US TIGHTEN "ANACONDA NOOSE"

Spain: more than 600 domestic and international flights of Iberia, as well as Air Nostrum, Vueling, Air Europa and EasyJet airlines, have been canceled, the movement of trains and suburban train services has been significantly reduced, doctors provide only emergency care ... Portugal: the biggest local airline TAP has had to cancel about half of its flights, the Lisbon subway is not working, the movement of trains is limited. People are frustrated to the limit, clashes with the police have been registered. Similar reports are coming through from Belgium, France, Germany, Austria, Denmark, the Netherlands and other European countries. No, this is not a plot of a film about the end of the world someone has predicted. It is a story about how 23 countries of Europe marked the Day of Solidarity with mass protests against the policy of reducing social welfare payments and growing taxes. The crisis-stricken Europe has lost several more billion euros as a result of this huge strike. Whereas in the north the strikes have been relatively peaceful and without much drama, the most economically troubled Southern Europe, including Spain, Greece, Portugal and Italy, was hit particularly hard by the crisis which caused massive layoffs in the public sector, unemployment, reduction of welfare payments, salaries and pensions, have seen protests and riots accompanied by violent clashes with the police. Once calm and confident Europeans have risen to defend their economic interests. You bet ... According to predictions, at least 300,000 jobs face the threat of reduction in France until December, and not only in large but also in small and medium-sized enterprises. In the first half of 2013, these may be joined by another 200,000 workers. The situation is even worse in Spain (24 per cent unemployment), not less disturbing in Greece and Portugal. In general, the unemployment rate in the eurozone in September reached a record 11.6 per cent. Particularly high is the level of unemployment among young Europeans (around 22 per cent). Therefore, the strengthening unrest and strikes in view of the imminent threat of job losses could have been expected.

Let's not focus on the details of quelling these demonstrations. Yes, many of us have seen video footage from the cities of Italy, Spain and Greece. But it seems that because of the economic crisis the European institutions, which are usually worried about the subject of "democracy" and "freedom of expression" in the world, have reduced their staff in the very departments that followed the human rights situation in the heart of Europe. It is obvious that such concepts as "democracy", "rule of law", "freedom" and "human rights" are universal for the entire civilized world and are not "European". But ...

There is no sign that the trend towards deepening of the crisis will slow down. According to the latest data, consumer prices in the eurozone on an annualized basis in October 2012 increased by 2.5 per cent, says a recent report of the European statistical agency Eurostat. In addition, according to preliminary data, the eurozone GDP decreased by 0.1 per cent in the third quarter of 2012 compared to the previous quarter. As for inflation across the EU, average consumer prices in October 2012 rose by 2.6 per cent in 27 countries of the EU.

While the workers of 23 countries, as though recalling Marx's famous slogan "Workers of the world, unite", took to the streets, the heads of the same countries met to discuss the EU budget until 2020. But there was no unity in Brussels that was observed on the streets of the bloc. The EU budget until 2020 was one of the key issues discussed by EU leaders at the summit in Brussels which was attended by the heads of state and government 27 countries. The fact that this issue will be the most critical and is likely will remain unresolved was quite obvious. Whereas the Commission advocated a budget of more than a trillion euros, the UK wanted to reduce this amount by almost 200 billion. A compromise reduction by 75 billion was proposed by European Council President Herman Van Rompuy. Shortly before the summit, addressing a conference back at home, British Prime Minister David Cameron had criticized the financial structures of the European Union. "I had to cancel some bonuses, freeze salaries and reduce some budgets by 30 per cent, including a 20 per cent cut in the police budget. But what was the point in making these tough decisions if, when it comes to the EU, its budget should only grow, grow and grow?". According to Reuters, speaking to journalists at the end of the summit, Cameron explained, "Brussels continues to exist as if in a parallel universe. More than 200 people from the Commission staff receive salaries that are superior to my own. The employees who come to Belgium from other EU countries get additional 16 per cent supposedly to support them in a new place and continue to receive this money even if they have lived in Brussels for more than three years." "The idea that the EU institutions do not intend to make a contribution is an insult of taxpayers," he added.

The donors awaiting assistance also criticized the draft budget, though not as sharply as Prime Minister Cameron did. Too deep were contradictions in terms of their outlook for the future between the economies that were comparatively less affected and those who are at the bottom of the crisis. Of course, no deadlines for a budget agreement have been set, but the less time remains for 2014, the less time for the development and adoption of new development programs.

According to observers, this summit has further ratcheted up the split within the EU. It has also intensified concerns about the fate of the Union as a single economic and political union of states. The next summit on budget issues will be held in January-February 2013.

The budget battles in Brussels have once again raised the topic of the effectiveness of such unions of states with heterogeneous economies where "older" and "younger" brothers live "under one roof". The idea of the European Union has been a political program from the very beginning. It was based on a rather shaky and, if we recall the problem of separatism in the EU states themselves, utopian concept of a pan-European identity. It was believed that the institutions of the Union would cultivate interdependence of countries of the continent and a common national identity for all its citizens, while the economic benefits promised by the integration would benefit all Europeans. As long as all went well in Europe and its standing in the rest of the world was high, it seemed that everything was as it was intended. But the economic crisis unearthed not only the budget problems, but also the failure of the idea of a common home, while the Constitutional Treaty widely discussed in the early days of the union was buried even earlier. Again, there was talk that the so-called "common European identity" alienates important elements of national identity and does not offer anything decent in return. According to some political analysts, underlying the economic crisis are not only and not so much the economic circumstances as much as the problems of national identity and ethnic conflicts. Therefore, when the economic crisis forced Brussels to take unprecedented measures towards tightening macroeconomic and fiscal discipline of member-states, they were received, particularly in the south of the continent, not just as economic measures to overcome the crisis, but as an infringement of national interests. It became apparent that as the crisis in the EU deepens, ethnic tensions become more pronounced. A search for the enemies has become a very popular slogan of demonstrators and pickets. There are rising tensions between the Greeks and the Germans. The South is described as a source of the epidemic, so calls are made to take Greece out of the eurozone. The Greeks, in response, call the Germans "Nazis". Nationalist parties and separatist movements in many countries and regions go from strength to strength. Let's recall France where the National Front, which advocates France's withdrawal from the EU, received 18 per cent of the votes in the recent presidential election. Catalonia is on the verge of secession from Spain.

The crisis leads to a weakening of the EU as a geopolitical actor. Obviously, in addition to economic recovery measures, a political action plan is necessary. The population of Europe is becoming increasingly convinced that the EU is a useless and expensive add-on structure, that there is no effective leverage to influence its institutions because the only directly elected body is the European Parliament which does not determine the policy of the bloc. The real power is concentrated in the hands of the European Commission, while fateful decisions are made by political leaders of major countries. The crisis has exposed many of the problems that were previously considered minor or were hushed up. If most conscious Europeans can use the crisis to start a large-scale restructuring of the European Union, then the EU and with it Europe as a whole will get a second wind. Today, the question asked in the headline of The New York Times article, "Has project "Europe" failed?", may seem strange to someone. But as time goes by, the author of this question may once become famous as a clairvoyant? You never know ...