants of the area euro, without controlling that this could not be, without appealing to its leverage by means of the creation of sovereign debt have been made this way and now we have problems because it is necessary to correct the deficits behind without any real productive support. 

We don't go this way anywhere except to the total ruin, the area euro what has to make once and for all is to accept this reality and dimensioned their economy to locate it at the true level of the group of the countries of the euro, and assuring it face to the external markets, fact that would allow him to resurge with certain force. I believe that the plan of investments that Juncker is proposing is a good solution it is necessary to invest in productivity and in structures and not in debt but it is necessary to make these investments where they are necessary and this can be the hardest thing of everything and what brakes the intervention of the public investment that is vital in the plan Juncker. 

According to my approach the investments should go to the poor area of the Eurozone and of the UE and not to Germany to give an example are not able to or we should not make stronger to Germany because if we make it every time we make weaker to the rest and this is not good for the own German economy because at the end he was left that is to say without potential clients it will lose anything less than a market of more than 200 million consumers that will be ruined and they won't be able to buy German products and we will be grass of the Chinese products to give an example. 

It is evident that this should be a well negotiated and directed plan because the possible private investors can happen that alone they want to invest in the rich economy of the Eurozone (Germany and their influence area) and this should correct and to guide the investments to balance the poor economies so that their increase of productivity supplements and enlarge the economy of the euro area, and for I finish I wait that the ascents of interests that the FED announces for the dollar, he will help but it is urgent that the euro is devaluated for if same, not because the dollar ascends, because this will maintain the high euro for the rest of the world economy, it is necessary to devaluate so that it is an advantage to buy products of the area euro in front of the market dollar. Alone with some macroeconomic adjustment measures they will be able to leave the well in that you/they are more than 50% of the economies of the Eurozone.