Michel Klompmaker
The discussion during the video consultation between the EU finance ministers under supervision of Mário Centeno last night and tonight has not yet produced any concrete results. Consultations will resume on Thursday, but the damage that has already been done is significant. The aim of the consultation is the understandable call for Eurobonds from the southern EU states. This call is getting louder and more logical given the extent to which the economic consequences of the corona crisis hit in those countries. But there is fierce resistance, especially from the Netherlands. The Dutch Finance Minister Wopke Hoekstra got the anger on his neck from the southern countries with some blunt statements.
Meanwhile, the southern countries were so angry that a group of Italians decided to place a full-page advertisement in the German quality newspaper Frankfurter Allgemeine, with an appeal to Germany to mainly distance itself from the Dutch position. This is very curious to say the least, but it shows that it is serious from the southern countries. Wopke Hoekstra and his prime minister later admitted that the statements had not been so empathetic. Meanwhile, a lot of damage has already been done.
Right now, just after the unfortunate departure of the British, which they will regret a few years from now, but this aside, it is important that Europe shows that they are an economic power bloc, that is outwardly united and radiates solidarity based on some fundamental European values and a currency. Gnawing from within by populist currents fueled by discontent can only be suppressed if the national leaders initially adopt that European stance. But, this is not the case everywhere for national political reasons, with the result that electoral national motives play a role, with all the dire consequences for Europe.
And what is it all about… The Netherlands is already a dime in the front row if it wants to borrow money on the capital market. With a national debt of about 50 percent of the gross national product, the capital market is prepared to even pay money to the Dutch government if it issues loans. How bizarre can it be if we also take into account an inflation of about 2 percent. Hoekstra does not want to give up this unreal advantage, while this would be a great gesture of solidarity to the southern countries.
In the event that the Netherlands continues to adhere to this line, the economic consequences could ultimately be much worse, a small child can think of this. Apart from the blunder to offer a gift of 1 billion euros. Perhaps the finance ministers of the northern countries should be obliged to live and work in one of the southern countries for three years… after all, the government is now imposing all kinds of mandatory measures on its citizens.
