Comparative European economic models: a political and human vision.

Political analysis on the economic situation in the European Union.

On October 15, 2014, the budgets of each of the states that make up the Eurozone were delivered. The economic data presented were (in part) the cause of a crash in the main stock markets around the world. On the other hand, they are a symptom of economic stagnation and a lack of political consensus. of economic stagnation and a major lack of political consensus in Europe (third-quarter GDPin Europe (GDP for the third quarter of 2014 for the euro zone and the European Union are respectively +1% and +1.4%[1]). These data (focused on the deficit and public debt) are ways (better or worse) to consider the good direction or not of the budgetary policies of a member state. The Stability and Growth Pact[2], ratified by the European Council in 1997[3], imposes a roadmap on the accounts of EU member states. This pattern is not an objective way of interpreting reality, but a subjective interpretation of it.

The configuration of the European treaties treaties is largely in the interests of the German state - especially with regard to monetary policy[4].The configuration of the European treaties is largely in the interests of the German state - especially with regard to monetary policy[4]. The imposition of a rigorous policy, "German-style", does not necessarily imply that it will work in another territory with different realities. However, the German model, almost perfect in the imagination of the institutions and member states (and citizens), seems to be faltering lately, or at least its prospects for economic growth[5]. This deflation - of about 0.7% of GDP - leads inexorably to the revitalization of infra-European geopolitics[6].

This is explained by the fact that the economic models of each state are seen as an alternative to the criteria of a discouraged German economy. France is the best positioned state to question the policies of rigorousness, although the European Union has a vote in this contestalthough the European Union has a vote in this contest - the Commission can sanction governments that do not comply with the pact established in 1997[7]. Ultimately, Merkel's Germany Merkel's Germany Germany is forging the toughness - above all in the budgetary field - of the EU, which gives it an important responsibility. The imposition of its economic model or another reconfigures territorial realities with serious consequences.

A conceptual approach of the economic models and hierarchies in the European framework

What then are economic models? On geopolitics, economic models are a territorial strategy of economic order where certain actors try to convince - or impose - on other states a certain vision of the economy and, therefore, of society. Economic strategies are based on a desire to impose control over other states by economic force (and not so much by military force) within a framework of globalization. This rivalry resembles - as we said on another occasion in the article on: The disastrous effects of the Transatlantic Treaty - to what Joseph S. Nye called SoftPower or soft power[8].

From this point of view, states become "economic predators" in order to perpetuate their comparative advantages in the economy. Since, as we have been saying, a model does not adapt in the same way by growing on one's own territory ("endogenous") as imposed by the other ("exogenous"). The "aggressor" state benefits from a significant economic rent if it succeeds in attributing its way of seeing the world to other states, thus guaranteeing, on the upside, its ability to act as a pivot for other states.its ability to act as a central pivot. Thus, under a somewhat reductionist explanation, we are moving towards the creation of center and peripheral (or even semi-peripheral) states. State actors are in line with the pivotal state whose hegemony is sustained by the capacity to obtain more surplus value in the circulation of capital. What Immanuel Wallerstein[9] calls world-economy[10], in this case what would become the capitalist world-economy, resembles the materialization of an economic model above others.

Globalization would be -grossomodo- the crystallization of one or several visions: the hegemonic American vision and that of its subordinate European states -Germany, France and the United Kingdom would be the great standard-bearers. The latter, but more notoriously the Franco-German couple, are vying for the future of the European model, each wanting to leave its signature. Germany sees itself as the epicenter of Europe with a strong subordinate (France).. On the contrary, France sees a Europe led by the Franco-German couple and tries to assert its political power for it[11], but perhaps it does not weigh in the same way (for the moment[12]).

A rivalry around the Franco-German couple

The German economic model comes from a current that appeared in the 1930s called Ordoliberalism or social market economy. This would consist of a space where the state would set a specific order of general rules to apply, then, the principle of competition and free market for businesses. To a greater or lesser extent, most European countries apply this economic model, although it rivals the French model. This economic framework seems to work very well in Germany. So much so that the German state, with a policy based on the export of industrial products with high added value, reinforces its dominant status to the detriment of the other states[13]. It has endeavored to become the factory of Europe (and part of the world). The other European states have been forced to explore other avenues to explore other avenues in view of the German success (the offshoring of European industry has wreaked havoc especially in the southern countries). However, Germany's weight lies in its influence on the statutes and policy of the European monetary system.

On the other side, we are confronted with the French model. This would consist of a much more controlled (politicized) social market economy. In other words, it would be a liberal model where state intervention - greater than in Germany - has guaranteed the country's growth. The state is much more supportive, protectionist and therefore more sensitive to social needs. However, the weight of Germany in the economy is dragging, directly or indirectly, France and all the other countries, to carry out policies of budgetary rigor and market restructuring.

What are the consequences of the lack of European solidarity?

As we have already mentioned, economic models are economic strategies that, in the end, represent the lifeblood of society. The forced austerity in Germany (and Europe) has forced the welfare states, economic models that were deeply rooted in some of the European countries, to break down. The loss of a social model is in force throughout the Europe of Solidarity. En Spain this process is very reigning and, even more so, with the conservative government of Mariano Rajoy who has plunged headlong into the dictates of austerity. The problem, in our opinion, is not to seek GDP growth but to adjust to the needs (health, housing, decent employment...) of the people, the true sovereign.

However, if Germany has succeeded in imposing its model if Germany has succeeded in imposing its model on the other European states, its hegemony remains less clear in view of the political pressure exerted by France (with the support of Italy, which is welcoming the new model). (with the support of Italy, which holds the six-month presidency of the EU Council). So much so that the ECB, the IMF and the EU seem to be swinging towards positions halfway between the two actors. Still, the monolithic German vision subtracts one of the great burdens to relaunch the EU economy again.

Bibliographical references:

• [1] September 5 data in Eurostat.
• [2] On June 17, 1997, the stability and growth pact of the member states was ratified in Amsterdam, whose requirements focused on controlling excessive public deficits (no more than 3% of GDP) and public debt (no more than 60% of GDP). The European Council published on March 22 and 23, 2005 an improvement of the 1997 resolution.
• [3] During the European Council of March 22-23, 2005, the finance ministers reached a political agreement to improve the management of the stability and growth pact ratified in 1997.
• [4] "Économie et Géopolitique", Hérodote. Revue de géographie et géopolitique, La découverte, nº151, 2013, Paris.
• [5] German industrial production fell by 4% this August. In addition, forecasts for the German economy - both by the German government and the IMF - have been considerably lowered (from a forecast of approximately 2% to 1.2% of GDP in 2015). Both economic and geopolitical factors have slowed down the German, European and world economy.
• [6] Geopolitics being understood as the "designation of a conflict, a rivalry of power in a territory involving at least two protagonists" (Yves Lacoste).
• [7] "Brussels asks France for its accounts" ("Bruxelles demande des comptes à la France"), Les Echos, 23/10/14, Paris.
• [8] "The capacity to influence the representations that leaders and populations make of certain norms of behavior or certain political orientations".
• [9] Immanuel Wallerstein is a world-renowned sociologist. He is a research fellow at Yale University, directs the Fernand-Braudel Center for the Study of Economies, Historical Systems and Civilizations at Binghamton University (NY). He is also a researcher associated with the Maison des sciences de l'homme in Paris and has chaired the International Sociological Association.
• [10] "The world-economy is an expression used by most economists to describe, not an integrated system of production, but the commercial relations between states." I. Wallerstein.
• [11] "Économie et Géopolitique", Hérodote. Revue de géographie et géopolitique, La Découverte, nº151, 2013, Paris.
• [12] Several studies point out that Germany's economic weight will decline as its population, already very old, begins to shrink. On the other hand, the high level of health in terms of demographic replacement augurs an increase in the French weight in the European economy.
• [13] "Economy and Geopolitics", Herodotus. Revue de géographie et géopolitique, La découverte, nº151, 2013, Paris.
• [14] http://europa.eu/legislation_summaries/glossary/ex...