Europeans against freedom
Last Saturday, a few days after Lebanese people had demonstrated for freedom, some 60,000 Europeans were demonstrating in Brussels against more freedom. The target of their protest: the liberalization and deregulation of services, addressed by the European Commission in the so-called "Bolkestein directive". But first, here's a visual impression of this anti-freedom march, with pictures courtesy of the Bruxelles Ma Ville blog.
THE BOLKESTEIN DIRECTIVE AND THE PRINCIPLE OF THE COUNTRY OF ORIGIN
The directive for the liberalization of services was written by Frits Bolkestein, the previous European Commissioner for the Internal Market. According to his directive, European service providers should be able to deliver their services in each European country on the basis of their statute in their country of origin, and based on the rules of their country of origin. Trade unions say that this will lead to "social dumping" practices, as rules in Eastern European countries are often less rigid than in Western Europe. So, they say, Eastern European construction companies would be able to let their low-wage employees work in high-wage countries. Which is simply not true, because labor regulations are not part of the Bolkestein directive.
FRENCH PUBLIC OPINION IS TURNING AGAINST THE NEW EUROPE
The funny thing is that this Bolkestein directive was unanymously approved in January 2004 by the previous "leftist" European Commission lead by Romano Prodi. But now that the new "right-wing, pro free market" commission Barroso has to implement the directive, the left is protesting. In Belgium and Germany, trade unions and antiglobalists are against it. And in France, all of the establishment is against the directive, including French president Jacques Chirac. The issue is causing such havoc in French media, that the French are turning against the proposed European Constitution because of the Bolkestein directive. Most of the French second thoughts are based on half-truths, lies and hysteria. Tonight, Belgian minister of foreign affairs Karel De Gucht explained that France is a very 'etatist' country where Colbertism (strong cooperation between state and corporations) is still alive and well. In fact, the French senate issued an official report that openly pleads for "a European neo-colbertism" to fight delocalization of French and European industries towards low-wage countries.
ESSENTIAL PART OF THE LISBON STRATEGY
The Bolkestein directive is the most vital part of the Lisbon Strategy, the great plan of the European Commission to make Europe the most competitive economy in the world by 2010. While the Lisbon Strategy was issued in 2000, by now it has become clear that the target is impossible to reach by 2010, with or without the Bolkestein directive. But it remains clear that the liberalization of services is the most important tool for working towards the Lisbon Strategy, as 70% of the European economy consists of services.
HAYEK INSTITUTE: "UNSUSTAINABLE SOCIAL PRIVILEGES"
Drieu Godefridi, founder and director of the Brussels-based Hayek Institute, writes:
NOT RETRACTED, BUT TO BE REWRITTEN
At the European summit on Wednesday, heads-of-state and government leaders have not retracted the Bolkestein directive, but they have decided that it will be "rewritten". Changes are that its implementation will be delayed for months if not years. The Financial Times writes:
FLEMISH LIBERALS DIVIDED
The Flemish Liberal Party VLD, which is the most pro free market party in Belgium (though "least anti-free market party" would probably be a more accurate description), is "very satisfied" with the decision to rewrite the Bolkestein directive. "We must fight the risks for social dumping", party president Bart Somers said. "It is our ambition to lift e.g. health services in Lithuania and Polen to a higher level, not to lower the Belgian level of services", he added.
As a member of VLD, I'm disappointed by this insult to the principle of free trade, another example of a center-right politician trying to please the left while being ashamed of his own ideology.
Dewi Van De Vyver, the president of the Young Liberals, is as shocked as I am:
FRENCH XENOPHOBIA
Frits Bolkestein, a Dutch liberal and author of the directive, says it is not exceptional that a directive is rewritten. But he accuses the French of xenophobic feelings towards his person, as the protesters used the slogan "Bolkestein = Frankenstein". "They clearly stressed the fact that my name is not a French name, and they played on the anti-germanic and anti-anglosaxon feelings of the French public", Bolkestein said. He added that the French are feeling that they are not at the center of Europe any more. French is loosing ground as a language within European institutions, and Europe is not following the direction that France had in mind.
BLEAK FUTURE FOR EUROPE
The patient is ill, but he does not like the taste of his medicine. The patient would like to become healthy and strong again. He even dreams of becoming the strongest man in the world by 2010. But, on the other hand, he likes his warm bed, his hot chocolate and his caring nurse, and it's so damn cold outside. The medicine is called "free markets", the warm bed is called "social protection", the hot chocolate is called "state-enforced redistribution of wealth", and the caring nurse is called "welfare state". European growth rates are averaging less than 2% this year, half the U.S. rate. Will Europe be in the top-3 of world economies by 2020? As things are standing now, I don't think so. Anyone wanna bet?
THE BOLKESTEIN DIRECTIVE AND THE PRINCIPLE OF THE COUNTRY OF ORIGIN
The directive for the liberalization of services was written by Frits Bolkestein, the previous European Commissioner for the Internal Market. According to his directive, European service providers should be able to deliver their services in each European country on the basis of their statute in their country of origin, and based on the rules of their country of origin. Trade unions say that this will lead to "social dumping" practices, as rules in Eastern European countries are often less rigid than in Western Europe. So, they say, Eastern European construction companies would be able to let their low-wage employees work in high-wage countries. Which is simply not true, because labor regulations are not part of the Bolkestein directive.
FRENCH PUBLIC OPINION IS TURNING AGAINST THE NEW EUROPE
Barroso, Chirac
ESSENTIAL PART OF THE LISBON STRATEGY
The Bolkestein directive is the most vital part of the Lisbon Strategy, the great plan of the European Commission to make Europe the most competitive economy in the world by 2010. While the Lisbon Strategy was issued in 2000, by now it has become clear that the target is impossible to reach by 2010, with or without the Bolkestein directive. But it remains clear that the liberalization of services is the most important tool for working towards the Lisbon Strategy, as 70% of the European economy consists of services.
HAYEK INSTITUTE: "UNSUSTAINABLE SOCIAL PRIVILEGES"
Drieu Godefridi
There is an element of truth in the sad slogans of this tired nation: The Bolkestein directive poses a direct treath to the crest of social privileges in Western Europe, which is simply unsustainable from an economic viewpoint. The creative forces of competition which will be liberated by the directive, will force Western Europe to purify its legislation, to lower its labor-parasiting taxes, and to diminish the cost of labor. The Bolkestein directive will only accelerate an evolution that can never be stopped by the incantations of Old Europe, an evolution that is called "globalization", i.e. free trade between individuals, wherever they are on the planet.
NOT RETRACTED, BUT TO BE REWRITTEN
At the European summit on Wednesday, heads-of-state and government leaders have not retracted the Bolkestein directive, but they have decided that it will be "rewritten". Changes are that its implementation will be delayed for months if not years. The Financial Times writes:
The dispute over the services directive is a symptom of the political resistance to free market solutions to Europe's woes, particularly in countries such as France and Germany where unemployment is close to 10 percent.
FLEMISH LIBERALS DIVIDED
Dewi Van De Vyver
As a member of VLD, I'm disappointed by this insult to the principle of free trade, another example of a center-right politician trying to please the left while being ashamed of his own ideology.
Dewi Van De Vyver, the president of the Young Liberals, is as shocked as I am:
We urge prime minister Guy Verhofstadt to read the Bolkestein directive again, to dust off his free market principles, and to stop howling with the antiglobalist, protectionist and economically conservative wolves. The risk for social dumping does not exist. The directive, diabolized by trade unions, does not deregulate minimum wages, labor conditions, holiday regulations, nor work hazard, health and safety regulations. For all these crucial aspects, the regulations of the country where the work is carried out will be applicable.
FRENCH XENOPHOBIA
Frits Bolkestein, a Dutch liberal and author of the directive, says it is not exceptional that a directive is rewritten. But he accuses the French of xenophobic feelings towards his person, as the protesters used the slogan "Bolkestein = Frankenstein". "They clearly stressed the fact that my name is not a French name, and they played on the anti-germanic and anti-anglosaxon feelings of the French public", Bolkestein said. He added that the French are feeling that they are not at the center of Europe any more. French is loosing ground as a language within European institutions, and Europe is not following the direction that France had in mind.
BLEAK FUTURE FOR EUROPE
The patient is ill, but he does not like the taste of his medicine. The patient would like to become healthy and strong again. He even dreams of becoming the strongest man in the world by 2010. But, on the other hand, he likes his warm bed, his hot chocolate and his caring nurse, and it's so damn cold outside. The medicine is called "free markets", the warm bed is called "social protection", the hot chocolate is called "state-enforced redistribution of wealth", and the caring nurse is called "welfare state". European growth rates are averaging less than 2% this year, half the U.S. rate. Will Europe be in the top-3 of world economies by 2020? As things are standing now, I don't think so. Anyone wanna bet?
Pieter Cleppe
I fully agree with that comment. Competition among governments is a very good thing, but not when it is originated and directed by a central authority, the EU, which has the decisive power to overturn its own decision and to centralise the whole thing. So be aware of the Bolkenstein directive! It's maybe not about free market, well let's say, the EU is maybe not about free market!
http://eureferend...
""Yes, well the Russians agreed to large-scale "economic reform", on the advice of eg the Harvard Business School, and the results were catastrophic not just in economic but in human terms. It simply is not possible to make a rapid transition from one established system to a completely different and incompatible system without taking casualties during the process, and if the casualty rate gets above a certain level there is usually a counter-revolution.
However my concerns about this Directive are twofold.
First, whatever the British government thinks or says now, the ECJ will inevitably find that it also applies to health services. As with postal services, there are arguments for and against privatisation - into which I will NOT be drawn - but the decisions about our health service should be taken by the British government, not by the EU.
Second, it is absurd to have (say) a clinic operating in this country, but under (say) Hungarian law. Is there going to be a notice at the door, warning potential patients that as they cross the threshold they are entering a zone where English law does not apply, and all contractual disputes will be settled under Hungarian law?
I know that recently the ECJ ruled that even if a contract laid down that it would be governed by the law of a specified Member State it was still permissible for a party to a dispute to get in first in a court
in another Member State.
There could only be one end result of the chaos that would inevitably ensue from service companies claiming to operate abroad under the law of their home Member State - some of which may take on a role similar to that of Liberia for the registration of ships. Eventually it would be agreed that there could be only one law for all the EU.
The real purpose of this Directive is not to "reform the European economy". It is "Europeanisation" masquerading as "liberalisation".
Ardent free marketeers might like to reflect that for all we know the "liberalisation" element may later be reversed, once it has achieved its purpose, and that decision would be out of our hands.
If the EU decided that there would only be a socialistic state-run European Health Service (the "state" being the EU), and no private competition in health services would be allowed anywhere within the EU, then that is exactly what would happen. There would be nothing that the vestigial British government could do about it, whichever party was in office, any more than in 1948 the county councils could prevent the Labour goverment nationalising their county hospitals."" (Denis Cooper)