The plans that the European Commission has approved under pseudo-environmentalist pretexts are both deindustrialization and reindustrialization. Both projects involve gigantic investments, which are intended to be financed with public money.
The amounts are unprecedented in the history of capitalism, in the order of 650,000 and 1 billion euros per year. To this figure must be added the expenses destined for rearmament, which are superimposed on the above.
Such amounts clash with the European Central Bank’s conjunctural policy because they are inflationary. According to its statutes, the Central Bank’s task could not be simpler: to maintain price stability at an inflation rate of 2 percent over the medium term. It is currently at 2.6 percent, which rises to 2.9 percent if we refer to core inflation.
The green transition is inflationary. The carbon tax will increase the prices of carbon-based goods for consumers, and so will the financing of massive renewable energy production capacities and investments in equipment, machines and other buildings with lower emissions.
In short, decarbonization is only for those who can afford to pay much higher prices.
If the Central Bank does not keep interest rates low, interest rates will rise and with them the cost of the investments needed for decarbonization, whether public or private.Of course, another solution is possible: public financing through tax increases and private investments through a reduction in shareholder remuneration to allocate money to Agenda 2030.
This is an alternative that neither the working class, nor broad social sectors, whose incomes are already largely depleted, can afford. The increase in taxes would end up confronting the vast majority of Europeans with green policies, something that so far remains limited, with exceptions such as the yellow vests or the recent agricultural mobilizations.
Brussels is looking for alternatives. One of them is to reform the statutes of the Central Bank, to increase the inflation target to 3 or 4 percent.The countries of southern Europe would not mind, but those of northern Europe will never admit anything similar.
In a Europe in crisis, the discredit could be transferred from Agenda 2030 to the Central Bank itself and, on the rebound, to the euro.
It is absoulutely VITAL that you spread these articles and share them far and wide!!
There will never be ads, nor paywalls on this website and I do this, delivering articles for free, so please donate if you can afford it!
Donations are NOT neccesary in any way, but ALWAYS appreciated.
You can also check my bitchute, rumble, vidlii channels where I reupload videos with juicy info in them.
Stay up to date on gab, gettr, telegram, twitter and minds!
Our spanish readers can also check the podcast, and watch the odysee channel.
elcolectivodeuno.wordpress.com 