According to a Spanish economist, northern Europeans are fed EU propaganda, saying they must pay more taxes to make sure the economies of their southern members do not collapse.
According to a Spanish economist, This has caused a massive division in the EU. Due to EU propaganda, the Northern Countries believe Southern EU countries are why their tax is so high. They believe the Northern Countries are the only reason the Southern EU countries are still going.
The Spanish economist Stuart Medina Miltimore has hit back, saying that southern EU countries like Italy and Spain have kept the Brussels machine going.
In an interview with the Express, the Spanish economist said: “In reality the net transfers from northern Europe to southern Europe are minuscule.”
“In the end, they’re probably profiting a lot more in net exports to Southern Europe.
“The price tag of their oversized, especially Germany’s, humongous trade surplus, is absolutely obscene – I think it’s almost 8 percent of GDP in some years. Netherlands, Austria, all those countries have huge surpluses.”
“Basically what the European Union has done is allow Northern European countries to be able to capture markets, Italian markets, Spanish markets, Portuguese markets and Greek markets.”
“A good chunk of our industrial fabric was dismantled as a consequence of our entry into the union.”
“Largely, as a condition to enter the European Economic Community, Spain had to shut down a lot of its public companies.”
“And that has caused together with other factors – for example the abandonment of full employment policies in the 80s and the obligation to sustain an exchange rate with the European currency – all those factors and the austerity that was required to enter the European Monetary Union, have led to a massive rise of unemployment in Spain.”
“This has basically been to the benefit of Germany.”
“There was a period when the euro was established in 1999 which led to a real estate bubble in Spain, which produced a lot of economic growth but this was based on credit.”
“That massive real estate bubble was a boom for German exports. And basically it is the Spanish debt which has kept Germans employed for many years.”
“When the bubble burst in 2007 with a global financial crisis, Germany was not willing, and most of the Northern European countries were not willing, to revoke their trade surpluses.”
“And they were not willing to establish any sort of mechanism that would somehow make the system sustainable.”
He continued: “Spain and Italy have been net contributors to the union budget for years, until last year in fact, this is the first year they will be net recipients.”
“So I think the Northern Europeans are being handed out that story probably because it’s in the interest of Northern European governments to put the blame on somebody else, to justify why their living standards are not as good as they should be.”