Mostrando entradas con la etiqueta economic crisis. Mostrar todas las entradas
Mostrando entradas con la etiqueta economic crisis. Mostrar todas las entradas

miércoles, 15 de mayo de 2013

In- Out referéndums

Nowadays, there is a question about if belong to a Union or not, if belonging to a country or getting independence. Why is it all about? and Why now? 

In the UK the EU referéndum can be a double edge sword. Scotland wants to stay in the EU, so they may get a better change if the leave the UK and then apply to the EU membership. However, if they vote in 2014 to remain as apart of the UK, they may vote therefore to stay in the EU in 2017. David Cameron, Primer Minister of the UK, on the side of the Conservatives is playing with fire. 

But the same situation can be applied to Mr. Mas, President of the Generalitat of Catalonia, Spain. They would like to get autonomy because they think they would be better as an independent state. Perhapps, but have they measure the consequences? Debt, EU membership, Spain vs Catalonia relationship, and so on. It is not an easy decision that can be taken fast, but quite the opposite it is necessary clear information of the situation, the difficulty to foreseen the unknown, and of course consensus and negotiations with the Central Government. 

The economic crisis is putting everything upside down. The EU today doesn not look as successfull as it did five years ago. Some territories want to have a referendum to leave it, and others to be a new state of it. What is it that? This "cherry-picking" is not viable today, and every member, country or territory must be solidary and work together to rearrange what one day it looked as a good idea. It is also necessary to protect national identities, what I think it is all about at the end. 

martes, 12 de febrero de 2013

Can the 2013 achieve the economic targets?


After more than four years fighting against the economic recession, it seems that 2013 can be the turning point for some countries. United Kingdom is expected to get out of the recession this new year, as forecast announces an economic growth of 1.2% of Gross Domestic Product (GDP). However, the hit European countries, in which Spain is part of, will continue into stagnation. Spanish prevision of growth in the next year is still downturn, with a minus 1.2% decrease of the GDP in 2013.

UK´s economic strategy “is focussed on reducing the deficit, restoring stability, rebalancing the economy and equipping the UK to compete in the global race”, as the Chancellor of the Exchequer, George Osborne, explained in the Autumn Statement to Parliament on 5 December 2012. On the other side, Spanish austerity measures have only contributed to increase unemployment (up to 25%) and to provoke more social unrest.

However, it it necessary to remark that neither UK nor Spain are likely to kept their forecasts of deficit reduction in the year that has just entered. The objective of Spanish deficit was 6.3% of GDP at the end of 2012, “but it could be (above that),” as the Bank of Spain governor, Luis Maria Linde, said last December 2012; although estimations yet predict Spanish deficit to drop to a 4.7% of GDP in 2013. On the other side, UK will also miss its deficit target from the 2013-2014 financial year, as the Autumn statement announced an escalation to 5.9pc of GDP, or £98bn, as Mr. Osborne indicated (hm treasury, Dec 5th, 2012). This data would indicate that the UK deficit next year could be higher than the Spanish's.

Therefore, new cutting measures will be necessary to reduce deficit and the extensive public debt. UK budget cuts are not significant, only 1.5% real cuts during 2012, if compared with Spanish ones where the most striking difference is that Spain does not include any measure to support growth as UK has setting up. For example, UK new policy includes increasing funding for UK Trade and Investments or helping smaller and medium-sized businesses access finance and support “from £25,000 to £250,000 for two years” as Mr. Osborne set out in the Annual Autumn Statement. This strategy can probably be the best solution to alleviate the financial situation; something that the European Union also instituted in its programme 2007-2013 “new funds, better rules”.

martes, 9 de octubre de 2012

Social crisis, instead


 Since "networks are part of our reality" (M. Castells), I will perform this role sharing some ideas I have gotten from Manuel Castells, today at London School of Economics (LSE). Under the title: "The crisis always rings twice", Manuel Castells gave us an answer about how the financial crisis has caused. He explained that it is/was "a combination of new technology, through a process of deregulation and reckless of financial managers".

Financial system is built in a sense that people do not mind. As Manuel Castells explained, reffeing to the action we are taking to solve the financial crisis, "we save the banks, but let the people fall". He also interpreted the current crisi of the power´s system as one where the "elites have lost the capacity to rule the financial system".

Furthermore, there is a more important cause for the moment we are living in: a social crisis. Since every economic process implies a social process, here it is the explanation of how people interact and organize through the network and the implication this has to our lifes. Manuel Castells refers the networks as an important basis of the self in what he calls it "the real virtuality", where information is the cornerstone of humanity.




He links the social process to the fact that the economic crisis has lead us to a social crisis, pointing out the question: "who has lent money to a non-family member? not many nowadays", was his answer. And, who will be able to work less if they will be paid less? A positive answer of the former question is what he describes as "post capitalism" or "non-capitalism" society. That it will probably happen soon.

However, meanwhile there is a process of marginalization. Here, the case of Greece came out as "they are going through a process oof desistegration on its political system". Also, the Spanish indignadoswas  represented by the statemet of "when systems block, the new social opinion is formed".

Therefore, he made sense of the fact that the economic crisis is not over, but there exists a political crisis to legitimacy that has been followed by a social crisis where: "European identity will work fine as long as there is not crisis".

Everything here emphasize the current economic and political crisis with a new aspect: a social crisis. However, it was his last comment what called my attention: "the non-global global crisis", where global economy is growing.