As French economic experts stress out, Devedjian appointment and forming of a new, temporary governmental institution, is nothing but an attempt of overcoming bureaucrasy dilatation, not a particular crisis team which is invited to take tough decisions. These assumptions are based on a fact that Sarkozy himself was the one who initiated the G20 Summit, global common activities, and, unexpectedly for most of experts, managed to earn British Prime Minister Gordon Brown`s support.
The problem to dynamic Sarkozy seems to be the resistance of German Chancellor Angela Merkel to the EU`s "injection" to the stumbled economy. This needle was to enable 200 billion of euros, which preoccupied most.
Amendments to this proposal recommended by the European Commission specify not more than 1.5 percent of gross domestic product (GDP) on the basis of EU in whole. But Sarkozy was not in doubt, and France has granted 26 billion of euros for the purposes of their companies, while Great Britain decided to take out 23.5 billion. Several mini-summits held by Nicolas Sarkozy, Gordon Brown and the EC president Jose Manuel Baroso followed.
To those who attend these summits one thing seems more than obvious - Angela Merkel`s absence. EU`s Economic Affairs Commissioner Joakim Almunia referred to the EU members (particularly to Germany) which do not participate in common decisions as "skinflint", adding that these countries do not understand the importance of acting together within the EU. This specific opponent block is ruled by Germany, but Holland and Poland are also prominent. These countries fight against decrease of value added taxes and interest rate drastic reduction, even though these measures are considered to be inevitable, while it is the question of time how long it will take for these governments to resist.
In the meanwhile, Western Balkan countries understood their current position quite well, but what seems to be their problem is the fact that without European aid there cannot be any chances to alleviating consequences. Serbian Association of Employers was the first organisation in Serbia suggesting the proposal on new measures.
"We have made a proposal to national government on forming a type of stabilisation fund, as well as the commission which task would be the monitoring of those companies which are threatened by bankruptcy. Only if the insolvency problem endangers workplaces these companies could be saved," explains Stevan Avramovic, the Serbian Association of Employers President.
Mirko Cvetkovic`s cabinet has decided to designate money, to the amount of two billion of euros, needed for aid. Certain circles estimate that it is not enough for resolving every problem, still sufficient for some of them.
That money, however, belongs to no special fund. National government remained doubtful, explaining that the three-fourths of needed money come from foreign-exchange reserves, and that the one-third was covered by the International Monetary Fund. Who manages with this money, under what regulations, whom are these reports send to isn`t a matter of discussion yet.
"We expect our national government to do whatever it takes so that employers would not have the opportunity to dismiss their workers. For example, Value Added tax (VAT) paying in advance should be cancelled, export taxes should also be eliminated temporarily, if companies which place their product into the EU countries want to make profit, trade unions would have to abstain from protesting, and government has to form a Debt Collection Agency. These are the measures that could help us survive following, the critical 2009," says Avramovic.
Serbian Association of Employers, as well as their colleagues from the Croatian Association, has started the initiative on forming a social pact programme. That social contract would have its own operational authority, very much alike French Ministry for Crisis, which would consist of two representatives of the Government, two of the Association of Employers, two pensioners, two from the Institute of Economics, and two from diaspora. This group`s tasks would be the monitoring of economic crisis in Europe and further, while meeting would be held two times in a week, suggesting national government how to surpass negative effects of current crisis.
It is yet unknown whether national government is ready for dealing with this troubles radically. There are only few ready to give up on taxes collecting and not many among them are willing to help those who feed the budget with their money.
But if taking a close glance to how the government works, it appears that deficiency to the amount of two billion euros isn`t fugacious. Moreover, this money slips even now, on the eve of global economic crisis, through minister`s fingers when it is needed like never before.
"For quite some time, we ask government to make reforms within public offices, inspection services, funds, educational and health institutions. During 2007, public institutions have made the deficiency to the amount of 1.38 billion euros. With that money the Corridor 10 could be built entirely for year and a half, owing not even a euro to foreign countries", says the President of the Serbian Association of the Employers.
He stresses that the one-third of Gross Domestic Product comes from the underground economy and as much people work in this invisible sector, which is the additional problem for our budget.
"If we could put these people into the government payment system and into the world of legal business, and if we could prohibit useless help to the public institutions which need each year more and more money that magically disappears, than we could wait the global economy crisis`s struck in calm. Now it is the government`s turn to take unpopular, yet necessary measures", says Stevan Avramovic.
* CEV magazine is an online publication of the Centre for European Values. (Photo: European Communities, 2008)
