Officially, the plan proposed by the European Commission aims to help European countries overcome the post-coronavirus crisis. In reality, it responds to another emergency: the deep crisis of the European Union. Faced with this lack of confidence, Angela Merkel and Emmanuel Macron proposed May 18 minimal solidarity. Indeed, Germany – whose multinationals are one of the big winners in this European construction – does not want too much solidarity. But on the other hand, losing this European construction would be even worse. However, this is exactly what the nationalism of Austria, Sweden, Denmark and the Netherlands could lead to, brought to Belgium in particular by the New Alliance (neo-fascist extreme right group, editor’s note). These liberal forces just want a big market without any solidarity. As it only widens inequalities, this policy could lead to the explosion of the Union. The Commission has therefore chosen to concede a little solidarity, a first in European construction, to save the essentials of this Antisocial Union and at the service of multinationals.
Figures to be dissected
That the first objective is to save the internal market is seen in the amounts. The European Commission has spoken of almost EUR 2.4 trillion, but this is smokescreen. Almost half of that $ 1100 billion is not “new” money. It is the normal budget of the European Union over seven years. 800 billion euros are loans or guarantees that will have to be repaid. So we are actually talking about 500 billion in financial transfers for the most affected countries and 500 billion is actually very little…
The Commission will not be very attentive this year, but in the following years, it will again want to apply austerity and the most neoliberal reforms. It is very likely that within a year, the Commission will again present structural reforms, austerity or, for example, the breakdown of public pension systems.
Who wins, who pays
Where will this money go? About two thirds of the new package will go through national reform and recovery plans, submitted by member states to the European Commission as part of the European Semester. Let’s not dream: contrary to what the ecological and social democratic parties might believe, this money will not be used for an ambitious strategy of public investment, strengthening of public services or pensions…
It is more likely to be the “all support for multinationals” model with a massive and free subsidy program for large multinationals. As at Lufthansa, which receives money from the German state, but can in the meantime restructure, lay off, lay workers, and send money to tax havens, to become bigger in the same world as before. Especially since SMEs are reduced to a footnote of the entire recovery plan. Finally, the new European health program will receive only 9.4 billion.
Finally comes the question of who will ultimately pay for this aid package. How will this money borrowed by the European Commission be reimbursed? There is no certainty. One option would be new fiscal resources for the European Union, but the Commission does not present any concrete proposal and only mentions a few avenues, some of which are very questionable: a carbon tax at the borders, a digital tax, a simplified VAT, a tax on plastic and carbon market revenues…
The fight is on
Rather than a plan which aims to save the market, we need an ambitious European plan of public investments at the height of the social and climatic crisis. Rather than a plan that risks making workers pay from Germany to Spain, we need a plan that makes large multinationals and European multibillionaires contribute through taxes, such as the financial transaction tax and a tax affecting the wealth of European billionaires. Such an ambitious plan should include a clear break with European austerity and all its mechanisms, in order to be able to benefit both European workers and the climate.
–
