The Bilderberg group will convene in Sitges, Spain, a resort community 30 km from Barcelona, on June 4-7, 2010.
As usual, the
information is supplied by James Tucker and Daniel Estulin who revealed that
this year the issues topping the agenda of the club's meeting will be the
global recession and the approaches to provoking such economic breakdowns
that can help justify the establishment of a full-scale world economic
The idea recurred in the statements made by N. Sarkozy, G. Brown, and the freshly elected European Council President H. Van Rompuy, but - against the backdrop of a relatively harmless phase of the crisis - the activity remained limited to psychological conditioning and no practical steps have been taken.
As Jacques Attali wrote quite reasonably in
his After the Crisis, Europe has no right to demand a reform of the global
financial architecture as long as it can't organize the institutions that
would meet its own needs.
generated chaos is tightly controlled by financial institutions, major
banks, and hedge funds and serves as an efficient mechanism of governance
and social restructuring.
There had to be more serious reasons behind the situation, and to an extent the objectives pursued by those who shaped it can be understood from the statements made by George Soros.
He maintains that the EU owes its
current difficulties to the European (especially German) politicians'
reluctance to move on, that huge problems await Europe unless it starts
developing, and that a kind of a European Monetary Fund helping fight budget
deficit must be created. In other words, Europeans are forced to choose
between the collapse of the Eurozone and governance centralization.
It is also proposed that they should set up a European creditor of a new formation that - while not being linked to Europe's central and investment banks or governments - would guarantee assistance to viable local financial institutions, buy into their assets, and extend loans under specific terms.
Attali further advocates the formation of a European
ministry of finance that would immediately be empowered to hand out loans
from the name of the EU, and the creation of a European Budget Fund with a
mandate to oversee the budgets of the countries whose cumulative dept totals
over 85% of the GDP. He warns that an even severer crisis should be expected
also pledged Euro 250b in the case of need. The money is meant for sovereign
debt bailouts in the Eurozone, a mission which - for the first time in its
entire history - the European central bank will also undertake. Steps
facilitating financial transactions were announced by central banks across
the world including the US Federal Reserve which will urgently inject US
dollars into the European Central Bank as well as into British and Swiss
The options on
the table range from building totally new institutions to - as, for example,
suggested by Attali - using the IMF as an authorized supranational
regulation center run by a G-24 board.
Eurostat data, in 2010
the Eurozone sovereign debt will grow from 77.7% to 83.6% of the GDP.
Moreover, it is widely held in the expert community that the indebtedness
figures for Greece, Portugal, and a number of other EU countries are
unrealistically low and do not reflect the actual proportions of the
The situations in Poland and Slovenia
are even more alarming - in their cases the debt to GDP ratio is 15 and 11
respectively. The corresponding average over the Eurozone is 4.34, and in
the US - 5.
On May 21, the EU finance ministers adopted at a meeting chaired by European Central Bank president Jean-Claude Trichet and European Council President H. Van Rompuy the German plan of much greater budgetary coordination including penalties for states that break the EU budgetary rules. The sanctions will include suspending the voting rights of repeat offenders, withholding the funding for infrastructural development, etc.
It was also proposed to
subject national budgets to EU screening prior to their being debated in
national legislatures. A report will be prepared by June 17 - notably, the
date of the EU summit - outlining a common Eurozone policy. Other, yet more
ambitious projects like full control over Eurozone national budgets by a
triumvirate comprising the European Commission, the European central bank,
and the Euro Group are also discussed.
Invoking the threat of financial collapse, the EU countries serially introduced extremely unpopular austerity regimes with salary and pension freezes for state employees, welfare cuts, increased retirement ages, etc.
The consequences of the measures are hard to gauge considering that Europe
is already facing serious poverty and unemployment problems (the
unemployment has reached 10% of the economically active population and
continues to grow, and at least 80 million people are currently below the