The “Injured” Liberal Democracy in Europe and the retreat of the Liberal Democracy Model as a Governance Instrument-Part IV

It is certain that many of these requests that will be recorded during the Great National Debate both in the digital platform and in the “notebooks” of complaints and problems that will be available in rural areas and has appointed from the Government of France, in order to better resolve will require the acquisition of increased purchasing power and income respectively from the French citizens.

The ways of resolving all these social and economic problems

These solutions can only come from the lower cost of living in relation to their wages and incomes.

In summary we will mention that the lower cost of living can be derived from two sources and their simultaneous combination:

1. A drastic reduction in taxation throughout the economy if wages and incomes remain unchanged.

2. From the drastic increase of the available incomes of citizens through the finding of well-paid jobs (works) on a long-term horizon.

However, the creation of such works/projects on a large social scale for many citizens will must open a major debate on whether the public sector is working to its full potential at the lowest possible cost.

by Thanos S. Chonthrogiannishttps://liberalglobe.com

So that the public sector to succeed:

a. The maximum possible use of human and natural resources,

b. Raising the standard of living of the citizens the public sector serves, 

c. But also, whether the public sector assists, as a helper in the society that serves to create the appropriate institutions and conditions as well as opportunities to enable qualified individuals to fully manage their potential for the benefit of themselves and the society in which they live. Either these qualified persons work in the public or private sector.

The public sector costs which is financed mainly by the taxation of private sector activities.

In our opinion, in order to correct the social and economic problems of France and the majority of the member-countries of the euro area and the EU, but also the EU-Commission state itself based on the French model of the newer state, it should implement greater consolidation of the Eurozone and transfer of political power from member-countries governments to the Commission, while changing the state model in the Eurozone/EU (EU Commission).

The proposed policies solutions-strategies

The question that is asked directly is how to achieve all these:

  • Political solution-Strategy 1

When we say state model change means that, the EU Commission and more generally the leaderships of the Eurozone/EU member-countries will must agree in the implementation of a common low ceiling on annual public spending on central government budgets of member-countries in relation to their GDP.

The same common ceiling on annual public expenditure should also be applied to the euro area’s single common operating budget. This policy will allow the release of terrifying capital to be channeled to all Euro area/EU citizens respectively through the application of equivalent fiscal value measures to the economies of the member countries.

The aim is to drastically reduce the cost of living as well as the reduction of the public sector which will allow the drastic and equivalent value reduction of indirect and direct taxation.

A set of detailed economic, political and fiscal policies and how they should be applied both to individual member countries and to the whole of the Eurozone/EU the reader can read in the analyses with the following titles:

«The Sustainable Solution for the Eurozone (EU) Economy-Part I» posted in https://liberalglobe.com 17/01/2019, category: fiscal, which presents the ECB’s political and economic efforts to date to avoid the prevalence of deflation in the Eurozone but also the appropriate fiscal strategy for the Eurozone economy.

«The Sustainable Solution for the Eurozone (EU) Economy-Part II» posted in https://liberalglobe.com 31/01/2019, category: fiscal, where is presented the non-effectiveness of the euro area financial framework and clearly are indicated which are these fiscal policies that should be implemented for the euro area as a whole.

«The Sustainable Solution for the Eurozone (EU) Economy-Part IIΙ» posted in  https://liberalglobe.com 7/02/2019, category: fiscal, where are presented how the proposed policies of shrinking government spending should be implemented in the budgets of the central governments of the Eurozone member countries in order to drastically reduce taxation on their societies. Additional are indicated and the future results of the proposed by The Liberal Globe fiscal framework that will need to apply in the Eurozone/EU.

«The Sustainable Solution for the Eurozone (EU) Economy-Part IV» posted in  https://liberalglobe.com 14/02/2019, category: fiscal, where are presented and are indicated respectively the adoption of operational rules to tackle unemployment in the Eurozone as a whole.  In addition, is presented the appropriate organizational structure in relation to the fiscal framework proposed by us in the euro area, which does not currently exist in the Eurozone, but also its corresponding results.

At the same time, it demonstrates with which way and without to exist any problems and conflicts between Euro-area member countries, will have to be done the adoption of the public debts of the Eurozone member-countries as the common public debt of the Eurozone.

  • Political solutionStrategy 2

Further details on these policies for the reduction of the public sector size and how they will be implemented, causing the least possible political cost to lead to the single common operating budget of the Eurozone and how these will be applied the reader can read the analyses titled «The proper way to achieve the Single Operating Budget of the Eurozone-Part I» & «The proper way to achieve the Single Operating Budget of the Eurozone-Part II» equally posted in https://liberalglobe.com,  on 27/12/2018 & 03/01/2019 respectively, category: fiscal.

  • Political SolutionStrategy 3

The transfer of funds currently committed through taxation for the maintenance of the public sector in the pockets of citizens, and of citizens belonging to the middle- and low-income class of a society, will increase their total demand and consumption and their total savings levels respectively.

Complementary policy in this effort to create growth in the Eurozone/EU will be to change the way of organizing and managing the development funds of NSRF (National Strategic Reference Framework). For more information on this policy you will must read the analysis titled, «The Proper way to Organize and Manage the Development (NSRF) funds in order to achieve growth in the Eurozone» published in https://liberalglobe.com, on 10/01/2019, category: fiscal).

Another complementary policy for the development of active growth in the Eurozone/EU is the proper management of the guaranteed deposit system in the Eurozone/EU. More details about this policy and how to implement it you will must read the analysis titled, «How the guaranteed deposits in the EU can help to develop the Eurozone Economy» posted in https://liberalglobe.com on 20/12/2018, category: economics).

  • Political SolutionStrategy 4

All these proposed political solutions-strategies (policies) will lead to a common fiscal, economic and tax policy in the Eurozone territory, while at the same time giving the European Central Bank (ECB) the opportunity to leave the policy of almost nil euro basic borrowing interest rate for the purpose of artificial creating inflationary pressures in the Eurozone economy.

The growth that will be created by the implementation of all these policies-strategies will be to such an extent that the ECB will have to harness inflationary pressures rather than trying to provoke them as it happens today.

Next, the Eurozone’s common fiscal policy will lead to the smallest possible cost of financing the single European army and defense, which will further boost the Euro area/EU GDP levels. Drastically increasing the levels of global growth and GDP respectively.

For more information on how to organize and create the single common European army and European defense, please read the analysis titled «The Creation of EU Defense & its Defense Forces» published in https://liberalglobe.com on 25/10/2018, category: geopolitics.

  • Political solutionStrategy 5

Regarding the solutions to the great social problem that is plaguing and wreaking discord between the member countries of the Eurozone/EU, the migration problem is being solved if the political will exists from all the leaders of the Eurozone/EU.

More specifically, the reader in order to understand what kind of policies will must be implemented to solve this huge problem will must read the analyses titled «The Solution to the Migration Problem for the EU-Part I» & «The Solution to the Migration Problem for the EU-Part I» published in https://liberalglobe.com respectively on 18/10/2018, category: social.

The future of the Eurozone/EU

Only with the implementation of the above policies-strategies will can be achieved the social well-being of all the citizens of France and the other member-countries of the Eurozone/EU respectively. The fact that the French model of state has been adopted by all the member-countries of the Eurozone/EU and the EU Commission (except Germany) equally does not mean that the Anglo-Saxon model of state does not have any problems.

But the citizen in a country that follows the Anglo-Saxon model of state has learned to trust the state and its political institutions, which knows that it will do its best and that any social problem will find its solution.

In contrast to the European citizen who, when the problem or the problems he faces, is not solved is the fault of his political leaders who cannot find solutions and impose them from above, thus going out into the streets and becoming “war” with the representatives of the state (i.e. the police).

Where in those moments the European citizens do not see the representatives of their state as fellow travelers and guardians of their lives for the common achievement of the good of social prosperity, but as representatives-praetorians of «Caesar in the Praetorium», who oppress them.

A common problem that both models of state (the French and Anglo-Saxon) and their respective societies have, is that their citizens are frustrated-particularly the citizens with minimum qualifications-because they cannot find well-paid jobs on a stable basis so that they and their families can live decently.

At the same time ignoring all the political systems in every country that in the ballot box, irrespective of the economic situation of the citizen, all citizens have one vote.

The danger in this is not so much the popular resentment and the burst of rage but the pervasive frustration that turns to despair and drives the frustrated electorate into the hands of every authoritarian populist and professional liar desperately searching for solutions to its problems.

But one thing is certain that the river of change in Europe is underway.

Either the French Presidency and specifically the President of France Emmanuel Macron will seize the opportunity and lay the foundations for the change of the French state model with the simultaneous implementation of innovative policies that will affect all Eurozone/EU member countries, leading it to integrate with the implementation of a common fiscal, economic, tax and defense policy across the Eurozone.

Or he will miss the opportunity, and he will try to implement short-term quality and effectiveness policies (e.g. increase of minimum wage, tax reduction, etc.) by masking inflated problems for a partial period. With result the demands and the movement of yellow vests equally to reappear stronger and dominate the European citizens, causing a political and social earthquake in the streets of Europe.

For all this, all European citizens will must be grateful and all together to shout: Long Live France!!

Thanos S. Chonthrogiannis

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