Draghi’s Plan to Save the EU Economy Explained
ฝัง
- เผยแพร่เมื่อ 17 ก.ย. 2024
- Sign up to Brilliant for a free 30 day trial and you'll also get 20% off an annual premium subscription: brilliant.org/...
In this video, we’re going to look at the recently released report by Mario Draghi - 'The future of European competitiveness'. We'll discuss Draghi's prognosis for the European economy; his proposed remedies; and what might happen next.
🎞 TikTok: / tldrnews
💡 Got a Topic Suggestion? - forms.gle/mahE...
Support TLDR on Patreon: / tldrnews
Donate by PayPal: tldrnews.co.uk...
Our mission is to explain news and politics in an impartial, efficient, and accessible way, balancing import and interest while fostering independent thought.
TLDR is a completely independent & privately owned media company that's not afraid to tackle the issues we think are most important. The channel is run by a small group of young people, with us hoping to pass on our enthusiasm for politics to other young people. We are primarily fan sourced with most of our funding coming from donations and ad revenue. No shady corporations, no one telling us what to say. We can't wait to grow further and help more people get informed. Help support us by subscribing, engaging and sharing. Thanks!
Draghi seems to be the only one who learned from the mistakes of post-2008 austerity. Europe should take his suggestions seriously if it has any hope of competing with China and the US
A fucking italian talking economics. What a joke.
Draghi seems to be the only one who likes inflation.
@@user_Esqwhat's your solution?
To punish countries that followed existing regulation seems also to be a Bad insentive. There Must be a common rate of debt level to be agreed that everybody can have and then unify Debt. Otherwise it wont Happen
@@icephoenix5466 the rate of debt levels to be agreed should be increased greatly. Currently Europeans countries are operating way below full employment due to limited demand. More spending fixes this
It's so frustrating to hear that Germany has already basically shut down the idea of increased lending for innovation investment. The country is going through its own stagnation fueled by shortsighted investment policy and is now dragging down the rest of Europe for a similar fate. If Draghi's report is mostly disregarded this will be a mistake of historical proportions - once again ignorance fueling the downfall of a once great empire. I hope the power of European diplomacy sorts this one out and we can hope for a rebound of European economies
If innovation investment is important, then shift the actual spendings towards innovation investment.
Draghi always wanted EU debt to finance Italy. Which means Germany had to pay it at the end.
Well, our European neighbours thought destroying Nord Stream was a clever idea, so whatever. We can all go down together.
@@maritaschweizer1117 Nobody needs to pay for a debt of another country. Educate yourself about MMT
@@univeropa3363 but i mean Nordstream was a bad idea from the get go. we don't need to be relying onto foreign sketchy country, as european we need to trust each other, and we need to be independent within the EU.
france's nuclear plants are a good thing for the crisis and the energy needs, Germany's renewables are also very good. we should have put tarrifs on chinese renewabls to protect our european market, maybe paying more for the solar panels in europe but keeping investing and the companies developping systems.
investement is mandatory
- OK Mario you’re the smart guy how do we save EU competitiveness?
- Spend more
- No not like that
Making investment and spending should be put into two boxes.
When you create the environment for companies like amazon, google or microsoft, oracle, servicenow etc. to pop up, then you reap the benefits of a growing economy with greater productivity.
At the same time you have to get everyone on board that education is how you prosper, and also that if your dream is to improve the education system, there is a place to achieve that.
Which is not at all what he said. It just (once again a mediocre TLDR summary)
His main points are:
- Focus on european strength
- Stronger european coordination
- Decrease bureaucracy
- Allow better financing
This needs more investment (careful: NOT MORE SPENDING, it can also be redistributed) into stuff that actually brings returns. And doing that together rather than every country themselves. He proposes, that it COULD be done by EU-bonds, not that it should or have to be done. If people have a better solution go ahead.
Significant spending could also be opened to private investors. Since these are INVESTMENTS not just spending, it will pay back.
PS: There is a lot of government spending with little to even negative returns, that could be redirected.
For example: roadway capacity increases are still a huge spending point, even though, it is known to have not just "low return on investment" but a NEGATIVE one. As road infrastructure induces more unnecesary car trips, which then costs even more in repairs. (Cargo transport is pretty insignificant to overall traffic)
@@ayoCCNo states are not companies, because they print their own money.
@@ayoCC "When you create the environment for companies like amazon, google or microsoft, oracle, servicenow etc. to pop up, then you reap the benefits of a growing economy with greater productivity." - none of those countries are profiting from productivity or innovation that is so sorely lacking within the EU. And that comes from the insane amount of regulations on *everything*. Cost of setting up and running a startup is a lot higher within the EU than in the US. And all that comes after you've actually *built* something new. The mega-corps you've mentioned mostly "innovate" by purchasing good ideas others already innovated on..
More EU-wide regulations! Federalisation! That will surely save the day... Those dumb idiots can't see US strength is in the fact that all those 50 states have different laws, taxes, policies ? High energy prices? Let's drop more eco-taxes on carbon energy sources, that's gonna definitely help the industry, won't it ? China/India who have the co2 emisions deep in their behind parts will just wait for europe to catch up and not take over the market, for sure!
4:40 - renewable energy AND NUCLEAR ENERGY! This is a CRUCIAL tool to reduce energy prices and increase energy independence, and is correctly mentioned in Draghi's report multiple times, the video should include it too!
Finally someone talk about this.
Look at "localized cost of energy plus" (adjusts for battery costs) nuclear is more expensive and takes longer to build
@@dererik9070 first of all: no, it is not more expensive than renewables + batteries because 1) the cost of nuclear is extremely dependent on cost of capital, the very high variance in nuclear LCOE shows it: where cost of financing and interest rates are low, nuclear is extremely cheap. The EU/EIB could very well invest in nuclear plants providing financing at low interest rates and it would be a very good strategic investment for the EU for energy independence. 2) As of today no battery exists able to provide prolonged baseload supply, all the projections trying to evaluate its cost in the next decades are indeed projections and subject to uncertainty, and 3) even if improvements in battery technology would allow to provide baseload in the future (which is a big if and in any case would require time to develop before deployment), scaling that solution to nation or continent scale would be extremely expensive and resource intensive. Which brings to the other issue: the low energy density of renewables and battery storage means that a lot of resources and materials are needed per kWh, which need to be imported and mean relying on foreign powers much more than nuclear, so much for independence. That said, we do not need to choose one or the other: adding both nuclear and renewable generation is needed and each source has its place. Excluding either because of ideology is not smart.
Nuclear energy only works if you have seriously low borrowing costs, and seriously low opportunity cost of capital
No, nuclear power is bad according to the Greenies. Deindustrialization is what they desire, which will cause increasing poverty and lower birth rates. Great plan eh. 😐💚
I'm afraid this entire report will go basically ignored. A lot of countries are against a shared debt, a closer cooperation on important matters will be impossible as long as certain mechanisms are still in place (i.e. veto), some people still think their country would be doing better without the EU, European institutions are still not taken (as) seriously (they're basically a backup plan once your political carreer in your own country is done, mostly)... I'd kill for a european confederation, honestly.
I hope so, A fucking italian talking economics should be ignored.
I think they are more powerfull and more corporate thats Why corrupt politicians are going towards it. Its Like the difference between local and State politics.
To punish countries that followed existing regulation seems also to be a Bad insentive. There Must be a common rate of debt level to be agreed that everybody can have and them unify Debt. Otherwise it wont Happen.
You're an extremist whose opinions are a cause for the issues Europe is faced with. You have your EU, that's your confederation, and if you don't like it then fix it or change your views.
Not just a confederation, let's go for United States of Europe (albeit with a better name😂)
As long as Italy, Spain, France behave the way they do and do debt spending on useless crap...Absolutely, no share debt. Ever.
Lets start with the wasteful economies decreasing their debts to the mandatory 60% to GDP and just AFTER that, start discussion on shared debts.
This is my least favorite thing about News-YT channels like TLDR (or the news in general). EVERYTHING is always ´End of the World phrasing. "The EUs Economy is crumbling!" "EUs faltering monetary system" "Chinas crushing economic situation!" "The USs irreversible crisis", "Koreas dying out!" - When the worlds most wealthiest economies have a blip on the GDP radar TLDR seems to go ´Sweet it`s Doom o clock!´. The EU economy or Chinas economy are talked about with the exact same vocabulary as a Venezuela or a Pakistan.
Yes the EU economy is going through some crisis, but NO the EU market isn´t going anywhere. Yes Chinas domestic consumption crisis is not resolving, but NO China will not crumble and seize to be an influential world power.
Jesus Christ TLDR. Really? I understand the clkickbait titles are "Absolutely needed" (according to Zac) but is the consistent ´Doom is here´ language also absolutely needed. We already clicked on the video!
It´s a choice whether you write "it´s a question whether the EU will be willing to fund such a project amongst numerous other financial pressures" or "it`s questionable that the EUs failing economy can afford any reform" One is highlighting why economic pressures can lead to unwillingness to invest, the other is stopping half a step short of claiming the EU is out of money and the market has collapsed... 😑😑
It is right wing British tory rhetoric. They cant stand how well the EU is doing without the UK.
what do you want? They close their eyes and lies about the reality? :/
My thoughts exactly
@@semikolondev No I would like to talk about the issues like they are in reality. A billionaire making bad investments should for sure question how he uses his money but he`s still a billionaire and not about to beg on the streets for food. What´s happening is that the very wealthy EU is not growing as fast as before because of a number of unadressed issues. What`s NOT happening is that one of the worlds richest markets is about to be out of money, buildings in ruin and systems collapsing!
Agreed, let´s not close our eyes about reality. For example by neither pretending everything is super duper good, no issues or it`s the end of civilization.
I’m from a country with an actually nuked economy and live in the eu. This explains why every time I talk about my country it’s dismissed as if it’ll pass.
I was very eurosceptic in the past, but even though I am critical of our current bureaucrats I have to admit we desperately need a solid unified foreign and economic policy.
We just can't afford to keep going like this.
@hungrymusicwolf The heavy bureaucracy is a problem that results from the incompetent politicians we elect, not the European Union itself. There is nothing wrong with our united project, but there is a lot wrong with the parties we have.
i agree, same, i was very much against the EU, but now i realize the good it has been doing, and not to mention we are working on something that is barely 30 years old. it's just soo young to leverage things like the US or China so it just make sense that we see lot of hick ups.
we need to play together, because if we do play together we can really compete!!
@@Jochla That's true, but a political system that blames its people is a bad system (because it solves nothing). So we need to change the system.
People aren't perfect so they're going to elect flawed politicians.
Which means we need to make the system so people either more easily elect good politicians, or the system helps the politicians make better decisions.
Not gonna happen, we are entering period in politics where isolationism approach gains massive popularity because for instance united approach towards migrants backfired.
There is low level of trust overall due to unrecognized failures in EU politics. I'm nit euroskeptical to the point of leaving EU or anything like that but the issue we are in are caused by too big centralization already, good luck convincing anyone that going all-in on losing strategy will pay off.
@@andrzejnadgirl2029 It's not the same strategy though. The immigration strategy is something I have been critical off for as long as I have been political. The cultures don't match and we cannot get immigrants to adopt the culture at the pace necessary for it to work.
But cooperative economic and foreign policies are a different situation entirely. Cooperation is also different from centralization. We don't need a central body to decide everything, we just need to set a single unified policy we all have to adhere to. How we get to said policy is a different matter entirely.
Draghi is literally the only one who cares about the EU how about listening to him?
Seems you already answered yourself.
2024 people still thinking politicians care about the average Joe😂
Draghi cares ony Italy. Free EU money for italy...
@@XY-uc1tw what 😂😂😂😂😂
@@XY-uc1tw?????
I agree, coming from Portugal, we should risk it all now or never, china and US have huge debt and both countries are in a lot of ways doing better than europe
i agree, from france we can do it
@@sullfolife all that money will be wasted. the level of corruption in the EU political system is obscene.
@@pondeify If you believe what you wrote, then no plan will ever be good for you. So what should we do?
Are they really? Seem like an excuse for cutting cost of employee's in order of growth.
China is going down on the same path as the EU, slowly dealing with overproduction, high polution and health problems.
I wonder who they are indepted to?
The EU leadership over the last 15 years has been useless to say the least. I can´t think of a time in history when we´ve had a more inept bunch of politicians in charge. The EU had a decent chance of overtaking US productivity in the early 2000s, indeed the countries that have reversed austerity, i.e Spain and Portugal are actually doing quite well in terms of growth.
The other problem is everyone wants to take from the EU, but few people want to contribute. The Germans are pro-EU to the extent that they´re running it, the same with the French, the Netherlands are pro-EU because they need free trade with Europe desperately, but ask them to have a minimum EU corporation tax and they´ll use the veto, Hungary is pro-EU for all the subsidies, but ask Orban to obey basic human rights laws, and he´ll throw a giant hissy fit.
That´s the problem, many countries are only pro-EU to the extent that it benefits themselves. We really need a moment like the US had in 1789, when they realised "we can´t keep going on like this, we´re going to have to commit to more unity".
Agreed.
Of course, it took a literal interstate war (a small one, but still) to make the U.S. colonies realize that the Articles of Confederation were useless. Hopefully European countries pull themselves together before that.
@@davidblair9877 yeah, I hope so, sadly it looks unlikely, the anti-EU parties are doing quite well atm
@@Minimmalmythicist anti-eu parties are being funded and fed by Russia. Once the Russian propaganda problem is sorted, and we hope it does, those parties will fall behind.
I personally expect that rather than an internal war like it happened with the US in the 1700s, the external threat of Russia along the realization that we cannot trust in the US will lead to a change in mind.
"The EU had a decent chance of overtaking US productivity in the early 2000". Lol in your dreams. How delusional are you people? You guys hate capitalists, hate working, hate venture capital, hate banks, and hate businesses. In what universe could you ever compete with us? You think SpaceX could ever happen in the EU? Give me a break; they'd die in licensing hell before launching a single rocket. You guys like to sit around, drink cappuccinos, and feel superior about your tiny apartments and lack of AC. You should stick to that.
@@Minimmalmythicist change the debt limit and allow each state to invest more when needed. That will give stability and hopefully lead to growth
Short-term thinking will slowly kill us. Draghi has a true vision. I may not agree with 100% of his plan, but at least he has a plan, and quite frankly that's the most important part. Europe faces a choice of standing united in an ever closer union to achieve prosperity, or split apart and become a bunch of irrelevant third world countries.
True vision? Spending more money - and may be the productivity will rise-?
@@user_Esq The report is highly detailed about how and why spending that money. It's not just throwing it at a wall: There's a purpose to it.
Additionally, there's a lot more in the report, including structural reforms and strategic reforms.
Third world is a bit too much to say, theme park on the other hand…
@@albevanhanoy Its not throwing money at the wall, its burning money... 5% is just not possible, that would mean more than doubling the %. That would put 5 EU countries at the global top with laughable high numbers while half the EU would still be below 3%...
Some countries need to get their shit together and finaly cut their social spending and taxes to improve those numbers.
@@nox5555 Did you watch the video? Going from 22% to 27% is not doubling.
Our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyper inflationary environment, individuals must continue to use their hyper-inflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
How can i get started when it comes to investing and passive income?
I usually go with registered representative; Zachery M Demers, He provides a more grounded approach, looking at factors like market demand, regulatory changes, and adoption trends. This approach enable to make informed decisions rather than solely relying on emotional market dynamics
HE'S MOSTLY ON TELEGRAMS, USING THE USERNAME...
Was waiting for this.
A fucking italian talking economics. What a joke.
Nobody is talking about how tax-heavy Europe is vs the US. Also, how much more favourable US regulation is to business
They'll never accept cutting any benefits. So they can't cut taxes. They also won't stop regulating every iota of every process, so it will never be more friendly to business.
you do know that we get WAAAAAY more for our tax money then you get in the US right?
well done! as a european i feel EU should compete with both superpowers! US is our protector but... they hold us back economically! That is super clear when you look at where we are.
That is an utterly ridiculous accusation. "Hold us back economically?"
As an American, the US being your protector might be soon coming to an end.
Also, please explain how the US holds the EU back economically? The EU is notoriously over-regulated, which is one of the key reasons for the lack of economic competitiveness, along with a lack of federalization and common regulatory, tax, and legal framework between European countries. Neither of those primary reasons have anything to do with the US.
@@marktrinidad7650 American digital economy companies occupy a monopoly position in Europe. Such as Microsoft, Google, Apple, etc. These companies hinder the growth of European companies. These American companies must exit Europe. Give the cake back to the Europeans.
@@eyeofthetiger7 American digital economy companies occupy a monopoly position in Europe. Such as Microsoft, Google, Apple, etc. These companies hinder the growth of European companies. These American companies must exit Europe. Give the cake back to the Europeans.
EU companies get bought up and moved to the US. It's happened with a lot of stuff.
He is back ! The legend is back ! Super Mario !!!
Shared debt sound like a good idea if the EU controls where the money will be spent strictly.
Otherwise its a bad idea as economics like France, spain, italy and greece will spend recklessly
It's always a bad idea.
No it’s not, it’s really necessary sometimes because it binds all the countries together and allows for longer-term investments. It’s crucial.
The point is that under Von der Leyen, the EU is turning to a cloaer position to the reckless ones. And that is the key problem we’re in.
Draghi isn’t someone whose opinion should be taken into account either, his “Whatever it takes” brought us to this situation.
no thank you
It would mean a de facto end of sovereign nations in order to make it work. Take the retirement age for example, is it really the EU's buisiness to dictate the retirement age of its member states? If not, then it would mean that other countries will be paying for the lower retirement age of other countries, which none of the debt free/high retirement age states will agree on.
I don't love Draghi, but this report says it all and does it well. Too bad nothing will ever come of it.
To be honest, everything, absolutly everything he says about in this report has been says by French President since 2017 and more this last 2 years but nobody in Europe heard him , especially Germany which like to give more money to USA and China than to Europe...
Almsot as if takinf debt and making germany pay for it isnt actually a good idea
As long as the EU keeps spending 6.5% (at least) of the budget on bureaucracy it wil never get beter.
the big question then is, what % of budget is fair to spend on bureaucracy?
but if we ask that question, the EU will spend years and even more % of the budget to hire some EU-politician buddy consultancy firm to investigate/research how much % of the budget is fair so that will leave us worse off than before.
Not all the 800 billion are said to be borrowed. But increased by deregulation. If you deregulate, it increases private spending. Around half of the 800 billion is supposed to be private spending.
Having the ECB operate like a lender of last resort to support the bond markets of European nations that make large investments in their countries would be a great idea
It would be a terrible idea. We've seen what happens when central banks finance borrowing and artificially lower interest rates, 2008 and 1929 happen
@@Bolognabeef That's not what happened )) In fact if it wasn't for central bank, we would be properly fooked.
That’s definitely facto what the ECB does though the EIB and Connecting Europe Facilities
@@BerlinBoi67 They don't currently do it for large investments, they usually qualify it with a bunch of strict and relatively austere policy targets
@@Bolognabeef quite a simplistic view of both of those events. The natural rate of interest is 0 and its actually the government that has to try to keep them falling that low
All UK people would like to have Mario Draghi PM 🙏🏻🇪🇺🇬🇧
Nope, I wouldn't
european people have the same interest , governments have different interests , we have to get rid of the fragmentation , Draghi is absolutely right
No we don’t. Also no such thing as “European people “
@@user-ev1ks2gi6z are you telling me that we all don’t need security of borders and military defense, what about healthcare, trade , yes there is such a thing called european people , we shared the same land for centuries, we had a shared destiny, what always separate Europeans was the governments
@@dejabu24 and culture, and origins, and religion, and nationality...
@@roky7772 Europeans have the same origin and shared culture , they are derivatives part of the same set ,nationality is the same european only governments are different, those are mire administrative boundaries that can be change and have changed in the past , I don’t see why they cannot change again to something that will fit Europe better
@@dejabu24 Tell that to all the eastern europeans who earned their freedom recently, you think they want to be subjugated again?
Super Mario back at it again!
To be honest, everything, absolutly everything he says about in this report has been says by French President since 2017 and more this last 2 years but nobody in Europe heard him , especially Germany which like to give more money to USA and China than to Europe...
If you’ve ever studied economics, you pretty quickly learn about the concept of the neutral interest rate. It’s the interest rate that creates equilibrium in the goods market, the money market, and the labor market. If you deem it necessary to stimulate your economy by lowering your interest rate, inflation starts to rise because there’s simply more demand than supply.
However, if your currency is shared and every economy with its own neutral interest rate receives a shared one, problems arise. Germany, for example, would probably have a higher interest rate if it had its own currency, while countries like Italy would need a lower rate to finance their debt. These are normal problems with shared currencies and can’t be easily fixed.
One issue that arises is that if one country chooses austerity and others spend more than they have supply for, inflation occurs, damaging everyone. The only people who benefit are those with larger spending. This also happened via the quantitative easing mechanism, which in the end provided poorer countries with lots of cheap money, increasing demand. Given the current situation in Europe, this is why it’s simply a bad decision to choose austerity.
But now, let’s get to the reasons why it still makes sense for Germany to reject the shared debt approach. Draghi literally said that the only way to finance the transition is via debt. Okay, but why should it be the responsibility of Germans and the Dutch to care about others and essentially gift money to finance an issue they didn’t create? That might sound a bit polemical, but the point is that, if you look at the statistics, people from Southern Europe and France often retire earlier and receive, in percentage compared to their last job, more than the average German. Italians even have a higher average net worth than Germans.
Even though it might seem like Germans are wealthier, they make many sacrifices to accumulate their net worth. If you want common debt, then a new phase of EU integration needs to happen. If people continue to see themselves first and foremost as Germans, Italians, or citizens of other Eurozone countries, it’s simply a way to transfer money from the “rich” to the “poor” for their own benefit. Especially if you keep in mind the election choices made in Southern Europe, it doesn’t seem like there is a strong will to integrate further, or is there?
Keep in mind though, that this is really simplified in some areas.
I would like us to use all the lessons learned from the creation of the Airbus Consortium to create other European giants.
We need competitors in tech, in high-tech products and in many other areas where there has been no substantial investment for the last two decades.
France let Dailymotion died for no fucking reason except because the government didn't want to take a risk for example, we let the Solar panels productors died one after another because of our free trade policy focus.
Alstom and Siemens wanted to merge to combat the chinese rail competition. EU did forbid the merger...
I'm so happy I made productive decisions about my finances that changed my life forever. I'm a single mother living in Melbourne Australia, bought my second house in August and hoping to retire next year at 43 if things keep going smoothly for me.
Congratulations dear. You're really doing well for yourself, I'm 48 and my financial life is in a mess. Any great tips would really go a long way in shaping my life. I want to buy my own house, that's really a big flex
To be honest, investing rightly today can save you a whole lot of stress in the nearest future.
Investing in many source of income that are independent of government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Good assets and digital currencies are still good investment at this time.
This is superb! Information, as a noob it gets quite difficult to handle all of this, and staying informed is a major cause, how do you go about this are you a pro investor?
All thanks to Alesia Haas with her investment advice, at least I can afford a good home and also have to retire early.
A more unified Europe is a stronger Europe 🇪🇺 💪
Yes! Vote Volt (European party)therefore!
@@RasmusWitzig indeed
Who would have thought decades of high regulation and government overreach would have an impact on the economy.
That’s not the problem. The problem is that many countries invest to less in the economy. For example my country Germany. That’s because conservative or far right parties don’t want that. But economic experts are saying that this would help! So people must vote more center, center-left parties. Sadly most people don’t understand this. The far right is way to big in the parliament.
He argues for fiscal®ulatory union. Even pre-2008 EU members were quite reticent for a fiscal union. Main source of contention for eurosceptics.
Also, who will be the buyers of the new debt instruments? Will there be new concessions to external actors?
Lots of questions, but indeed a worthwhile exploration.
Lol you forgot the most important factor required for a strong industry:
1. cheap energy
2. access to big developing market
And having an ally who will not constantly sabotage your tech industry 😂
We have more fraking capacity than the USA.. Tell that to the greens 🤦♂️
What do you mean ally sabotaging? Are you talking about America?
Plus positive demographics. The whole EU is entering retirement and nobody is having babies, how is that supposed to grow the economy?
@@marktrinidad7650 nordstream anyone?
Pity Europeans think they will soon recover from the mess, but they're damn unsure about the cause. they're getting more and more dependent on the US, which is the cause of the mess.
Europe is done when they finally realise the cause.
So let's try a tiered EU thing:
tier 3: European Alliance (access to the single market etc. but no Schengen)
tier 2: European Union
tier 1: United States of Europe
Current countries start in tier 2, whoever wants can join the more federal tier 1 or move to more independent tier 3 (UK???). Countries outside of Europe could also join tier 3
Its not like Europe is unique in proposing debt to pay for this. The US has a gigantic deficit thats 7% of GDP right now
"gigantic" debt to gdp is going down since Biden took office looking at the deficit only makes no sense
Which leads to the question how sustainable this growth model is
@@steffenberr6760 state debt is the most natural thing. The states debt represents the wealth and income of the ppl. Its actually that simple.
We need to say goodbye that a state is to be managed like a household or a private person. Its nonsense
@@rli8594 sure but theres a difference between a debt and a deficit. The debt is less of a problem than the RATE at which it is growing.
@@steffenberr6760 depends on horizon I guess. Which inversion for which goal in which time? Without deficit no debt right?
And debt is limitied as per EU rules so... THAT would have to be changed first. And THAT is why I think its not gonna happen
We don’t innovate in Belgium. I got in trouble so many time at work for suggesting some sort of change that would not even be called innovation simply not using old already dead tech on new projects.
Good analysis of the problem. I just expect joint borrowing to create an incentive for governments to create new bureaucracy and consumption in the form of social programs. Increases in productivity is what happens in the private sector!
Mario Draghi: the Eu's professional technocrat
Imagine taking in people from unproductive countries and wondering why productivity and iq are crashing
It reminds me of EE's stock phrase "no-one can predict the future, least of all economists". Well, you can predict it, using common sense or listening to scientists.
True,maybe that isnt a good idea but the left doesnt care
I hear what Draghi says tbh. I have always said that the EU either needs to be less central and go back a bit (risking lack of competitiveness but avoiding the rich north vs poor south dilemma, and other chokeholds) or go into it a lot more, so that at the incumbent countries a lot of politicians can be removed. There is just too many levels of managing at a continental, national, regional and local level. inevitably, what the EU wants sometimes clashes with what the countries need.
small correction, Germany HAS the room to borrow that amount of money nearly alone. But it does not have the political power in the government to do so. The german finance minister is utterly incompetent failing at almost every aspect of his job because he clings to an arbitrary government rule mandating that "The government may only borrow x% of money in total" regardless of ecconomic need or circumstance. At the same time he managed to get 180 billion euros permanently locked for the next 60 years by being bad a book keeping. (And yes i mean locked, due to a ruling by the german Verfasgericht* (german version of the US SC) that money is now blocked and can only be used for its intended purpose when borrowed (80 billion are from the Corona relief and nothing can qualify for that since early 2023 and 100 billion are left from the reunification budget). All this money can do is being used to pay back its loan, but not the intrest on the load. So our self declared "market genius" created 180billion euros in stagnant money as well as roughly 30 billion euros in interest payments from money that can not generate more money.
With a finance minister like that it is no wonder that the german economy is stagnating. Btw he is from the liberal free market party and the liberal free market is his biggest critique, with his Party the FDP loosing every state vote and being set to get less than 1% (ofcourse this migth change) in the national elections next year.
*corrected
Verfassungsgericht, not Verfassungsschutz. So the minster can't act in an other way.
@@user_Esq thanks for pointing that out.
The issue is that he could act differently, but he failed to do it properly and was stopped. instead of using a bit of fantasy to declare investment in DB and Security as "aleviation of Corona induced issues" he simply named them as such and caused the entire issue. Previous governments did that all the time and noone would complain about money already borrowed being used. But people are complaining about having billions laying around, costing the sate billions more with no benefit to the country.
As i said, the german finace minister is absolutely incapable of proper book keeping in this regard. he is only interested in keeping the "debt break" pushed to the metal and sacrifices everything else for that goal.
Another more recent example. The Goverment finally decided to heavily invest into the DB after the disaster of the EM. Essentially every party aggreed on the investment, which is more than enough to legaly ignore the debt break for this issue. Guess which party was against it? The FDP (part of the government coalition) and guess who has a veto power when it comes to the deabt break? The finance minister. So despite a roughly 94% agreement on the budget for the DB investment one man singlehandedly denied it causing a massive loss in the markets by himself and risking the entire project, which could cost the german state billions more. By sticking to the deabt break he increased germanies future debt and caused a few hundered people to lose their jobs.
@@AlphaHorst Somebody has to keep the books in order. The greens are just spending spending spending and all of it goes to their friends.
Yeah not everything is going perfectly but you cant blame ministers for following the law...
Also Germany Is pretty close to the US even with this terrible government.
hitting the 3.5% of the US is possible and you find the money for that in the budget.
Other EU government need to do their part too, how is it okay for Italy Spain and Poland to not even invest half as much as germany in R&D?
@@AlphaHorst No
Youre not geeman arent you ?
“Slammed” SLAMMMEDDDDD!!!!
Bro chil
The report saying "the EU has had no massive corporations created in the last 50 years" like it's a bad thing, yeah maybe in "economic" terms, but look at the way those corporations are influencing politics in the US, paying politicians for favors and pushing all sorts of anti-consumer rhetoric, I'm glad the EU is regulating what is and isn't allowed here, but if these companies were in the EU, who knows what kind of political scheming they would get up to. No mega corporations in Europe is a good thing.
Yes the one thing less trustworthy than politicians are Corporations because they only have to answer to stakeholders.
Are you ready to go back to pre-industrial living conditions though?
but it doesn't say we don't have those mega corporations.... it says there are new domestic ones. Bosh-Siemens, PSA, VW, SAP, ASML, Airbus, Alianz... do you think these old giants do not influence politics in the EU ... also Apple, Google, Microsoft, Samsung, Facebook... they are all whispering into politician's ears and it doesn't mater they are not from here. And you don't even need huge corporations like that. All you need is a corp. big enough to influence local politics in Germany, France, Spain and newly Poland. And not even that... all you need is some local players like MOL in Hungary to influence a shitton of EU-wide politics. No new 100+ billion companies is an indicator of business environment in the EU and it is not indicating anything good.
@@Eddies_Bra-att-ha-grejerit must be balanced
@@Eddies_Bra-att-ha-grejer Wow I didn't think about that, you're so right, I've completely changed my mind.
We need to make Unions illegal, enshrine corporate tax evasion in law, make sure billionaires pay off all our politicians, tear down Europes welfare system, and let's not forget to bring back slavery, if we don't do this we'll all be eating dirt and living in caves in 10-20 years.
You are so smart btw thank you for changing my mind, however could I repay you for your gift of knowledge.
There are some good points to this plan. Like most people I do not agree with every point in the plan. But overall it has a vision and is looking to the future. But for it to have a chance of succes we need to for a starter to revamp the system. One country should not be able to stop a proposal from passing. We need to make a solid and ressilient union today not only for the problems of today. But also for those of the next 100.... years.
Save Europe
First step, stop aiding America in its misadventures around the world.
@@univeropa3363 yes
Its too late for that.
From neoliberals are rightists
from what
I love that we are blaming china for what US has done to us since the 80s.
Don't forget about ASML and ARM, there are still some innovative technologies coming from Europe..
ARM is UK based company, not exactly in EU.
@@mlynto Yeah, true
Some= 2
@@guraykundurac1050 Right after Nvida and TSCM, those 2 are the most important microchip companies in the world
@@guraykundurac1050 There would be no iPhone or ChatGPT without ASML and ARM
It is unbelievable that Europe doesn’t have euro bonds similar to treasury bonds. There will be plenty of buyers.
Based Draghi
Cap
Just speaking from my wheelhouse (military procurement), economic and industrial federalization is a must.
Economy of scale is how we achieve greater productivity. Right now, we are operating dozens of platforms that perform broadly the same tasks, to fulfill the same capability. This drive up costs of spare parts and maintenance, making EU defense investment less productive per unit of currency.
How the hell is Europe going to compete with the American or Chinese defense industrial base if we're still operating nearly a dozen different type of tanks, light armored tracked chassis, self propelled gun, and artillery of each caliber class? We won't.
We need standardization and scale with open ended architecture to adapt common systems to regional requirements. A common heavy armored tracked chassis. A common light armored tracked chassis that will serve as a basis for everything from infantry fighting vehicles to tracked self propelled artillery. Drop-in turrets and overhead weapon systems to go with those tracked chassis. Standardize on a single pattern of 60, 81, 120mm untowed and 120mm towed mortars, single patterns of towed 105mm and 155mm howitzers, a single self propelled drop in unit to fit on any truck to make self propelled wheeled platforms, the works.
European nations will have to specialize and complement each other to achieve a comprehensive solutions for defense industrial needs.
It's called competition and this place the general industry in a far better position than invest everything in a poor ultra expensive product.
GDP per capita isn't a perfect metric. Having one chair worth 200€ isn't necessary more important than having two 50€ chairs.
People should be able to satisfy basic needs before caring about fanciness.
it is important as it means people in euroep will be living effectively worse lives than those in the US< its a measure of how competitive your economy is
He does not talk about GDP per capita, he talks about productivity, which is € per hour worked. You can double gdp per capita by making people work twice as much, but that will not impact productivity. The problem for Europe's competitiveness is productivity.
Draghi said what everyone already knew but didn’t to want to hear. I am not too bullish on this EU, I really do not see cooperation between member states, beside Schengen.
Germany just ended Schengen bro.
@@hyhhyUh no?
I suspect this will not go down well. That's a shame. Personally, I would like to see a United States of Europe but I doubt this will ever happen.
That would require a Constitution, something both the French and Dutch have rejected outright. I suspect many more would have done so, if they had a referendum at all (quite a few gov'ts, sensing their populous was not in favor of said Constitution, point blank refused to hold a referendum in the first place). I was glad it faltered, we don't need more bureaucrats. Mind, I'm all for European cooperation (on specific aspects), certainly not integration 😕 The EU feuding with Poland and Hungary made clear vast parts of their populations do not align with values Western member states have on democracy, human rights, etc. Without common values, how can you reach a common goal?
Let's not start on leaders who are, or desperately want to be, on Putin's payroll 💩
What a load of bollocks. Even more debt and inflation, and wasteful public spending.
Can we get a video on the origins of european austerity?
@cobalt_plated_eyeball I remember among the most influential ones there was an alcoholic president of a northern Europe tax heaven
Wow this is basically what I ranted about while having a beer and talking about German stagnation the other day, my uninformed intuition was on point lol
@5:38 "Europe's crumbling economy"... what planet are you living on?
Europe is done
Draghi Cooked 🔥
Of course, the way to improve the economy is more gov't spending, says guy hired by gov't. (and for anyone arguing that it's an international institution not a government: these people clearly want it to be a government).
It's not a state, but I hope they will one day federalise.
Spending for R&D doesn't mean the gov goes and make R&D, can even mean tax breaks for companies which actually increase their productivity thanks to R&D
@@taylorc4598 tax breaks aren't spending though, it's just letting companies (or people) keep their money. Spending would be subsidies
Not just more spending...where do you get that. but intelligent spending. Invest in R&d invest in what works and create surplus. Not more welfare or a expensive new gov department more burocracy etc.
A monetary union without a political one was a bad idea
"Make Europe dangerous again" I want a blue cap 🧢 with that logo.
"Productivity" is not the right word, we are talking more about return on investment type of thing.
The European Union has a gdp ajusted to PPP of 26.6 trillion, while the US has a gdp ajusted to PPP of 28 trillion, however the US has more services than the EU as a proportion of gdp (80% in the US, 70% in the European Union).
In other words, the Americans are having to work longer hours, more days per year, and overpaying for simple services in order to maintain an inflated gdp number, so that the US can pretend to be the largest economy in the world by a large margin. China's gdp ajusted to PPP is 35 trillion dollars....
In the next 10 years the EU will surpass (again) the US in gdp ajusted to PPP, because of the rapid economic growth of Poland and Romania and the rest of the eastern European countries.
Long term harm there too. The collective mental health of an overworked people and where this leads to.
Ppp doesn't measure economic power, only living conditions.
@@MarketsDriveTheWorld It measures purchasing power, living conditions are mostly measured by HDI.
The key issue is growth. Good growth in Central/Eastern Europe is sadly not enough to compensate the overall trend (EU GDP growth 2023: 0.4%). We need economic power to protect our industries and drive R&D with subsidies large enough to a large enough base, and you must have growth for to have economic power. The next 10-15 years will be really important because traditionally a state like France, UK or Germany had enough economic power to matter alone and drive their own growth. In 15 years, those countries alone will not matter alone in any way, and their growth and their power will be dependent on external factors that we cannot influence.
@@Octopus773 Why won't they matter?
High single-firm market capitalization is an idiotic priority.
obviously bureaucrats say solution is more bureaucracy and governments always say the solution is more government.
How about we do the opposite? Deregulate and give more freedom to the countries let them compete and therefore reduce taxes etc.? Why that is never an option?
why people can't see that bureaucracy, taxes and regulations are killing the productivity? :(
His report literally calls for more efficient (read: less) bureaucracy, especially between European states. What do you think is easier for a company to navigate: twenty-seven small economies, each with entirely different rules and bureaucracies, or one large economy with relatively uniform rules and requirements? I'm willing to bet good money that the single large economy is easier to navigate, and more profitable to boot.
If European countries want to compete with the U.S. and China, a good first step would be the simple recognition that the U.S. and China are _big,_ whereas European countries are small. The idea of Germany, population 83 million, competing with China, population 1.4 billion, is absurd on its face. The Union, population ~740 million, might be able to manage it. That kind of mass provides a level of firepower which no individual state possesses.
@@davidblair9877 yeah his report seems to call for less bureaucracy, but then it calls for a 800Bn spending package. This is 800Bn for government driven research and economic investment. What is that? 800Bn more in the government for corrupt politicians to spend on their buddies and their failed projects (e.g. European laughable hydrogen agenda which are just handouts to gas industry in disguise).
How about we rally have less government - meaning *less* bureaucracy and *less* spending?
@@davidblair9877 is 800Bn more spending by government less government in your opinion? Please explain that.
Just because he said less bureaucracy, it does not mean he means is. Especially he contradicts himself by wanted increased spending.
@@JosefHabdank …spending is not bureaucracy.
Not the same thing.
At.
All.
Bureaucracy is not when government does stuff. Adding new rules increases bureaucratic load. Adding border inspections increases bureaucratic load. Requiring companies to open offices in every single E.U. state massively increases bureaucratic load. Offering tax breaks or subsidies does not-at least not if competently implemented. To say nothing of the fact that removing trade barriers actually _reduces_ bureaucratic load-something which Draghi recommends.
“Just because he said less bureaucracy does not mean he means it”
And just because I say you have mashed potatoes for brains doesn’t mean I actually think that. Nonetheless, I think you’d take offense. If your starting assumption is that everyone lies all the time, who do you take your information from? How do you know they aren’t lying, too?
UK Business People prefer to look for Mugs who will do everything and work for as little as possible, also live near site of employment!
Countries with low debt Levels would be punished for following existing laws. Its absurdity. Countries will have to be at a Common Level before anything is possible.
They can also borrow based on percentage gdp contribution to the EU so they don't get punished as hard while still having investment in the country.
But countries who before the Euro were advantaged to have floating exchanges got punished for having a common currency (think Italy and Greece), so it's only fair that if we want to unify our economies it's not only when it benefits others
Ok so let’s never do anything because there will always be countries with more debt and countries with less debt, great plan.
The common level we will reach is with everyone having high debt if we wait much longer and continue with this mindset.
If countries with low debt really thought that the EU does nothing for them other than "milk" them to help countries with higher debt, they would have left. But they didn’t (except for the UK, and they didn’t think they would fare better without the EU-they didn’t think at all, and it shows).
The reality is that even richer countries and/or countries with lower debt (one isn’t necessarily the other, and vice versa) receive massive economic advantages from being and staying in the EU. Only populists trying to mislead their voters would argue otherwise.
There’s no way we would fare better without the EU. In fact, we would fare much worse (on multiple levels, not just economically). And if we want the EU to survive, we need more cooperation and more integration.
Which, yes, would mean that countries with stronger economies would have to share part of their success with others and fare a little less well than they would have if they didn’t. But if they didn’t, the EU would eventually fall apart, and then they would fare much, much worse.
If we start or keep thinking that unions are bad because we have to share part of the profits and success we’ve achieved with others, then we should all go back to city-states and dissolve all countries.
Where would the USA be now if they had left the Confederate states out after the Civil War or kicked out the Rust Belt states in the '60s/'70s? Do you think California would have become the tech giant that it is if it had been a country of its own, without the US?
I don't understand some people mindset. I read comments that state the obvious "investments would benefit poor or indebted countries at the expense of rich and low-debt countries."
Let's say it's true, which is not, so what? So all the politics for the reunification of Germany, even with European money were wrong? Of course not. So was it wrong to divert Europeans funds to eastern European country to help them develop? Of course not.
Now, i could agree that giving money for free to failed governments (like next generation EU) is a mistake, but if the EU takes a political stance and walk toward a Federation, it would be like exFDR helping out exDDR or like the northern Italy with the southern and you can find many more example in each and every EU countries excluding the tax heavens (which are really a problem we must face one day or another)
Whatever Paul Krugman says, the correct thing is the opposite.
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Moving from the US to Europe 12 years ago probably cost around €2 million in lower pay, lower returns, and higher taxes. Whoops.
Europeans must choose....
-Welfare and full pensions for the old
Or
-Jobs and Prosperity for the young.
@@AaronVanWolfen Or we can decide to simply create more money or tax the rich
That's super accurate actually
@@till_teewurst8674 Taxing the rich creates decrease in jobs and prosperity :-) Just look at Norway raising wealth tax. Their billionaire fled to mostly Switzerland. UK, under Labour and them going shady about tax changes, drives record number of millionaire out of the country (only country doing slightly worse is China..that has about 20x the pop).
@@till_teewurst8674Yup. Allow central bank financing and abolish the 3% deficit rule.
Maybe don't take in migrants you can't afford
Draghi is not talking about government spending when he says investment. He did estimate that part of it will come from governments because EU countries most likely will not be willing and able to create a very good private investment environment, but he never said the government should do it or should play a major role.
What Europe needs is deregulation. Massive amounts of it. Europe needs it's entrepreneurs back, and stop them from leaving to greener pastures such as US. Alas, since Europe as a whole is ruled by bureaucrats, who despise entrepreneurial spirit and averse to risk, the best thing they can propose is "borrow as much as you possibly can and try to drown your problems in money". Which never worked, never will work, but will give all the power to said bureaucrats, as if they needed more, while completely ignoring problems which they cause.
People should listen to experts instead of criticizing them for being rich and friends of the bureaucracts
You left out the main thing : excessive regulation is stifling innovation in Europe and killing its startups
Us and China also have a lot of that
@@dererik9070not that much as europe though
@@dererik9070
Nothing in china is regulated. You can run a MNC in your backyard, and a manufacturing giga factory over your farmland. Nobody is gonna ask you the regulations. They only ask for innovation and its successful implementations.
Excessive regulation, AKA, businnesess exploiting holes in the law and wanting to abuse their current power aren't allowed to.
No one regulates good behavior.
@@BlueFrenzy you are naive
The problem of renewables in Europe is 2-fold. 1. Location, location, location. Basically the north sea and Baltic sea has strong wind, and their coasts have decent wind, the rest is very low yield. While the Mediterranean region and black sea coast has solar potential. That means most of the wind coincides with the population cores in UK, Netherlands, Belgium and coastal Germany (and sea of Marmara region if you count it), and solar with the Mediterranean coast population belt. The rest are impractical due to very long transfer distances and loss from that or low yields.
2. Tight capital environment. For the past 30 years when there has been a focus on renewables, we've had a global capital market of abundance and low rates, now with baby-boomers retiring worldwide and lower percentage of experienced working age population capital costs must be higher as private capital investments go down and existing capital gets liquidated to retire on. Most renewables have the majority of the cost up-front and must be financed, and higher capital costs change the break-even point/timeline and which locations have high enough renewable yields to be financially viable.
My personal take, we really need huge investments in scaling production of "boring" (proven reactor tech stack) small modular nuclear reactors in closed-loop systems and rolling that out for the next 10-30 years, as the return on those investments are likely much better and quicker for many geographies, and also due to just industrial material production availability needed per GW of production capacity in the timelines and total power amounts needed for a not horrible climate outcome. Sadly I'm not seeing much action along those lines.
I am in Sweden. We work 43,6 years on average. Majority of countries in EU work less then 40 years on average. I am not interested in borrowing money together with someoen who work more then 3 years less then me.
100% agree. As a German I´m absolutely dissatisfied with the idea of joint borrowing with countries which do not act fiscally responsible while we try to keep the debt burden small.
So, your reason for being against a plan that could bring prosperity to 450 million people, including your own family and country, is that some people work a few years less than you? Sounds a little silly, but to each their own...
Sweden is at least not in curreny Euro. We german taxpayer paying last 20 years for south europe....
@@XY-uc1tw Germany is the country that benefited the most from Euro.
@@jules_laurent I am against that someone else give my money to someone else who work fewer years and pay less tax. Equal effort equal reward. Paying less tax and working fewer years is putting in less effort for me and should result in a smaller reward.
So EU countries that don't borrow like crazy should now be responsible for "shared" debt so countries that all ready maxed out on national debt can borrow more. 😮
So, EU countries should have no customs and one currency so they can be prey of other states with stronger industry and economies, that's why EU was born? To exploit the weak?
Vote Volt Europa if you want to have policies like this implemented. They have been talking about 5% investment into R&D since 2019🎉
Yeah the only downside with volt is their views on immigration, which is too naive and left imo. Still voted for them on several occasions
The youth needs to wake the f*ck up
@@sonneh86what are their view on Immigration if you don't mind?
@@cliffordjames4462 they advocate for an EU-based sharing of immigrants, to decrease pressure on southern Europe as well as promoting skilled immigration by giving people educated in STEM an easier time getting a visa ect.
@@ajrob1546 Well, if one isn't a racist bigot that's a very sane and good view on immigration. Since Schengen is a thing immigration could only really be solved on EU level, not on a country-by-country basis.
One thing that is being missed is that the EU's economy has actually caught up with the US over the last quarter century.
From 92% in 1999 to 99% last year.
This is evident when you look at GDP converted using current price PPPs as opposed to constant price PPPs.
It's entirely possible that the difference in growth rates is entirely a measurement issue rather than a real issue. I suspect part of it comes from how some countries measure productivity in the public sector (very hard to do), they don't and just use headcounts of employees to calculate on output making it impossible to record any increase in productivity.
I seem to remember an enlargement in 2004 (and another in 2007). EU-2023 (450 mil) has a bigger population than EU-1999 (385 mil) even with Brexit.
@@peterfireflylund
Sorry should have said, this is the current 27 member states throughout
Source: OECD
Seems like the report does a good job of identifying the problems but the solutions presented are somewhere between unlikely to happen and impossible. Individual nations are moving away from the idea of Federal Europe not closer.
Alone we are doomed
Cause the EU fucked up migration policy by being too globalist.
hmmm, not sure about the last part
@@mateabonyi299are you european?
They're not? The UK kindly sacrificed itself to show us that leaving the EU is incredibly stupid. Nobody, not even hard eurosceptics, talks about leaving anymore. [country]-exit has been removed from public discourse.
Expectation that non elected bureaucrats like von der Leyen will bring EU out of its slumber are very optimistic, to say the least.
I’m pretty dumb but when I hear ‘Federal Europe’ I’m all ears
What i noticed from reading comments on federal europe, is that most ppl supporting it have no idea what a federation is.
@@uusrano Why do you think so?
@@uusranoElaborate?
You already said you're in favour of federalisation when you said you're pretty dumb haha
@Langharig_Tuig Sure Ivan, sure...
The EU and its members need a capital market and need to be far more aggressive in high-tech as that is the future, especially being that the US and China are going full steam ahead when it comes to high-tech investment, the EU countries are lagging behind.
If the EU countries really want to compete with the US and China, they have to do it at an EU level, those two have the major advantage of being a single country, whereas the EU is a union where a lot of policies are done at a country level at much smaller scale, that's the major disadvantage EU countries face and I do wonder how much decline is needed for the countries in the EU to wake up and realise that they need to work closer together though the EU to get better results on the world stage.
In any case, Draghi is right, major changes are needed and too much time has been wasted already.
Do note that while the US is doing well economically, their self-reported life satisfaction has dipped over the past 10 years. Both in absolute terms and in relation to Europe.
Imagine a world where our politicians used that as a metric to be optimized...
US is 35T in debt. Only thing propping them up is the dollar. Once that loses even a fraction of its value they're cooked
I'm not much looking forward to that happening. It's a global system now and when they start trying to extract more value from that system to compensate we are all going to suffer.
@@NeygarzruinedAmericaso say dollar loses 20% of value in forex. By what mechanism, exactly, will US get cooked?
@@NeygarzruinedAmerica
Saying nominal numbers to make them sound scary = worthless take
they have a debt to gdp of ~120% Japan has 250% and is doing well with it.
That's a meaningless figure. Americans are generally optimists who are more willing to voice dissatisfaction and generally place little value in the status quo. Europeans are pessimists and endlessly prideful about whatever hovel they live in. You guys brag about living in tiny apartments you don't own and not having AC for Christ's sake. Someone gives you a baguette and you think all is right with the world, meanwhile an American with a house, two cars, a high-paying job, etc is dissatisfied that the price of a burger went up $0.5.
United States of Europe when? 💪
A Croatian newspaper called him resposnible for the stagnation, as he was the leader of the ECB during the financial crisis. Also, wasn't the monetary bank supposed to be decoupled from politics?
He wasn't responsible since the crisis has its origins in the fed not the ECB, but absolutely yes central banks should always be separated from political decisions and especially they shouldn't be taken as a cheap way to increase GDP
@@Bolognabeef why should monetary policy should be separarted from politic? Its litterally politics but in hands of bureaucrats who have their own agenda (ordoliberalism mostly) and the people have no control over it.
@@Burito-tj5ry an independent CB means low inflation, when the CB is influenced by politics, usually, you've higher inflation.
US FED has 2 mandates, to keep inflation low and to keep unemployment low. ECB has only 1 mandate to keep inflation low which is easier to do and they did it. ECB must stay independent, otherwise Euro currency will lose value even more. Destroying currency to gain a growth will end up in tears.
@@Burito-tj5ry because central banks are a super easy cheat code for politicians that want to spend a lot. It works much better if the politicians are kept far, far away from the money press...
So basically we are at a point where a new EU treaty is needed, one to clarify whether the EU will become a federation and act like one in the world stage... Or if the EU will stay as a union trying to act as a single actor and failing due to the polarity of opinions
Wrong
''Economy' is just a fancy word for 'yacht fund'
Nah
Whatever it takes. Cit. Mario
If only the West had learned from China earlier to implement wiser long term industrial policies. Humanity as a whole would have been so much farther ahead now.
have you seen china these days ? D: they arent exactly doing well probably worse then us
@@normanwei529 China nowadays have high tech companies leading the world (Huawei, DJI, BYD etc.) and their rollout of renewable energy is exploding. WTF is Europe doing???
China is a dictatorship, not a model we want to follow. Also, it's a single country not a group of countries with different languages, currencies and laws.
China and Wise really don't mix... they look like a train with no breaks and they're not even worrying. The real estate bubble, the shutting down of globalization and implicitly of their export based economy, oh and especially the demographics. They're projected to come down to only 800 million by the end of the century. Only South Korea is doing worse globally.
Give it some time. The EU is young
We dont need to borrow money we just need to created it using ECB. Euro is ours and is strong enough to do it.
Southerners always love to spend Northern money
And Northeners love to Export their unemployment and deindustrialize their neighbour's business
FINALLY, I know the name of Mr. TLDR #1 now.
Paul Krugman gets mentioned - should i switch video....
i never lend money to people who cant handle money. especially not if they think they dont need energy.
Imagine you live in a slowly failing apartment building, and someone comes to inspect the structure. They say, 'Yes, you need a huge amount of money to fix it, more rules over the ones that weren't working to begin with, and you should get 'creative' with your solution. My job here is done. Cheers.'
None of the things this individual mentioned will solve the demographic issues, the red tape problem, the high debt issue, or the problem of investing in 'ethereal' new technologies. Moreover, the suggestion of adding 'more solar panels' is laughable in addressing energy needs. Europe, and the EU in particular, is facing serious decline, and some seem intent on extracting as much money as possible before it collapses entirely.
Imagine you live in a slowly collapsing building. Each apartment has his own book account, but they cone together when it matters relations to other buildings and rules for the building they are in. They are weak though: they need a big assembly, as the building has not, contrary to others, representatives.
Here comes someone with a solution: unite the apartment into one complex, with its own representatives, debt etc..
The single apartment say "no thanks".
Then go back to bickering and wondering why nobody is doing something for the building that's falling apart
Amazing how some societies refuse to actually solve their problems.
Europe has tons of anti-productivity policies, taxes, and regulations, and then wonders why productivity is lagging. And then, hilariously, thinks the solution is more taxes and government spending (which is notoriously inefficient)
Coudn't agree more. But federalists have no better idea then (like always) more EU and therefore more bureaucracy (but of course they promise the opposite would happen).
“Signor Draghi, we have a problem, and we want you to propose a solution. How about you tell me your solution before I tell you what the problem is?”
“Certainly. Whatever the problem, the solution will be giving more power to the centralised institutions of the EU, and taking more power away from the member states.”
“Excellent. We understand each other perfectly.”
Anti EU: "EU doesn't do anything, what is its purpose?"
EU: "Ok, then let's .."
Anti EU people: "No"
EU: "Then how about we..."
Anti EU: "No"
EU: "Then give me more power"
Anti EU: *Hiss*
EU: "Well, I can only do this. That, that and that, I cannot do"
Anti EU: "EU doesn't do anything, what is its purpose?"
Rinse and repeat
@@NoName-hg6cc "EU doesn't do anything, what is its purpose?" - This has never been the objection I ever heard from any Eurosceptics. Their argument was always that the EU limited the self-government of its members, e.g. how can you be self-governing if the ECB sets your monetary policy and interest rates?
When China began its post-Mao reforms under Deng Xiaoping, Deng’s strategy was to allow some provinces of China to diverge from the national plan, and try some experimental variation. When they diverged, most suddenly did a lot better economically. This led to the other provinces demanding the right to try the new approach too. Eventually the new approach became the norm. I’m not saying that Maoist China is an exact analog of the EU. But the principle of discovering better policies by allowing more experimental variation might be a good one. But it’s unthinkable if you’re a Guy Verhofstadt type centralising hard federalist.
There is no political mechanism through which this plan could be implemented. It's just wishful thinking
Maybe so, but the whole idea of liberty was just wishful thinking before the revolutions.
So that means it's just one step off (a political mechanism) from being a complete solution.
@@hungrymusicwolf Right, who needs freedom when we can have german technocrats in brussels telling us what to do
@@hungrymusicwolf I don't see such a plan being implemented by force, there is no chance of Germany accepting debt sharing willingly and zero possibility of a political reform of the european parliament while Hungary keeps vetoing any and all projects over his frozen eu aid
@@calimerohnir3311 What the hell are you even talking about? Nobody mentioned force? Is force the only political mechanism you can think of?
@@hungrymusicwolf did you? ... did you not read the rest of my post?
I believe this should really be thought about and even with pushback we should try this and at least try it.
I clearly remember a recent video about how eu zone doing good. Doesnt seem like you beleive what you are saying.
of course he doesn't..this channel is PR spin for EU failures