International

In the run-up to last week’s extraordinary summit there was a prevailing atmosphere of excitement, but as the results became known this quickly ebbed away. Yet the government leaders have a great deal to explain to their countries’ citizens, having in essence stuck their heads further into the noose, without in reality having taken any effective measures. The worst possible scenario has arrived.

Greece will get more money, some €109 billion. The banks and other financial institutions will make a contribution to this, initially of around €37 billion, though this figure could yet increase. If you reckon up what this means for the Greek debt, you’ll note that 20% of the total – a fifth – has been annulled. According to most economists this is not really enough to help Greece to overcome its problems, which would require a minimum of 50% debt relief.

Still more important is the decision to open the emergency fund to countries which are not as yet experiencing problems but which are judged to be in danger of falling into difficulties. That is a massive victory for the Eurofanatics. Very soon it will turn out that the fund is therefore too small, because the new provision will mean that a whole series of additional countries will be able to call on its resources – think of Italy, Spain and Belgium. The countries which are doing okay will then also have to pay up. For the Netherlands this means that we will be obliged to stick our heads still more firmly into the noose, and ever more national debts will be guaranteed by us. In this way we are becoming more and more dependent on developments in other member states.
In short, a half-hearted compromise when it comes to the Greek debt, and at the same time Messrs Barroso and Van Rompuy have won yet another victory: the emergency fund is increasingly taking the form of a European Monetary Fund by means of which member states are being welded together. The voice of the public, which everywhere in Europe is calling on Brussels to take more of a back seat, failed to make itself heard at this summit. Nothing new in that, but it’s nevertheless extremely worrying, because the gap between the political elite and ordinary members of the public can only grow as a result. It merely allows us once again to see how undemocratic these European Council summits really are.

The recess in Brussels is now under way, and for the next three weeks the Parliament will be closed, so there will be no weeklogs. On 14th August the SP European Parliament team will be back in harness, and will proceed with renewed heart. If you haven’t already been on holiday, have a good one.