The author of the text “Financial Times” refers to the erstwhile German Chancellor Angela Merkel, which in the past pointed to immense social expenditure Europe. As Janan Ganesh estimates, numbers change, but the point remains the same—they are Too big.
In the past, Merkel has advocated cuts to "protect the specificity of the European lifestyle", but now the reasons are far more important. It's about Protecting the lives of Europeans. And that requires resources.
"How else to finance the full continent than through reducing social spending?“ It sounds from the text.
Coming out of an uncertain geopolitical situation, which is fueled by the next extremist or unexpected movements of the fresh administration Donald Trump, is not – according to the author – further debt.
Radical cuts in social spending for Europe's security?
Another option that the author analyses is tax increases. According to Ganesh, this could happen, but it is worth considering all the “for” and “against”.
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Such actions could affect Europe's competitiveness, among others, in relation to the US. Examples besides appear in the text France and United Kingdomwho late tried to rise taxes, and then had to face protests or political consequences specified activities.
The current kind of functioning of European economies was, in the author's view, a question of "strange historical circumstances" that arose in the second half of the 20th century. Ganesh includes American grants through NATO and a young population of countries. Now that Europe's society is ageing, pension and wellness obligations become challenge.
"A crisis is needed"
“Governments will should be more scant with older people. Or, if this is unthinkable, given the weight of their votes, the blade will gotta fall on more productive expenditure areas," the author estimates.
According to the Financial Times, the increase in social expenditure over the last century was "An alarming global‘. However, chronic discomfort is not adequate for society to accept specified a extremist reform.
To be conducted radical cutsaccording to the author, A crisis is neededThat will open the door to change. Just as he is delirious on the European horizon. "Cutting spending is easier to sale on behalf of the defence than on behalf of the generalised thought of efficiency," Ganesh emphasises.
A more militarised and little caring Europe would yet become more like the US than ever. According to the author, the full process of transforming Europe from a continent as a guardian to a defence giant would have a clear goal: to accomplish a greater independence from the U.S. Power and survival. "All another priorities are secondary," he said.
Source: “Financial Times”
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