The wounds of the crisis that began in 2008 have not yet been recovered and, again, we are hearing the bells of a new slowdown on all sides of the planet. This is what specialized journals, economic data and some of the economic measures being taken, as the economy is expected to go to an emergency. The Basque economy will certainly also suffer these consequences.

To begin with, Germany, the engine of the economy of our environment, is officially in a crisis situation. To confirm this, it will suffice for the quarterly growth rate to be recorded at the end of this month to be negative and the indicators that have been made so far show that the German economy is included in that line. This situation brings us to the Basque economy, because there are many companies related to the world of self-government among us: let us not forget that Volkswagen and Mercedes have large factories between us, where they have hired many workers directly, adding indirect employment.

Unlike other crises, Germany has, in addition to the usual causes, other crises that need to be added. Indeed, it must be borne in mind that the economic model it established in 2004 has been exhausted: the export of high-quality industrial products (cars, machinery, etc.). ). In this way, it has exported to the European periphery, to China, the United Kingdom and the United States, and its trade balance has had a surplus of up to 7% of GDP. Terrible. In the meantime, the local market has not been sufficiently promoted, because this is what mercantilist policy demonstrates: if a country wants to enrich itself, it will achieve it with positive external balances. That has been precisely Germany’s policy, which in the last decade has profoundly affected the EU’s peripheral economies.

In addition, due to US border taxes or the progress of the Chinese car industry, particularly in the electric car, a negative effect is being produced on the powerful German car industry. In fact, China is making a determined bet on the future electric car to take global leadership. In general, it will be nothing positive for the German car industry, and much worse if the British market is also undermined by the arrival of Brexit.

These economic ties have intensified as the economy has become globalised and in this case the leadership of the world economy has also come into play. The hegemony of the United States, particularly the economic one, is being called into question and China is gradually getting closer to it, while the EU is taking steps backwards, although Germany, of course, is still maintaining its industrial role. We are therefore in a tough conflict between two empires and the Europeans continue to weaken us; the Basques also travel in that chariot.

And then? The wounds of the crude crisis that began in 2008 remain: high unemployment rates, precarious employment, wage gap, housing prices and unbearable rents, cuts in social services (health, education, dependency…), the issue of public pensions, shortages of investment expenditure for research, etc. States have the means to get out of this crisis, but instead of punishing the promoters of the crisis, they have rewarded them. Let us see if we revolutionize this wrong policy on this occasion!