French President Emmanuel Macron is often praised by the left-liberal milieu for his supposedly pro-European attitude.
By this the continent of Europe is confused with the EU.
And the supposedly Europe-friendly attitude of Macron is only the demand for reforming the EU.
The demand for reforms however stems from the economic plight of France. France still has an export deficit. In addition France together with other euro countries have been accused of being insufficiently competitive. Export surpluses have for example Germany and the Netherlands.
The export surpluses displace additional jobs in countries with export deficits. Since the local economy is replaced by imports in this case German imports. Surplus-countries is thus operating at the expense of other countries and exports unemployment to other countries. Thus the Surplus-countries violate the Maastricht Treaty and in the case of Germany the German Basic Law. Since Germany has an export surplus and this exceeds the contractual limit of six percent. [1] [2] Export surpluses and all other financial transactions are summed up in the TARGET2 balance sheet. As one can see the TARGET2 balance sheets continue to deviate.
[3]
But France also joined the Euro-Monetary Union in 1999. And a monetary union is characterized by the fact that there is only one key interest rate. And above all exchange rates disappear with a monetary union. As a result the key interest rate was too high for some countries and too low for other countries. In addition exchange rates eliminated the possibility for countries to balance their foreign trade balance. An even development of wages and labor productivity in all euro area countries was thus necessary. But this was not the case. This is visible in the unit labor costs. These are the wages in relation to labor productivity.
[4]
As one can see other countries succumb to German wage restrain. As a result Germany provides lower prices through lower wages. And due to the lack of exchange rates the other euro countries are at the mercy of Germany's exports. But even without Germany the imbalances would remain due to different unit labor costs. If Germany were no longer in the euro then the next country would take on the role of the surplus country. The Netherlands achieves its export surplus by exporting natural gas in addition to usual goods and services.
So if the supposedly pro-European president promotes Europe, then he means the EU and thinks of the French export deficit. If the demands of the French government were met, this would pave the way for a transfer union.
[1] Grundgesetz Artikel 109
https://www.gesetze-im-internet.de/gg/art_109.html
[2] Maastricht-Vertrag
https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ:C:1992:191:TOC
[3] http://www.eurocrisismonitor.com/Intra_Eurosystem_balances.xlsx
[4] NOMINAL UNIT LABOUR COSTS, TOTAL ECONOMY
http://ec.europa.eu/economy_finance/ameco/user/serie/SelectSerie.cfm
The demand for reforms however stems from the economic plight of France. France still has an export deficit. In addition France together with other euro countries have been accused of being insufficiently competitive. Export surpluses have for example Germany and the Netherlands.
The export surpluses displace additional jobs in countries with export deficits. Since the local economy is replaced by imports in this case German imports. Surplus-countries is thus operating at the expense of other countries and exports unemployment to other countries. Thus the Surplus-countries violate the Maastricht Treaty and in the case of Germany the German Basic Law. Since Germany has an export surplus and this exceeds the contractual limit of six percent. [1] [2] Export surpluses and all other financial transactions are summed up in the TARGET2 balance sheet. As one can see the TARGET2 balance sheets continue to deviate.
[3]
But France also joined the Euro-Monetary Union in 1999. And a monetary union is characterized by the fact that there is only one key interest rate. And above all exchange rates disappear with a monetary union. As a result the key interest rate was too high for some countries and too low for other countries. In addition exchange rates eliminated the possibility for countries to balance their foreign trade balance. An even development of wages and labor productivity in all euro area countries was thus necessary. But this was not the case. This is visible in the unit labor costs. These are the wages in relation to labor productivity.
[4]
As one can see other countries succumb to German wage restrain. As a result Germany provides lower prices through lower wages. And due to the lack of exchange rates the other euro countries are at the mercy of Germany's exports. But even without Germany the imbalances would remain due to different unit labor costs. If Germany were no longer in the euro then the next country would take on the role of the surplus country. The Netherlands achieves its export surplus by exporting natural gas in addition to usual goods and services.
So if the supposedly pro-European president promotes Europe, then he means the EU and thinks of the French export deficit. If the demands of the French government were met, this would pave the way for a transfer union.
[1] Grundgesetz Artikel 109
https://www.gesetze-im-internet.de/gg/art_109.html
[2] Maastricht-Vertrag
https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=OJ:C:1992:191:TOC
[3] http://www.eurocrisismonitor.com/Intra_Eurosystem_balances.xlsx
[4] NOMINAL UNIT LABOUR COSTS, TOTAL ECONOMY
http://ec.europa.eu/economy_finance/ameco/user/serie/SelectSerie.cfm
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