THE LEFT YOU THINK IT IS POSSIBLE TO END The AUSTERITY AND MAINTAIN THE EURO BUT 'A TRAGIC ERROR (PROF. NINO GALLONI)

Sunday, June 29, 2014

Professor Nino Galloni, economist, former lecturer at the Catholic University of Milan and the LUISS University of Modena, tells what developments await Europe after the election, but most importantly, what will happen in Italy, the crock pot is the Old Continent.

Extraordinary interview. Read.

A month before the European elections does not seem to have changed much, except for the fact that the EPP and PES have thrown the mask of fake opposition they have had in recent years and will begin to govern together also in Brussels. What are your predictions, economic and political, for the next few months?

The recent case of Libya proves, beyond any reasonable doubt that in recent months the European Union has made ​​giant steps back, at least for those who believed in the project, and tend to a geopolitical isolation and compared with the major strategies being carried out by the United States, Britain and Saudi Arabia on the one hand, both the new realities of the emerging countries (China, Russia, India, Brazil ...), on the other.

Europe has lost all trains potential and the release of Alfano as interior minister proves it: "you bombed Libya and now leave us alone." It 'a serious situation. From the storm in the glass of water to the European elections has emerged as the vast majority, over 80% l'', the electorate is against austerity. But, prevails, especially in the PES, the idea that we should go out dall'austerity, but remain in the euro, so in this Europe. This position presents irresolvable contradictions, without prejudice to the recent interventions of the ECB. In the short and medium term, in other words, I predict an increase in the social conflict that will not explode in uncontrollable levels only if the monetary measures of the ECB will have an effect on the real economy, as it hoped Dragons. If this does not happen, the crisis will go behind the current Italian government and the main party of the PES in Europe, in both cases, the PD Renzi.

What are the choices to be made immediately in the emergency current company?

Making a public bank in Italy to collateralize loans of public administration that would be, for what I read in the press of the ECB eligible. It may well manage in time about 600 billion Euros with which to make plans for hydrogeological, school construction, a real working plan, the income of citizenship, research and development. Without these resources, it is obvious that we can not really get out of the crisis. The euro has been done to the austerity and austerity for the euro: If you are unable to remedy this contradiction, reducing the conditioning of the Treaties, not if it comes alive.

The emergency I have studied at the national, rather than European. And in Italy you can immediately issue of paper money, the State may issue vouchers, vouchers, certificates of credit erariali to pay its debts denominated in Euros but they are not legal tender, after which this fiduciary money goes to circulate among individuals, restarting the economy and then the state accepts it in payment of taxes and duties. If this is done at the beginning of the accounting year and has an effect on GDP will not increase the deficit. If Italy could invest in this way, 50-100 billion a year of its claims processed in Euros to make investments, then certainly that would incorporate competitiveness and efficiency.

At European level, everything remains at the theoretical level: impose the fact that investments are outside of Maastricht would be a great step forward, but in theory, as it is theoretically also say leave the euro to return to currency devaluations, because the 'EUR was just done to prevent Italy devalued. A bill are the theoretical discourses of esteemed colleagues, I share the analysis and also the solutions, but only at the level of theory and academia. In practice, however, we must confront the fact that the single currency was created to prevent Italy from being too competitive.

In the present context, what is the country that could put a short ultimatum for participation in the euro zone?

If you do not thinks so it comes out: save us all if we accept the same rules and the same logic for the next. If Germany wants un'austerity Limited for themselves and for all the other Europeans (without selecting for the East) and France wants to protect itself, but not for the others it comes out. The real change of views, attitudes, mentality: selfishness leads only to destruction, wars, violent social conflict, barbarism.

Believes, however, that there is a country where the situation is most at risk?

Certainly in France, where social tensions are at breaking point and even Marine Le Pen could prove to be suitable for the leaders to get out, despite his statements altogether moderate and somewhat acceptable. The risk is that other forces take over. Even in Italy can be seen in both M5s on the bright side, ie you have moved a whole series of new energies, but as well the same Grillo said, the fact that he had appeased the degeneration of the protest still potentially out of control ready to ignite. If the 5 Star Movement talks with Nigel Farage, the scenario is post-European, vice versa, the paradox is that with Le Pen may come to a confederation of sovereign states invoked even by Putin. This presupposes, in my opinion, at least a dual circulation. Virtual currency, accounts and offsets and international money real, popular, nationwide.

Interview conducted by Alessandro Bianchi for Antidiplomatico. It - thank you.