I was 17 when Philippe Seguin and François Mitterrand clashed over the Maastricht Treaty which was adopted by referendum by the French population in 1992.
When I say the Maastricht Treaty is dead, that’s not quite true.
It is its economic part which is largely dead since the criteria which underlie it are from now on completely forgotten.
For the rest, this treaty which in reality gave birth to the European Union as we know it today, unfortunately remains in force and continues its work of destruction of nations on the altar of the emergence of the United States. from Europe. An old dream of successive generations of Europaths.
Remember the Maastricht criteria!
The convergence criteria (or “Maastricht criteria”) are criteria established in 1991-1993 by the Maastricht Treaty and based on economic indicators that must be observed by member countries of the European Union applying for entry into the European Union. European Economic and Monetary Union, the euro area. Once entered, member countries must continue to meet these criteria, under penalty of warnings and then penalties. Compliance with these criteria is deemed necessary for the success of the Stability and Growth Pact, to avoid the “free rider” phenomena that monetary zones favor.
These criteria were established during the Maastricht Treaty, signed by the members of the European Union on February 7, 1992, as part of the establishment of the European Economic and Monetary Union.
The convergence criteria stipulate an area not to be exceeded:
Price stability: The annual inflation rate of any given Member State must not exceed the average of those of the three Member States with the lowest annual inflation rates by more than 1.5 percentage points.
Public finance situation : Public deficit (State + ODAC + Local authorities + social security) less than 3% of GDP. Public debt (all loans contracted by the State and all public administrations, including social security institutions) less than 60% of GDP.
Exchange rate : Devaluation excluded (measure obsolete for euro zone countries).
Long term interest rate : must not exceed by more than 2 percentage points the average of those of the three Member States with the lowest annual inflation rates.
As much to say to you that with public deficits higher than 10% which is the case for France and public debts ranging from 120% of the GDP for our country to more than 150 for Italy without forgetting the 200% of the GDP for Greece, the so-called Maastricht criteria have not been met for a long time.
What has been happening since 2008?
What has been happening objectively now for a little over 10 years and since the so-called subprime crisis?
Little by little, gradually, insidiously, the Maastricht criteria which gave rise to the Stability Pact are being eaten away. Reduced. Destroyed.
It had already started.
The health crisis and the pandemic have just put an end to this iron rule which had allowed the creation of the euro zone, and led the Germans to agree to abandon their strong currency the Mark.
Today in fact, it is over.
The cicadas won.
The countries of the South have overwhelmed the European institutions and the ECB.
The European Central Bank, by force of circumstances, is condemned to operate in “Yapa’lchoix” mode, to save what may still be.
Only inflation can still save the euro zone, certainly not austerity.
We will undoubtedly take a little more time before formalizing this state of affairs, but it is a global headlong rush.
In the United States, between 1,500 and 2,000 billion are poured into the economy every 6 months.
In Japan, they are ahead …
The English have just resumed their sovereignty in order to be able to manage this period which promises to be difficult for all the major countries as well as possible.
The Stability Pact is dead and buried.
Germany, as virtuous as it is, will be obliged to follow suit because it is global.
It is global because over-indebtedness is global.
These are thoughts around this topic that I am sharing with you in this week’s attic news.
It is already too late, but all is not lost. Prepare yourselves !