Eight key proposals for another Europe

17 April 2011 by Eric Toussaint

The crisis has shaken the European Union to its very foundations. Public debt is suffocating several countries that have been badly hit by the financial markets. With the governments currently in office, and the European Commission (EC), European Central Bank Central Bank The establishment which in a given State is in charge of issuing bank notes and controlling the volume of currency and credit. In France, it is the Banque de France which assumes this role under the auspices of the European Central Bank (see ECB) while in the UK it is the Bank of England.

ECB : http://www.bankofengland.co.uk/Pages/home.aspx
European Central Bank
The European Central Bank is a European institution based in Frankfurt, founded in 1998, to which the countries of the Eurozone have transferred their monetary powers. Its official role is to ensure price stability by combating inflation within that Zone. Its three decision-making organs (the Executive Board, the Governing Council and the General Council) are composed of governors of the central banks of the member states and/or recognized specialists. According to its statutes, it is politically ‘independent’ but it is directly influenced by the world of finance.

), and IMF IMF
International Monetary Fund
Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with 17,68% % of the votes has a de facto veto on any change).

The institution is dominated by five countries: the United States (16,74%), Japan (6,23%), Germany (5,81%), France (4,29%) and the UK (4,29%).
The other 183 member countries are divided into groups led by one country. The most important one (6,57% of the votes) is led by Belgium. The least important group of countries (1,55% of the votes) is led by Gabon and brings together African countries.

all aiding and abetting, the financial institutions responsible for the crisis are making lots of money while speculating on government debt Government debt The total outstanding debt of the State, local authorities, publicly owned companies and organs of social security. . Meanwhile, business owners are taking advantage of the situation to launch an offensive against the social and economic rights of the majority.

The reduction of public deficits must be brought about not through cuts in spending for social programs, but through an increase in tax revenue as a result of efficient measures against tax evasion, more taxation on capital, financial transactions, personal wealth, and higher incomes. To reduce public deficits, cuts should be made in arms spending, as well as other expenditures that are socially obnoxious and detrimental to the environment. It is by contrast essential to increase spending on social programs, if only to compensate for the consequences of the economic depression. Beyond this protective position, the current crisis should be seen as an opportunity to break away from the capitalist mindset and achieve a radical change in society. The new logic to be developed must turn away from productivism, take the environment into account, remove all forms of oppression (based on race, gender or other arbitrary criteria), and support universal access to common goods Common goods In economics, common goods are characterized by being collectively owned, as opposed to either privately or publicly owned. In philosophy, the term denotes what is shared by the members of one community, whether a town or indeed all humanity, from a juridical, political or moral standpoint. .

To achieve this goal we must build an anti-crisis front both locally and at the European level so as to bring together enough energy to create a balance Balance End of year statement of a company’s assets (what the company possesses) and liabilities (what it owes). In other words, the assets provide information about how the funds collected by the company have been used; and the liabilities, about the origins of those funds. of power that is favorable to the implementation of radical solutions focusing on social justice and concern for the environment. As early as August 2010, the CADTM drafted eight alternative proposals to the crisis in Europe. [1] The main point is the need to cancel the illegitimate part of the public debt. To this end, the CADTM recommends setting up an audit under citizen control, which should be combined, in some cases, with a unilateral and sovereign suspension of repayment. The aim of the audit is to cancel the illegitimate part of the public debt and to strongly reduce the remainder.

A radical reduction of public debt is necessary but not sufficient in order to get EU countries out of the crisis. It has to be complemented with significant measures in various areas.

1. Auditing public debt to cancel the illegitimate part

A significant part of the public debt in EU countries is illegitimate since it results from a deliberate policy by governments that have decided to systematically favor the moneyed classes to the detriment of other members of society. Tax reductions on higher incomes, personal wealth, and the profits of private corporations have led public authorities to increase the public debt so as to compensate for the drop in government revenues. They have also raised the tax burden on low income households, that is, on the majority of the population. Moreover, the 2007-2008 bail out of the private the financial institutions responsible for the crisis has meant huge spending of public money and a rapid rise of public debt. The decrease in revenues because of the crisis triggered by private financial institutions had to be financed once again by massive borrowing. Such a context clearly shows the illegitimacy of a significant part of the public debt. In a number of countries blackmailed by the financial markets we must add other obvious sources of illegitimacy. From 2008 onward, public money has been borrowed from private banks (and other private financial institutions), which have used the money they get at very low rates from central banks to speculate and compel governments to raise the amounts they pay them. In countries such as Greece, Hungary, Latvia, Romania, and Ireland, IMF loans were granted on conditions that run against the population’s economic and social interests. Worse yet, these conditions again favor banks and other financial institutions. They must therefore be regarded as illegitimate. Finally, in some cases governments have gone against the will of the people: for instance, while in February 2011 a large majority of the Irish voted against parties that had granted gifts to bankers and accepted the conditions imposed by the European Commission and the IMF, the new government coalition has led the same policies as the previous ones. More generally, in many countries the legislative branch of government has gotten marginalized by policies enforced by the executive branch after agreements with the European Commission and the IMF. The executive submits the agreement to Parliament who then has to take it or leave it. In some cases, debates without votes are organized on major issues. The tendency of the executive branch to turn parliament into a rubberstamping assembly is getting stronger.

In such a troublesome situation, knowing as we do that several countries will soon have to face a defaulting scenario for want of cash, and that repaying illegitimate debt is by definition inacceptable, we have to speak out loud and clear in favor of the cancellation of illegitimate debt. The cost of the cancellation must be borne by private financial institutions, i.e. those that are responsible for the crisis.

Countries such as Greece, Ireland, Portugal, and ones in Eastern Europe (or outside the EU, such as Iceland), i.e. countries that are being blackmailed by speculators, the IMF and other bodies such as the European Commission, ought to call for a unilateral moratorium on repayment of the public debt. The proposal is gaining popular support in countries that are most badly hit by the crisis. In Dublin at the end of November 2010, in a telephone survey of some 500 people, 57% of the Irish in the poll favored defaulting rather than receiving emergency aid from the IMF and the EU. Default! say the people, was the headline of the Sunday Independent, the island’s main weekly. The CADTM argues that such a unilateral moratorium must be combined with the auditing of public loans (with citizen participation). The auditing should give the government and public opinion the necessary evidence and arguments to cancel/repudiate the part of the debt that has been found to be illegitimate. International law and the various national laws offer a legal basis for such a unilateral sovereign act of cancellation/repudiation.

Its experience working on the debt question in the South incites the CADTM to warn defaulting countries against insufficient measures such as merely suspending repayment, which can prove counterproductive. What is required is a moratorium without accrual of interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. on over-due loans.

In other countries such as France, the UK or Germany, it may not be imperative to call for a unilateral moratorium during the auditing period. Yet an audit has to be carried out in order to determine the scope of the cancellation/repudiation called for. Should the international economic environment deteriorate further, a suspension of payment may be on the agenda even for countries that thought they could not be blackmailed by private creditors.

Citizen participation is an imperative condition to guarantee that an audit is objective and transparent. The auditing committee must include the various public bodies concerned, experts in auditing public finances, economists, jurists, constitutionalists, and representatives of social movements. This will make it possible to decide on the various responsibilities involved in the indebtedness process and to demand accountability of those responsible, whether at a national or international level. Should the current government not agree to debt auditing, a citizens auditing committee must be set up, without the government’s participation.

In all cases, it is legitimate for private institutions and high-income individuals, who hold debt securities, to bear the burden of the cancellation of illegitimate sovereign debt Sovereign debt Government debts or debts guaranteed by the government. , since they are largely responsible for the crisis, and have also profited from it. This is merely a fair return to more social justice. It is important to create a register of security holders in order to compensate those who have low or middle-range incomes.

If the audit brings up evidence of crimes related to illegitimate debt, their perpetrators must be heavily sentenced to pay compensation and serve prison terms as befits the severity of their transgressions. Public bodies that have contracted illegitimate loans must be held accountable.

As for legitimate debt, creditors should be forced to try and reduce the principal and the interest rates Interest rates When A lends money to B, B repays the amount lent by A (the capital) as well as a supplementary sum known as interest, so that A has an interest in agreeing to this financial operation. The interest is determined by the interest rate, which may be high or low. To take a very simple example: if A borrows 100 million dollars for 10 years at a fixed interest rate of 5%, the first year he will repay a tenth of the capital initially borrowed (10 million dollars) plus 5% of the capital owed, i.e. 5 million dollars, that is a total of 15 million dollars. In the second year, he will again repay 10% of the capital borrowed, but the 5% now only applies to the remaining 90 million dollars still due, i.e. 4.5 million dollars, or a total of 14.5 million dollars. And so on, until the tenth year when he will repay the last 10 million dollars, plus 5% of that remaining 10 million dollars, i.e. 0.5 million dollars, giving a total of 10.5 million dollars. Over 10 years, the total amount repaid will come to 127.5 million dollars. The repayment of the capital is not usually made in equal instalments. In the initial years, the repayment concerns mainly the interest, and the proportion of capital repaid increases over the years. In this case, if repayments are stopped, the capital still due is higher…

The nominal interest rate is the rate at which the loan is contracted. The real interest rate is the nominal rate reduced by the rate of inflation.
, and to postpone maturity. Here again, positive discrimination in favor of small holders of public debt securities should insure that they get paid. Moreover, the amount in the state budget set aside for refunding the debt must be capped depending on the economic conditions, public bodies’ ability to repay, and the irreducible nature of spending on social programs. We must take inspiration from what was done for Germany after WWII. The 1953 London agreement on German external debt (which among other measures reduced the principal of the debt by 62%) stipulated that the debt service Debt service The sum of the interests and the amortization of the capital borrowed. / annual export income ratio could not exceed 5%. [2] We could define a similar ratio: the amount dedicated to repaying the debt cannot exceed 5% of the State’s revenues. We must also define a legal framework so as to avoid a repetition of the crisis that started in 2007-2008, including the prohibition of socializing private debts, an obligation to organize a permanent audit of public debt policies, with citizen participation, the non applicability of statutory limitations to crimes related to illegitimate debt, invalidity of illegitimate debt, and so on.

2. Stop austerity plans, they are unfair and are only making the crisis worse

Governments of European countries have chosen to comply with IMF demands and impose strict austerity policies on their populations, with slashed public spending, including massive layoffs of civil servants and frozen or even reduced salaries for them, reduced access to some vital public services and to social protection, later retirement age. Conversely public corporations have demanded – and received – an increase in their prices, while the cost for getting access to health care and education has risen. Using particularly unfair higher indirect taxes such as sales tax (VAT) is more and more frequent. Public corporations in the sectors open to competition have been massively privatized. The austerity policies implemented have been pushed to levels not seen since World War II. The consequences of the crisis have thus been made much worse by the alleged remedies, the main aim of which is to protect the interests of capital holders. In a nutshell, champagne for the bankers, and peanuts for the workers, pensioners, and unemployed!

But the people are less and less ready to bear the injustice of such reforms, which signify large scale social regression. Those who are being forced to contribute the most to enable governments to pay back creditors are wage earners, the unemployed and low-income households. Meanwhile, women are the most severely affected, since the current organization of patriarchal society and the economy is such that they bear the brunt of the disastrous consequences of make-shift, part-time, and under-paid jobs. They are also directly affected by the deterioration of public social services. Our struggle to impose another mindset must go hand in hand with a struggle for the total respect of women’s rights.

3. Establish real European fiscal justice and a fair redistribution of wealth. Ban transactions with legal and tax havens. Fight against the massive fiscal fraud being committed by the largest and most prosperous corporations.

Since 1980, the rates of direct taxation on the highest incomes and largest corporations have continuously fallen in the European Union. Between 2000 and 2008, the highest personal income tax rate fell by 7 percent, while the highest corporate tax rate dropped by 8.5 percent. These hundreds of billions of euros in tax breaks have been largely dished out to speculators and the richest members of society, who have seen their wealth continue to accumulate.

Major fiscal reform aiming for social justice must be implemented (decreasing the revenues and personal wealth of the richest so that the rest of the planet can have more), and adopted throughout Europe in order to prevent fiscal dumping. [3] The goal is to increase public revenues, in particular via a progressive tax on the revenues of the wealthiest individuals (the marginal rate for those in the highest tax bracket must be raised to 90% [4]), a tax on personal wealth above a certain amount, and a corporate tax. This increase in revenues must be accompanied by a rapid decrease in the price of every day goods and services, such as basic food items, water, electricity, heating, public transport, and school supplies, which can be accomplished via a substantial and targeted decrease in the sales tax (VAT) applied to these vital goods and services. The fiscal policy adopted should also encourage the protection of the environment by applying a dissuasive tax penalizing companies that pollute.

The EU must adopt a tax on financial transactions, particularly on foreign exchange markets, so as to increase government revenues.

Despite their lofty intentions, the G20 G20 The Group of Twenty (G20 or G-20) is a group made up of nineteen countries and the European Union whose ministers, central-bank directors and heads of state meet regularly. It was created in 1999 after the series of financial crises in the 1990s. Its aim is to encourage international consultation on the principle of broadening dialogue in keeping with the growing economic importance of a certain number of countries. Its members are Argentina, Australia, Brazil, Canada, China, France, Germany, Italy, India, Indonesia, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, USA, UK and the European Union (represented by the presidents of the Council and of the European Central Bank). countries have repeatedly refused to deal with legal and tax havens. A simple measure to fight against these tax havens (which drain vital resources needed for the development of people in Northern as well as Southern countries) would consist in adopting a law officially banning all individuals and companies located in a country from making any kind of transaction transiting through a tax haven Tax haven A territory characterized by the following five independent criteria:
(a) opacity (via bank secrecy or another mechanism such as trusts);
(b) low taxes, sometimes as low as zero for non-residents;
(c) easy regulations permitting the creation of front companies and no necessity for these companies to have a real activity on the territory;
(d) lack of cooperation with the inland revenue, customs and/or judicial departments of other countries;
(e) weak or non-existent financial regulation. Switzerland, the City of London and Luxembourg receive the majority of the capital placed in tax havens. Others exist, of course, such as the Cayman Islands, the Channel Islands, Hong Kong and other exotic locations.
, with a fine that would be equivalent to the amount of the forbidden transaction. Ultimately, these financial cesspools must be eliminated, along with the criminal activities, corruption, and white-collar suit and tie delinquency occurring there.

Fiscal fraud drains a considerable amount of resources from the local community and adversely affects employment. Substantial public resources must be allocated to government finance services so they can combat this kind of fraud effectively. The results of their activities must be made public, and the guilty parties must be severely punished.

4. Rein in the financial markets by creating a register of securities holders, and forbidding short sales and speculation in various domains. Create a public European rating agency Rating agency
Rating agencies
Rating agencies, or credit-rating agencies, evaluate creditworthiness. This includes the creditworthiness of corporations, nonprofit organizations and governments, as well as ‘securitized assets’ – which are assets that are bundled together and sold, to investors, as security. Rating agencies assign a letter grade to each bond, which represents an opinion as to the likelihood that the organization will be able to repay both the principal and interest as they become due. Ratings are made on a descending scale: AAA is the highest, then AA, A, BBB, BB, B, etc. A rating of BB or below is considered a ‘junk bond’ because it is likely to default. Many factors go into the assignment of ratings, including the profitability of the organization and its total indebtedness. The three largest credit rating agencies are Moody’s, Standard & Poor’s and Fitch Ratings (FT).

Moody’s : https://www.fitchratings.com/

Worldwide speculation represents several times the amount of wealth produced on the planet. The highly complex nature of this financial engineering makes it totally uncontrollable. The mechanisms it puts into play undermine the real economy. Opaque financial transactions are the rule. To be taxed at the source, the creditors must be first identified. Financial market Financial market The market for long-term capital. It comprises a primary market, where new issues are sold, and a secondary market, where existing securities are traded. Aside from the regulated markets, there are over-the-counter markets which are not required to meet minimum conditions. dictatorships must come to an end! Speculation must also be forbidden in many arenas. Speculation on government bonds, currencies, and food should also be forbidden. [5] Short sales must also be banned [6] and Credit Default Swaps CDS
Credit Default Swaps
Credit Default Swaps are an insurance that a financial company may purchase to protect itself against non payments.
strictly regulated. Over-the-counter derivatives Derivatives A family of financial products that includes mainly options, futures, swaps and their combinations, all related to other assets (shares, bonds, raw materials and commodities, interest rates, indices, etc.) from which they are by nature inseparable—options on shares, futures contracts on an index, etc. Their value depends on and is derived from (thus the name) that of these other assets. There are derivatives involving a firm commitment (currency futures, interest-rate or exchange swaps) and derivatives involving a conditional commitment (options, warrants, etc.). markets must be closed, because they are veritable black holes, not subject to any regulation or surveillance.

Rating agencies must also be seriously reformed and strictly regulated. Far from being instruments for making objective scientific estimations, they have become basic devices structuring neoliberal globalization and have already triggered social catastrophes several times. When a country’s rating is lowered, the interest rates on the loans made to it are increased, which explains why the economic situation in the country concerned further deteriorates. The complacent behavior of speculators greatly exacerbates the difficulties encountered, which will adversely affect common citizens. The submissive attitudes of these rating agencies in their dealings with the North American financial sector, has turned them into a major actor on the international scene, and their responsibility in triggering and worsening crises has not been highlighted enough by the media. The economic stability of European countries has been placed in the hands of these rating agencies with no safeguards, no serious means of controlling them provided by governmental authorities. The only way to get out of this impasse is by creating a public rating agency.

5. Transfer the banks to the public sector with citizen control.

After decades of financial excesses and privatizations, it is high time to transfer the banking sector to the public domain. Governments must recover their capacity to control and frame economic and financial activity. They must also have the instruments needed to make investments and finance public spending by minimizing the need to borrow from private and/or foreign institutions. Banks must be expropriated with no compensation for their owners, and transferred to the public sector where they would be placed under citizen control.
In some cases, the expropriation of private banks would represent a cost for the State because of the debts they have accumulated. This cost would have to be paid for by the banks’ major shareholders. The private corporations, which are shareholders of the banks and often led them to the financial abyss in the first place, while making juicy profits, hold part of their wealth in other sectors of the economy. A levy must be placed on the wealth of these shareholders, so as to avoid making the general public pay for the bank losses. The Irish example is emblematic: the way in which the Irish Allied Bank was nationalized is totally unacceptable, and we must draw appropriate lessons from this very bad example.

6. Re-nationalize the numerous companies and services privatized since 1980.

During past thirty years many public corporations and public services have been privatized. From banks to the heavy industry sector as well as the postal service and telecommunications, energy, and transport, governments worldwide have handed over entire blocks of the economy to the private sector, losing in the bargain any capacity to regulate the economy. These public goods, which are the fruit of collective work, must be returned to the public domain. The idea would be to create new public corporations and to adapt public services to the needs of the people, in particular to respond to climate change issues, with for example the creation of a public service for insulating buildings.

7. Drastically reduce the amount of time people work to create jobs and increase wages and pensions

Redistributing wealth in a different way is the best response to the crisis. The share Share A unit of ownership interest in a corporation or financial asset, representing one part of the total capital stock. Its owner (a shareholder) is entitled to receive an equal distribution of any profits distributed (a dividend) and to attend shareholder meetings. of the wealth produced going to employees has significantly decreased for decades, while the creditors and businesses have increased their profits and as a consequence engaged in more financial speculation. Increasing wages, not only increases people’s well-being, it also makes more means available for social protection and pensions.
By decreasing the amount of time people work without decreasing wages, and by creating new jobs, workers will see an improvement in their quality of life and jobs will be given to those who are looking for one. Drastically decreasing the amount of time people work also offers the possibility of putting into place another pace of life, a different way of living in society that turns its back on the excesses of consumer society. The time saved for leisure activities could be translated into an increased participation of people in their community’s political life, more inter-personal solidarity, and also used for volunteer and artistic activities.

8. For a new, democratic European Union based on solidarity.

Several provisions in the treaties of the European Union, the Euro Zone, and the ECB must be abrogated, such as articles 63 and 125 of the Treaty of Lisbon prohibiting all control of movements of capital and all aid to a State in difficulty. The Stability and Growth Pact must also be abandoned. Furthermore, the present treaties must be replaced by new ones in the framework of a real democratic constitutive process to come up with a people’s solidarity pact for jobs and the environment.

Monetary policy must be completely revised as must the status and practices of the Central European Bank. The inability of the political authorities to oblige the ECB to mint money is a severe handicap. By placing the ECB above the governments and thus the people, the European Union made the disastrous choice of placing human interests below financial interests instead of the contrary.

With many social movements denouncing its statutes as being too rigid and utterly inappropriate, the ECB was forced to change its policy in the midst of the crisis and to modify the role that it had been given. Unfortunately, it agreed to do so for the wrong reasons. It did not mean to take the interests of the people into account, but to preserve those of the creditors. This attitude clearly illustrates that the cards need to be reshuffled and another hand dealt. The ECB must be able to finance States directly when their concern is to reach social and environmental targets that fully meet the fundamental needs of their populations.
Today, extremely diverse economic activities, from investing in the construction of a hospital to a project of pure speculation, are financed in a similar way. The political authorities must at least consider imposing very different costs for each kind of borrowing: low rates should be reserved for investments that are socially just and economically sustainable, while applying very high rates, even prohibitive when the situation demands, for speculative operations which could also be purely and simply prohibited in certain domains (see above).

With a Europe based on solidarity and cooperation it should be possible to get away from the competitive ethos which tends to cause a lowering of standards. The neo-liberal mindset has led to a crisis and has proven to be a failure. It has dragged down social indicators resulting in less social protection, fewer jobs, and fewer public services. The few who have profited from the crisis have done so by trampling on the rights of the others, the majority. The culprits have won; the victims are forced to pay! This logic, which underlies all the founding texts of the European Union, with the Stability and Growth Pact leading the field, has to be demolished. It has lost all credibility. Another Europe, based on cooperation between States and solidarity between peoples, must become the primary objective. To this end, budgetary and fiscal policies must be coordinated, but not standardized, for there are huge disparities between the European economies. Only coordinating them can bring about a solution which will enable everyone to go forward. Far-reaching policies on the European scale, including massive public investment for job creation in essential public services, from local services to sustainable energy, from the battle against climate change to basic social sectors, must be enforced.

The CADTM maintains that this new democratized Europe must strive to establish non negotiable principles. It must uphold and improve social and fiscal justice, make choices that will raise the standard of living of its inhabitants, engage in arms reduction and a radical decrease in military spending (including withdrawing European troops from Afghanistan and leaving NATO NATO
North Atlantic Treaty Organization
NATO ensures US military protection for the Europeans in case of aggression, but above all it gives the USA supremacy over the Western Bloc. Western European countries agreed to place their armed forces within a defence system under US command, and thus recognize the preponderance of the USA. NATO was founded in 1949 in Washington, but became less prominent after the end of the Cold War. In 2002, it had 19 members: Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the UK, the USA, to which were added Greece and Turkey in 1952, the Federal Republic of Germany in 1955 (replaced by Unified Germany in 1990), Spain in 1982, Hungary, Poland and the Czech Republic in 1999.
), choose sustainable energies so as to avoid nuclear power, and refuse genetically modified organisms Genetically Modified Organisms
Living organisms (plant or animal) which have undergone genetic manipulation in order to modify their characteristics, usually to make them resistant to a herbicide or pesticide. In 2000, GMOs were planted over more than 40 million hectares, three quarters of that being soybeans and maize. The main countries involved in this production are the USA, Argentina and Canada. Genetically modified plants are usually produced intensively for cattle fodder for the rich countries. Their existence raises three problems.

- The health problem. Apart from the presence of new genes whose effects are not always known, resistance to a herbicide implies that the producer will be increasing use of the herbicide. GMO products (especially American soybeans) end up gorged with herbicide whose effects on human health are unknown. Furthermore, to incorporate a new gene, it is associated with an antibiotic-resistant gene. Healthy cells are heavily exposed to the herbicide and the whole is cultivated in a solution with this antibiotic so that only the modified cells are conserved.

- The legal problem. GMOs are only being developed on the initiative of big agro-business transnationals like Monsanto, who are after the royalties on related patents. They thrust aggressively forward, forcing their way through legislation that is inadequate to deal with these new issues. Farmers then become dependent on these firms. States protect themselves as best they can, but often go along with the firms, and are completely at a loss when seed thought not to have been tampered with is found to contain GMOs. Thus, genetically modified rape seed was destroyed in the north of France in May 2000 (Advanta Seeds). Genetically modified maize on 2600 ha in the southern French department of Lot et Garonne was not destroyed in June 2000 (Golden Harvest). Taco Bell corn biscuits were withdrawn from distribution in the USA in October 2000 (Aventis). Furthermore, when the European Parliament voted on the recommendation of 12/4/2000, an amendment outlining the producers’ responsibilities was rejected.

- The food problem. GMOs are not needed in the North where there is already a problem of over-production and where a more wholesome, environmentally friendly agriculture needs to be promoted. They are also useless to the South, which cannot afford such expensive seed and the pesticides that go with it, and where it could completely disrupt traditional production. It is clear, as is borne out by the FAO, that hunger in the world is not due to insufficient production.

For more information see Grain’s website : https://www.grain.org/.
(GMO). Furthermore, Europe must resolutely put an end to its “besieged fortress” policy regarding candidates for immigration, so that it can become a partner trusted for its fairness and true solidarity towards the peoples of the South.

Translated by Charles La Via, Christine Pagnoulle and Vicki Briault

Éric Toussaint is doctor in Political Science (University of Liege and University of Paris VIII), president of CADTM-Belgium (Committee for the Abolition of Third World Debt, www.cadtm.org), member of the Scientific Council of ATTAC France and of the International Council of the World Social Forum (Porto Alegre), member of the CAIC Commission for the Integral Audit of the Public Debt (Ecuador), author with Damien Millet of Debt, the IMF, and the World Bank. Sixty Questions, Sixty Answers, Monthly Review Press, New York, 2010. Author of A diagnosis of emerging global crisis and alternatives (2009), 139p.; The World Bank: A Critical Primer (2008); The World Bank: a never-ending coup d’Etat. The hidden agenda of the Washington Consensus (2007), Your Money Your Life - The Tyranny of Global Finance (2005), co-author of Tsunami Aid or Debt Cancellation (2005), The Debt Scam – IMF, World Bank and the Third World Debt (2003), Who owes Who? 50 questions about World Debt (2004), Globalisation: ‘Reality, Resistance & Alternatives’ (2004).


[2See Éric Toussaint, The World Bank: a Critical Primer, Pluto Press, London (2008), Chapter 4.

[3For instance in Ireland, where tax on corporate profit in only 12.5.

[4This 90% rate was imposed on the rich in the United States in the 1930s under Franklin Roosevelt’s presidency.

[5See Éric Toussaint “Getting to the root causes of the food crisis” http://www.cadtm.org/Getting-to-the...

[6Short sales allow traders to speculate on the price of a stock, which they expect will drop, via transactions in which they buy then immediately sell stock they did not own when they ‘shorted’ it. German authorities have forbidden these dubious transactions, whereas French authorities and ones from other countries are opposed to this German ban.

Eric Toussaint

is a historian and political scientist who completed his Ph.D. at the universities of Paris VIII and Liège, is the spokesperson of the CADTM International, and sits on the Scientific Council of ATTAC France.
He is the author of Greece 2015: there was an alternative. London: Resistance Books / IIRE / CADTM, 2020 , Debt System (Haymarket books, Chicago, 2019), Bankocracy (2015); The Life and Crimes of an Exemplary Man (2014); Glance in the Rear View Mirror. Neoliberal Ideology From its Origins to the Present, Haymarket books, Chicago, 2012, etc.
See his bibliography: https://en.wikipedia.org/wiki/%C3%89ric_Toussaint
He co-authored World debt figures 2015 with Pierre Gottiniaux, Daniel Munevar and Antonio Sanabria (2015); and with Damien Millet Debt, the IMF, and the World Bank: Sixty Questions, Sixty Answers, Monthly Review Books, New York, 2010. He was the scientific coordinator of the Greek Truth Commission on Public Debt from April 2015 to November 2015.

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