Against speculation, the so-called "fiscal compact" could and can do nothing. These are the words of the economist Jean-Paul Fitoussi, professor at the Institute of Political Studies in Paris and at the Luiss University in Rome, since 2000 in the European Parliament as an expert on the Economic and Monetary Affairs Committee.
After hearing from the House Budget Committee, Fitoussi explains that "the European stock exchanges are dancing because Europe has accepted, not explicitly, to place itself under the control of the financial markets and has opened up room for speculation.” Therefore, according to the economist, the results of the French elections have very little to do with this ups and downs in the price lists.
"The markets dance because in this way they earn a lot, where there is volatility speculation earns, so they are just looking for an opportunity to swing: last week it was Spain, this week France, next week it will be Ireland. The problem is that Europe allows it and the fiscal compact hasn't solved the problem”. And in this regard he launches a suggestion: “My advice to Hollande is not to go to Merkel, first go to the other Eurozone countries and make a lobby group. If Hollande goes to Merkel he will be doomed as was Jospin who finally had to sign. If then Germany doesn't accept, let them leave the Euro”, he adds provocatively.
According to Fitoussi, speculation has a free hand vis-à-vis the countries of the Eurozone because the ECB cannot intervene by purchasing securities at auction and we do not have Eurobonds. And he cites the example of Japan: ”Tokyo saw its rating lowered below the level of Botswana, but the effect on the interest rates of its government bonds was zero. This is because – explains Fitoussi – speculation does not attack a country that has a central bank that can buy government bonds'.
And as for Italy, Fitoussi has no doubts about its solidity: “The Italian situation is very sustainable. If we aggregate the private capital account with the public capital account, the figure is 4 times GDP.
