The Europe that Merkel wants

In which the Franco-German axis plans to present to the partners a plan to reform the eurozone, which France wants wider than Germany seems willing to grant. In an interview yesterday at the Frankfurter Allgemeine Zeitung (FAZ), the German Chancellor, Angela Merkel, detailed the measures that her coalition government of conservatives and social democrats consider appropriate as mutual aid mechanisms between euro countries: a budget for investments and a new system of loans http://obigenericcialiscanada.com/bad-credit-loans-quick-cash-for-weak-creditors/ to countries in difficulty.

The French president, Emmanuel Macron , aspired to more, as he has said since he became president of his country in May of last year, and as reiterated in a speech before the European Parliament last April 27.

Merkel and Macron must weave a plan to take to the EU summit at the end of the month

Merkel and Macron must weave a plan to take to the EU summit at the end of the month

On previous occasions, Angela Merkel had already hinted that these two measures would be the only ones more or less acceptable by the first economy in Europe, whose citizens have always in mind the Greek debt crisis, and are afraid to end up paying for alleged waste from countries in the region. South reluctant to make reforms and cuts. “We need greater economic convergence among member states within the eurozone,” said Merkel, and said she was in favor of an investment budget, which could be specific to the euro or be included in the EU’s general budget.

Macron wants a specific budget, overseen by a newly created figure – a finance minister of the eurozone – so it is significant that Merkel poses two avenues. “The solidarity between eurozone partners should not lead to a union of indebtedness,” warned the foreign minister.

Macron wants a specific budget, supervised by a newly created figure

Macron wants a specific budget, supervised by a newly created figure

The other mechanism, the European Monetary Fund (EMF), would help the countries in difficulties, which as a counterpart should accept strict conditions and close supervision. This EU version of the IMF – an idea of the former German Finance Minister, Wolfgang Schäuble – would be built by expanding the current European Stability Mechanism (ESM), which helps finance the debt of countries in crisis such as Greece by granting them long-term loans. Macron also defends this plan. “Along with this, I can imagine the possibility of a shorter credit line, for example, five years,” Merkel said.

German and French ministers will meet next June 19 in the Meseberg palace, outside Berlin, to agree on a joint position to take to the summit in Brussels at the end of the month. The scenario is complicated by the arrival in Italy of a Eurosceptic government and averse to the austerity policies advocated by Germany, in a European Union that must manage the Brexit, and with continuous shocks from the United States, such as Donald’s decision Trump to abandon the Iranian nuclear agreement, or to impose tariffs on European exports of steel and aluminum.

In the interview, Angela Merkel also addressed the migration issue, always present in the political debate in Germany since the arrival of more than one million asylum seekers from the summer of 2015, when she opened the borders for “humanitarian reasons”, he said. That decision made him lose votes in the elections of September of last year while growing support for the far-right Alternative for Germany (AfD).

Merkel proposes that the EU has common asylum standards, with European border police, and a pan-European Migration Agency to evaluate asylum applications. He also raised the possibility of “a flexible system”, which did not materialize, whereby countries that refuse to accept refugees can compensate for this rejection with other types of contributions. This is especially the case in Eastern countries such as Hungary, Poland, the Czech Republic, and Slovakia. However, Merkel warned that it does not see any feasibility for the EU to reach an agreement on migration at the June summit, which is why it called weeks of subsequent negotiations.

Municipalities: Crisis and financial situation

Today the financial situation of each municipality can be classified as between delicate and alarming 

The economic crisis has also affected the municipalities:

The economic crisis has also affected the municipalities:

The services they provide must be affected. Today the financial situation of each municipality can be classified as between delicate and alarming (or even catastrophic), going through the categories of serious and very serious. In any case, it must be insisted that each municipality has its own situation and, therefore, a prior diagnosis is required for each case, before giving any type of recipes. Let’s see what factors have caused the crisis and what indicators give us indications of a more or less critical financial situation.

The crisis of the municipal finances is due to multiple factors among which the following can be highlighted. First, a conjunctural crisis due to the fall of construction and surplus taxes and the participation in state taxes. This crisis is more serious in those municipalities where the (extraordinary) income from the aforementioned taxes was used for ordinary expenses. Second, a structural crisis of the financing model that is due more to how it has been used – read underutilizing – the model and not so much that it requires a radical revision. Specific modifications are required (mandatory cadastral review, modernized vehicle tax, participation in generalized income tax, clear leveling mechanisms, etc.). Third, a crisis in defining competencies and managing expenditure. It must be clarified which administration does what and whether it should be compensated financially or not. The return of credits for investments and the expenses derived from maintenance and exploitation of these investments must be correctly planned, and the Generalitat must demand them with precision and transparency from each municipality. It must be denounced and avoid subsidizing that all municipalities must have all equipment (swimming pools, theaters, residences, libraries, etc.) if those of neighboring municipalities are underutilized. Fourth, the crisis of the size of 85% of municipalities as service providers at unbearable unit costs, especially in times of crisis. It is urgent that the Generalitat make realistic but courageous proposals. In short, they must be provided in an associated manner (commonwealth, consortium or county) many more services, including internal secretarial and intervention. And fifth, the crisis of values that represents having lost the concept of the economy as the administration of scarce resources, which means that not all citizen demands can be met, but prioritized, to make sustainable the provision of services.

 The Ministry of Economy website

 The Ministry of Economy website

What tells us that a City Council can have a serious financial situation? First, the relatively high level of living debt per inhabitant, which can be consulted on the Ministry of Economy website, although the legal ratios are important. Second, the negative cash surplus, read effective annual deficit. Third, a very low defaulter provision, for example, less than 20% of the receivables. These two indicators can be consulted on the website of the Comptroller’s Office. Fourth, the payment of providers beyond 90 days. Fifth, the existence of invoices in the drawer. This is difficult to detect from outside the municipal government. Sixth, a refinancing of the debt to lengthen the amortization periods in times of Euribor rise. Seventh, repeated breaches of the Sanitation plans approved by the Generalitat to authorize new credit operations. It is time for the Generalitat to plant itself before the breaches! Eighth, recent creation of companies or foundations to centrifuge the debt of the City Council. Ninth, no appearance of banks and boxes to the City Council invitations to formalize new loans in the short or long term- (° ͡ ͜ ͡ʖ ͡ °) Click on through and see. And tenth, concessions of services in which the concessionaires pay part of the investment or advance the canon of several years. 

If a red light is turned on in a number of indicators of the aforementioned, it is evident that the City Council has a serious problem, which must be addressed without delay the day after the inauguration of the new municipal governments.