Tag Archives: credit



Most of us grew up in the Soviet Union. While money is not translated at the exchange rate of the National Bank in another currency. Let us remember that, and how much can be bought at the Soviet rubles. Let’s start with one of the ruble.


One ruble a complete meal in the dining room; – A trip of 100 km hitchhiker (penny kilometer); – 33 glasses of lemonade syrup; 50 calls from a payphone; 100 boxes of matches; 5 cups Sundae” or 10 – dairy ice cream; 20 trips in the bus or the subway; 4 loaves of white bread (to 900-1000 grams, but not like now); – 5 liters of milk on tap; 20 going to the movies on the matinee; 2 bottles of good beer (also renting); – 8 packs of cigarettes bad (Pamir); By the end of the summer, you could buy at the market 6 kg or 3 kg of watermelons melons; 5 trips to the barber shop or a bath; The cost of daily beds “savage” in the holiday season in the south.



Three rubles dinner for 5-6 persons in a factory or school cafeteria; – Lunch at the restaurant on one; A good book; – A doll or other toy domestic production; – A bottle of wine normal (such as “Crimean”); Kultpohod the output with the whole family, including a snack; – A pack of imported cigarettes; – The amount of the child in his pocket, where he is terribly jealous of other children.



Five rubles kilogram clippings on the market or 2 pounds of meat at the store; A bottle of vodka (with snacks); Almost monthly rent for a family; Taxi ride in style”; Pounds of very good chocolates.



Ten rubles the amount that occupied until payday, it – which is not ashamed to remind occupant; – The universal currency for various household services; – A huge stick expensive cooperative sausage; – Euch as cars or billiards;



Twenty-five rubles a plane ticket for local airlines (eg, Leningrad – Moscow: 18 rubles); Spree “in full” in the restaurant; Services of expensive prostitutes;



Fifty rubles: Children’s bicycles; Small pension; Scholarship student horoshist; Stay in the union Elbrus 2 weeks – 30 rubles;


Hundred rubles a plane ticket to the south (there and back); Monthly salary of poor engineering graduate student (or rather, a salary of 120 rubles); – A good pension.

The Ukrainian government is preparing a social collapse !

Postmaydannyh dozen months brought a lot of hardship to the Ukrainian people, starting with the Civil War and ending with the fall in living standards, devaluation of hryvnia, wage cuts, rising unemployment, prices and the cost of utilities. But it seems that the difficulties and troubles are only beginning Ukrainians, because they have to live in an open regulation of the International Monetary Fund policies of the government of Ukraine. In the period from 9 to 18 December in Kiev will work his mission. As the head of the Fund in Ukraine Jerome Your mission will begin debate on policy with the Ukrainian authorities in the context of Fund-supported economic reform program.” Cabinet prepared for the meeting.

* * *

Appointing a member of the government ministers foreigners Kiev went even further Georgia and the Baltic countries, known for their voluntary status of the colonies of the West. If these countries to the higher public authorities were only representatives of the title, as they say they have, nation, though with foreign citizenship, among Kiev “Varyag” Ukrainian only one widely publicized successful businesswomanN.Yaresko, became minister Finance of Ukraine. The official reason invitation of foreign ministers was the fight against corruption and reform, supposedly brings Ukraine closer to European standards.

What is the nature of these reforms, it is clear from the proposals for budget cuts that are made in the Cabinet N.Yaresko. Exactly how and warned at the time the opponentsEuromaidan European integration will be at the expense of ordinary citizens of Ukraine. First of all, the Ukrainians expect the abolition of the constitutional provisions on free education and healthcare, as well as reducing the period of compulsory education for children in schools from 11 to 9 years. Finance Minister referred to the European experience, where compulsory education lasts up to 15-16 years. The benefit is not applied experience of Georgia, where secondary education ends at 12 years. Canceled and regulations prohibiting reduce the number of medical and educational institutions, as well as provisions for mandatory budget financing of health and education in the amount of not less than 10% of national income. But the food in hospitals and schools will be paid, as well as training in children’s and youth sports schools.

Students will be deprived of scholarships and the right to free travel with students and teaching staff, and teachers at the same time expects an increase in load. Will be eliminated indexation scholarships, which according to the new requirements of the Ministry of Finance will receive only persons with disabilities and students from low-income families, and the education sector will lose additional payments for scientific degrees and titles.

A lot of surprises awaits Chernobyl. The government plans to cancel the zone of increased radiation monitoring. Themselves as people affected by the Chernobyl disaster, will lose the right to spa treatment, increased scholarships, compensation and benefits, related to category 4, the monthly payments to families with children, extra pay for work in contaminated areas and compensation for lost property.

Abolish and payment deportees financial assistance for the completion of individual construction, increasing seniority for the purpose of pensions, preferential drug supply and compensation value lost due to the deportation of buildings and other property. This concerns, first of all, Crimean Tatars, who left the territory of Crimea, wishing to stay in Ukraine. Rewarded for showing patriotism, nothing to say.

Cease support of public organizations, and payments of cash rewards athletes halved.

* * *

Significant deterioration expects pensioners. Retirement age for women will be increased to 10 years for men for 5 years, and the experience necessary to obtain the retirement pension will increase by 7 years. When the permanent reduction of production and the fall of the economy, which entails a rise in unemployment, to get such experience would be very difficult. In order to “social justice” will freeze the size of the average wage for the calculation of pensions at the level of 2014 to pensions allowances to children of war will now be determined by the Cabinet of Ministers of Ukraine, while they themselves do not indexed pensions would be “to stabilize the economy of Ukraine.” Another unpleasant surprise. From now on pensions will be recalculated using the percentage of the amount listed in the Pension Fund contributions rather than from wages, which significantly reduce the amount of accrued pensions, because of inflation, pension contributions in the 1990s and 2010s – a “two huge difference “.

Not the fact that the existing pensions will remain even for those who are already receiving pension payments. In the quest to minimize the length of service and reduce the size of government pensions is studying “bestexperience of the Baltic states. The delegation of the Ministry of Social Policy and the Pension Fund visited Lithuania, where the parties discussed the possibility of social security pensions to count the people who pay the pension for the experience gained in Lithuania and Ukraine. This is a new principle of counting the Soviet time, according to which each state would have calculated the pension and paid to have it only for the acquired experience in it. In Lithuania, when calculating pensions in the first place is considered to be work experience since 1990, and the experience in the Soviet period is taken into account with a much lower ratio, because then the people working for the occupiers.” Given the rhetoric of the Kiev regime, a similar solution can accept and Kiev.

Pensioners will lose the right to free travel, as well as benefits for housing and communal services, the acquisition of solid fuel, gas and telecommunications services. Targeted financial assistance in these cases is provided only for 6 million. Poorest pensioners. Stops and the action of a state pilot project on the regulation of prices for medicines for the treatment of individuals with hypertension. Naturally, it is more likely to hit it on pensioners, depriving them of the possibility of acquiring at a low price of essential drugs.

* * *

However, the sick, as well as to give birth to children in the new “Europeanized” Ukraine can not be anyone. Payouts for sick leave will be reduced from 60-100% of the average wage up to 45-80%. Trimming payments for temporary incapacity, the Minister refers to the AmericanEuropean experience, according to which workers in France and Italy the first 20 days of illness receive 50% of salary, and in the following days, 70%, and Slovakia, for example, only 25% and 55% .

Planned reduction Insurance Fund of accidents and occupational diseases. From now on, the size of payments to victims at work or members of their families shall not exceed 100 times the minimum wage and receive compensation for moral damage is impossible.

IMF demands deprive the majority of single mothers the right to receive child support, and assistance for child birth will be given only with the material conditions of the family. Parents also have to forget about state funding rehabilitation of children in the camps, free children’s and youth schools, Christmas gifts. Themselves improving facilities and spa businesses are removed from the allowance.”

* * *

But that’s not all. Every Ukrainian waiting for a new tax system, the introduction of requirements which are annexed to the Association Agreement with the EU. Now, citizens will pay 30% of the purchase of expensive goods, if they can not prove the origin of income. Under the new law, which takes effect from 1 January 2015, any purchase of goods worth more than 10 times the minimum wage, ie, 12 810 UAH., Can be done only by bank transfer with a passport and an identification code. Tax authorities will get the right to charge the amount of the tax, as well as acquire the right to seize the property of physical persons and to bring the tax police for the document verification of income and expenditure of the Ukrainians.

Thus, the income tax rate unconfirmed far exceeds the amount of tax that is paid from the proceeds confirmed. Under the tax rate will fall to discriminatory and currency transfer people working abroad and remit money to their families. In addition to numerous opportunities to abuse and corruption, the negative effect of such “European” measures extended to sales in the car market, real estate, household appliances and other goods of high value, and so going through hard times. That, in turn, will lead to a reduction in income entrepreneurs and a further reduction in the tax base.

* * *

What consequences coup and Association Agreement with the EU will be exactly as it was known long before the call to enter the M.Nayema maidan. But Sweet propagandists deceived Ukrainians do not heed the many warnings. The collapse of the economic and social development there, as well as scattered protests. While scattered.

To cure the disease, it is necessary to understand its cause. And the reason is the thoughtless destruction of the economy in favor of the provisions of the colonial association agreement, with no prospect of joining the EU, as was repeatedly told by representatives of the European Union. The upcoming fight ruined anti-human henchmen reforms Foreign population should finally focus not on consequences, and causes.

Generational theory: the world is approaching the tip of another global crisis !

 Generatsioonide teooria: maailm läheneb järjekordse globaalse kriisi tipule

Sorry,Google translation !

Authors William Strauss and Neil Howe has become known for his theory in terms of generations, the mood of the population of certain repetitive cycles. Comparing the history of the theory of these cycles can be noted that the US and the rest of the developed world is increasingly growing in the middle of the global crisis, which reaches a dangerous peak in about fifteen years.
In the book The Fourth Turningwrote the authors of the crisis prompted by the amount of precipitation may be something quite ordinary, such as elections or halvaendelist as the economy crashed. This, however, leads to spark a chain reaction in which the basic elements (debt, the disappearance of the middle class, global unrest) connection and lead society to the brink of rupture.
fourth Generatsioonide teooria: maailm läheneb järjekordse globaalse kriisi tipule
Masse led by an invisible government

Strauss and Howe said that the world is a major problem is that those in power to think linearly, making decisions based on their own interests, but in the belief that their actions do not have consequences and that their position does not invalidate anything. In fact, the history and the people running the mood in circular cycles, forming a pattern of a certain regularity. Those who have not taken the time to examine what the consequences of this behavior led, are now struggling with understanding the changes.

Linearly thinkers are accustomed to human advancement can be controlled by various measures, which are described by Edward Bernaysi book “Propaganda”. Namely, the organized habits and opinions of the people conscious and intelligent manipulation of an important element in democratic society. Those who run this mechanism, constitute an invisible government which actually prevails throughout the country. Prevail over the people and their opinions and shape the tastes of the people whom they themselves have never heard of, but who understand the mental processes and social patterns of the masses. This type of control is, however, important to keep a large group of people working together as a functional society.

History repeats itself, the 80-year cycle

However, now come to a new level of cycling history, with the last 70 years, the plan will be worked cracked. Through the media lying, cheating, propaganda transmission, easily available credit, the so-called cheap oil, endless commercial expansion, effortless marketing, ongoing war, the banks and large corporations, elected politicians, high-class in favor of the tax system, and lobbying by the staff of the oligarchs benefit of written laws all of these have been created check the commoners and enrich the modern aristocracy, at least for the 2008 economic crisis. Linear thinkers in government, commerce, banking and the media confirm straightforward triumph of progress, while allowing recovery from the crisis, but in reality, they deliberately ignore the evidence of the history of the situation from a different evolution because they recognize how vulnerable their positions of power.

StraussHowe theory is that history repeats itself in cycles of about 80 years a new crisis comes about 60 years after the previous approach, the crisis peak occurs around 80 years after the last peak of the crisis. Each such a turning point, however, swept away the last of the existing social order. According to this theory, the US kriisitsüklid occurred as follows: first crisis was the American War of Independence (1775-1794 took place, was the peak of the crisis year of 1781), secondly, the US Civil War (from 1861 to 1865, the peak year 1863); thirdly, the Great Depression and World War II (1929-1946 , culminated in 1944), and the fourth global economic crisis (2008 to about 2029, presumably peak of 2025).

Misleading the People’s total

In September 2008, the global economic crisis that started two decades, probably noted the length of the episode begins, whose harsh conditions become progressively worse, the closer we come to the tip of the crisis. This time, most of those in power are trying to implement all kinds of fiscal measures, valeinformeerimise organizing campaigns to keep the attention of the people dispersed and confused houses. Already have managed to convince a large part of the public at 0% interest rates, while the addition of 1 trillion dollars (per year), the already large national debt of the United States, allowing the Federal Reserve to buy Wall Street 3 trillion dollars in debt. It has, however, created a high level of inflation, energy, food, health care and student areas and the real wage decline. All of these changes are advertised as the necessary steps to normalize the situation, but in fact serve only benefit from them the most affluent.

The current state of the US economic, financial, political and legal system indicates a malfunction and does not remember a strong structure to be working properly. This fact, however, masked, and the crowd’s attention is diverted humblest problems – as long as that is not noticed how the state vaesub corporations and bankers skeemitamiste through.

Those in power have no way to sell their arguments on the development, even if the enormous amount of evidence suggests the opposite. In order given to the public’s attention to other issues such as the massacres between the parties nääklused and the constant threat of terrorism in the unseen. A large part of the population is not interested even in these issues and happy to hold it is sufficient mass culture – different contents empty televised fancy celebrity”, independent thinking and discussing foreign films cinema, an obsession with social media, the importance of rapid and short-term rewarding for fast food, etc. The world is filled with trivial problems, unintelligent käpiknukkude, clock propaganda and mindless consumption.

The problems get worse in the world

All of these measures to calm the crowd, however, at some point begin to crack. History repetition of cycles can not be stopped – the people will wake up and demand change that is reshaping the current social and economic environment.

Strauss and Howe wrote his theory in 1997, based on centuries of generations, based on the analysis of non-events, but the mood of crisis in generations, the basic elements. Even before the 2008 economic crisis in the beginning, it was clear that these basic elements – the debt, the disappearance of the middle class, and global unrest and there were ägenemas. Mass media tend to ignore these problems, showing them smaller than they actually are, but if you do a bit of research, it is clear that the problems get worse. Are struggling with debt in the United States, China and several European Union countries, trying to cope with the ever-growing credit debt, student loans, housing bubbles and oil prices.

The disappearance of the middle class does not come as a surprise, given that unemployment is a major problem in the developed countries, and more than 50% of the world’s assets is only 1% of people in. The US is a major problem in the militarization of local police stations, officials preparing for massive unrest, which alienates communities of their rulers, and the so-called defenders. Global anxiety are good examples of Hong Kong, the Middle East and held in Ukraine, as well as the direction of Japan’s more aggressive foreign policy.

Propaganda will not be able to change the course of history

Propaganda can be formed opinions, but can not change the course of history or facts. US national debt has reached a record 17.5 trillion, an increase of 2 billion a day. Consumer debt has risen to new heights, reaching 3.2 trillion. Global debt level exceeds 230 trillion dollars, accounting for 313% of the global GDP. Most of the focus of launching huge corporations earn profits. If countries are trying to solve their debt problems, allowing bankers, politicians and government bureaucrats to determine more debt, reducing interest rates to zero and to enrich the oligarchs, it all ends in disaster. People suffering must be interrupted at some point, and this may occur if the crisis worsens and people are discovering how their assets, hopes and dreams are destroyed.

Given the high percentage of the population is unemployed or working in low-paying part-time job, it is easy to understand how you can grow discontent with the current system. This is how the situation is managed anti meeleavaldamisega, 2011, showed us the Occupy Wall Street protests. Instead, in order to initiate a dialogue with the protesters, the search for solutions that would help ease the situation and take account of their voice, instead of protesters began to oppress the help of the police forces. At the same time it was shown in the media as protesters näotuid, riotously vain young people who just want to cause chaos. In the later stages of the mass media of the United States came into force at the Occupy protests in complete silence – Contribute to the fact that if they do not talk about, it is believed that no protest is taking place, and the whole business will sink into oblivion.

Fight terror waged by the people behind the mask luuratakse

In addition to public voting irregularities Edward Snowden revelations have also shown that the government does not respect people’s right to privacy, at least not if they can justify the violation of privacy, national security issues. If real, these alleged threats to people is, it let everyone decide on their own, but it is certain that the alleged terrorist threat to fight under the guise of a militarized local police forces to monitor citizens’ reluctance to come into, the spread of ideas and potential leaders of the protest.

Global unrest has reached a new level when you look at Brazil, Mexico, Hong Kong, Egypt, Spain, Greece, France and Turkey jerkily demonstrations. It is also lokkamas violence in Ukraine, Iraq and Syria. A number of armed conflicts can be blamed on the decisions of the US armed with various dictators who were useful to them at some point. There are also problems former CIA plans that have undermined the influence of various democratically elected governments. Rampant violence, however, reap the benefits of the war industry and banks can be enormous income from the sale of weapons of war will be financed through borrowing. Contributing to the war is therefore practically equal to the national debt slavery arms and dependence.

What is not discussed in the mass media

The mass media do not talk about how the United States has historically been an armed terrorists who are killing in Syria now massively both soldiers and civilians. It also ignores the fact that, under the reign of Hussein’s Iraq was a modern, stable, non-religious, the oil-producing country, which was not of Al Qaeda or crazily violence. All that changed when the US invaded a sovereign state valeettekäänetel, wasted 1 trillion dollars in state assets, killed more than 100,000 Iraqis and left tallermaaks religious violence in Iraq. Also, do not talk about how the Libya deposed former dictator auxillary leaving the country into chaos and civil war.

The world has reached a point where the heads of the various decisions have an extremely sensitive topics (debt, the disappearance of the middle class, and global anxiety) to high pressure. If the crisis worsens and reaches its peak, the world can be thrown into chaos, which hopefully will not be completed using a nuclear missile of a button. Sooner or later, the debt bubble burst in the world, which leads to the property, labor, rights, and loss of confidence. This process is triggered by the massive civil unrest, which has been quietly preparing for the years of decline of the middle class and the destruction of the current structure of society.

Where in the world are exacerbated by resource wars, religious extremism and the spread of nationalism, the global war becomes an increasing probability. Where would our world and society at the heart of this crisis is moving, it is not yet certain. This could result in a crash if the progress, but it is certain that cooperation, sharing of responsibility, bold positions of peace and co-existence, and inspired leaders are essential to survive the upcoming challenges.

Sources: The Burning Platform (longer article in English, we recommend you read!), Wikipedia.

Aeg ärgata ! / Wake Up Call !

The Spring Cleaning Government.

Enough time has passed since Petro Poroshenko’s inauguration for it to become clear: Arseniy Yatseniuk will remain at his post of Prime Minister.

“Why depose him? He is in his place!” Stated one of the high officials of the President’s Administration not long before the change of government.

And really, it does seem that Arseniy Yarseniuk is in his rightful place.

The current government cannot be compared to the previous one.

It is working under the conditions, in which Ukraine has lost part of its territory and is in the state of military conflict. This conflict is being heated increasingly by the country’s once-main economical partner – Russia.

The latest “friendly” move of the neighbouring state is the demand that Ukraine pay a huge political price for gas, which has resulted in the shutdown of the pipeline and mutual plaints to the Stockholm court.

Taking into account all the events and the difference in weight categories of the two states, Ukraine will have to face difficulties. When evaluating the work of the government, the influence of external factors cannot be ignored.

They are no longer the ghostly “predecessors,” that Mykola Azarov told fairytales about several years ago. War, criminals in the east and the “help of Russians” are the real reason why economical development is stagnating.

All big companies have suspended their investment programs. Foreigners only come to Ukraine if they have mental issues. The economy “deflates” unless it invests in expansion. Which is what is happening essentially.

International financial organisations have understood this since the very beginning. They allowed for the fall of the Ukrainian GDP in 2014-2015 and this is partially why they are so generous in providing financial aid. They demand even more actively for the government to make real changes in the mechanisms of state government.

For the “backbone” of the economy to have been updated and ready for strong growth on a more transparent basis at the moment when the war is over. In other words, they are demanding Georgia of Ukraine. How to evaluate the government’s work in this light?

On one hand, Yatseniuk’s Cabinet of Ministers has done a great job. Under the conditions when the central government in Ukraine was falling apart rapidly, he managed to gather all the powers back where they belonged.

Yes, this happened not as forcibly and assertively as we would want. Yes, the government by itself turned out to be soft and unprepared for such a situation. The vertical of the President’s Administration, as well as the vertical of the Oblast State Administration heads, especially Igor Kolomoyskiy’s line in Dnipropetrovsk oblast, as well as some other things, helped a great deal.

The Cabinet of Ministers conducted more talks with international investors and established the work of mechanisms which simply have to work.

On the other hand, the government has not yet shown any special achievement. They just work a lot in order to restore order in the economy. However there have been no reforms yet.

This looks like spring cleaning, but this is not renovation, and it is definitely not re-planning or construction. Yatseniuk’s government is the spring cleaning government.

A good example is the functioning of the most corrupt and wealthy Ministry – Ministry of Revenues. With Igor Bilous, Volodymyr Khomenko and Vitaliy Naumenko’s arrival, the tax service and customs have not changed one bit.

The “family vertical” and “state program” disappeared – the cash-in through platforms close to the government with the payment of part of the funds to the budget. However numerous mass cashing centres have emerged. Taxes are still being gathered from companies in advanced, they are being pressured with checks, and they have to agree regarding the return of the VAT in advance.

Later Naumenko was deposed and replaced with the reliable Anatoliy Makarenko. The formal grounds for this could have been the reign of contraband at the customs.

A similar state of affairs is in other spheres of state government. Economical Pravda addressed Prime Minister Arseniy Yatseniuk with questions as to how he evaluates his own work. The head of the government preferred not to answer.

On EP’s petition, experts have analysed the top-10 bills that were passed by the current government. The actions of the Cabinet of Ministers themselves were analysed by senior economist of “CASE Ukraine” Volodymyr Dubrovskiy.

Top-10 bills of Arseniy Yatseniuk’s government

With Arseniy Yatseniuk’s assuming his post as Prime Minister, the Verkhovna Rada has passed ten bills authored by the new government.

1. The law regarding amendments to the 2014 state budget.

The document increased the financing of the so-called Reserve Fund by 6,9 billion UAH. All of this was presented as additional funds for the army. Really, on March 23rd, the Cabinet of Ministers made the decision to give 1,9 billion UAH, on April 17th, another 5 billion were sent to cover the needs of the army.

Additional spendings on the army, million UAH:

Ministry of Defence – 4 588

National Guard – 2 180

State Border Service – 136

Total – 6 904

They are obliged to make a report regarding the usage of all funds until July 15th.

2. Regarding the amendments to the law “Regarding the bases of social protection of homeless persons and unattended children” and “Regarding employment of the population.”

This bill made the life of the refugees coming to Ukraine slightly easier. They were freed from paying for the work certificate in Ukraine.

3. Regarding amendments to the law regarding the state budget 2014.

A scandalous but necessary document which decreased some expenses. Thus, the expenditures of the budget were decreased by 5,5%. Perhaps not too much, taking into account the colossal spendings and corruption during state fund distribution.

All mentions regarding the raising of the life minimum were eliminated from the budget project, consequently, those regarding minimal pensions. In general, the raise proposed by the former government were not too high – just 6,8%. The government decided to say no even to such insignificant increase.

The expenditures on medicine were lowered by 13% – twice as much as the budget average. The program of purchase of ambulance vehicles was completely removed, programs of tuberculosis treatment and that of children with paralysis were cut by half.

Meanwhile the government practically did not touch the expenses from its pocket fund – the budget line “Capital expenses distributed by the government.” In 2013 1,1 billion UAH were spent on these amorphous needs. In 2014 Yatseniuk’s government left these expenses at a much higher level – 2,4 billion UAH.

What capital expenses are more important than the children’s health is unknown.

4. Regarding the prevention of financial catastrophe and creation of grounds for economical growth in Ukraine.

The most scandalous and voluminous bill on over 200 pages, for the examination of which the Cabinet of Ministers gave several hours to the Parliament before voting.

For the most part, the government significantly altered tax legislation, having increased taxes as has been predicted.

The biggest import to the budget – 6-8 billion UAH was brought by the return of the VAT on grain export, which means the implementation of export customs taxes.

The topic of returning VAT on grain export is controversial. The idea of the government was supported by foreign grain traders which do not grow harvest. Those who work on land are against.

First the Cabinet of Ministers proposed not to return the VAT for grain traders for two years, until 2016, but under the pressure from Parliament members this term was decreased to nine months, until October 1st of 2014.

Traditionally, excise taxes were increased: on cigarettes, vodka and wine – by 25%, on beer – by 42%. Why beer has become so unwelcome, the government did not explain. It is known that the vodka producers have been trying to increase the beer excise through the Parliament for a long time to make their product more attractive.

The most problems emerged out of the implementation of the VAT on medicine.

The government hastily made a simple juridical mistake which led to the suspension of import of medicines to Ukraine. The result was a deficit of medicine and huge price increase, which surpassed the devaluation and the infamous 7% VAT.

The pharmacies will probably spend a long time recovering from this mistake, but the prices on medicine will decrease a little in time.

The Cabinet of Ministers also established a universal amount of help upon childbirth – 41 280 UAH. Earlier, for the birth of the first child, 30 960 UAH were given, second – 61 920 UAH, third and more – 123 840 UAH.

The government decreased pensions for former Cabinet of Ministers and Parliament members by 13%, so on average from 15 thousand UAH to 13 thousand. It is not too big of a sacrifice, perhaps, taking into account the fortunes of former MP’s and ministers.

5. Regarding state purchases.

A completely new draft of the law regarding state purchases has been long-expected. Overall since 2008 up until now, 1 377 billion UAH have gone through state purchases!

The new law was passed with a fight with a minimal majority – 226 votes.

The document decreased the list of goods covered by it by four times, allowed activists to be present at tenders and film them, enforced obligations regarding publication of tender results.

Overall, as the Anti-Corruption Centre noted, the new draft of the law may prevent the stealing of 70 billion UAH annually.

6. Regarding amendement to some laws regarding provision of information about state registration of rights and their weight from the State Register of Rights to Immovable Assets. 

The new draft of article 46-1 of the law “Regarding notaries” contains only stylistic changes and restructures the description of the norm of acting legislation. The amendments to article 28 of the law “Regarding state registration of rights on immovable assets and their consequences” explain details.

7. Regarding amendments to the Tax Code and some other legislative acts regarding the elimination of individual contradictions of legislative norms. 

This law corrected the juridical mistake made by the government when implementing the 7% VAT on medicine.

8. Law regarding amendments to the Tax Code.

After the passing of the law, it became more difficult for Ukrainians to buy expensive goods from foreign Internet stores, as packages costing over 150 Euro will have to go through customs (before it was over 300 Euros).

It is unclear how many Ukrainians will be affected by this norm. It is possible that some small machinery and accessories will become more expensive, but this is not too socially significant.

9. Regarding the ratification of the protocol regarding amendments to the agreement between the government of Ukraine and the government of the Republic of Moldova regarding railway transport. 

The act ratified the agreement between Moldova and Ukraine signed on November 12th, 2013. It will simplify the procedures that have to do with railway transportation.

10. Regarding amendments to article 6 of the law “Regarding the status of veterans of war, the guarantees of their social protection” regarding the participants of military action which participated in the anti-terrorist operation. 

The bill grants the status of participants of military action to legal law enforcement formations which “protected the sovereignty and territorial integrity of Ukraine and participated in the anti-terrorist operation.

The people that are protecting the country from terrorists will receive the following subsidies: 75% discount on utility services, free city public transportation, free medicine, the right to additional holidays, the right to receive accommodation in case of injury, annual bonus from the government.

We have to hope that the government will comply with all obligations taken up before the protectors of the motherland.

Source: Epravda

Translated by Mariya Shcherbinina

Is joining the European Union, Estonia has made ​​life better or worse?

This year marks the tenth anniversary of Estonia‘s accession to NATO and the European Union, and therefore, we will explore the views of readers already a decade of life in the European Union, the Estonian.

Dear reader, let me know what you think of the advantages and disadvantages of joining. Does life have gotten better or worse? Give examples of what is good and which is bad. How many lives would be different from when Estonia would not be a member of the European Union.

Comment Order:

Toomas Hendrik Ilves stated today that the EU is not somewhere in Brussels, We‘re EL.Jah, he has the right but this whole string of slogans äraleierdatud our lives better just will not do.
Years ago, of course, had a different slogans: The Soviet Union is not only in Moscow, Soviet Union, we are all together in our Do not like????
And how long was being a blessing to when we all work together we got to say, NOT FINALLY Russian power, no one’s a foreign power, we are free???
And those who are in bondage to sell us a new, does not deserve any respect.
ACTUALLY THE REPUBLIC OF ESTONIA ceased to exist at that moment as we exchange her crown for foreign capital VASTU.Vabatahtlikult seekord.Nii that in the future we can no longer not in any way suggest that we okupeeriti.Meie their elected representatives sold us out.

I have personally gone to the life and increases mõõnadega.Tänaseks is my life gone paremaks.Ma think that if Ireland had not taken ELiitu it would be even worse in life, but yes as an example in Switzerland and Norway, you may have also gone to a better life, but do as well as Norway and Switzerland?

anonymous commentators:

05/01/2014 12:24
Only the CIS is the best!
Long live the Edgar and the euro-skeptics!

, together with the improved
05/01/2014 12:37
What’s good, it’s expensive. Better, but more expensive.

05/01/2014 12:50
Certainly the Estonian life changed for the better ! But õinud TAA would be way better if we had a country led by the people . Who has the ability to provide for a longer and think but not one as far pääva hosts . There are no people in the state who would be at the head of the country’s economy and industry siigi able to develop in order to increase incomes and narrowing of unemployment. Also, we are considered to be better than some of the officials of the Erta Houses and apartments for lease , and this serves the uncontrolled sector privatization . Instead of COUNTRY ‘d build SOTSJAAL LIVING SPACE ON BOTH saw it DOES Finnish state who knows OUT Nana and evaluating the YOUTH leave their homeland . Instead of when to walk out of the country maates WHERE ARE THEY much bigger opportunity to start an independent life than they do EESTIS.Samuti do not caring julgoleku in the population of the country . War threats have not disappeared kuhuki . But we can not bomb variendite cared for , will not be built new or old KAA is not done right. Also, it is a country that takes its peoples which has led to unscrupulous people away from the flow is useful just in our nation , and the country ‘s enemies thus decreases as the country’s defense capability. Politicians tulekds be more considerate of your nation’s life and develop each KÜLKSEL JÄRIE over the country’s economy in order to increase state revenues , and in order to together as the public welfare .

05/01/2014 12:57
How anyone: 5 percent of local bosses of the euro has certainly gone a better life, the rest is worse

05/01/2014 13:00
In terms of the survival of the people of Estonia , the EU has made ​​the situation worse by joining . So far, all the government lost steam after the EU and NATO , and it, to please the U.S.. If you look at the political issues raised , it looks like everything else Highlighted as how to increase the birth rate and reduce emigration . Living in the EU , Estonia has gone several times more expensive than it was prior to the EU . And this does not help speaking, that wages have risen , unfortunately, is the cost of a number of countries in the old EU -level , but the income is very far from that .

As well as the continued existence of the Estonian society today, the debate is not , then you can assume that the situation will deteriorate even further in the near future will bring a wave of immigration in addition to the southern borders of the EU study. Why do I think this ? Already have elucidated the nature of the area in and how much is vamis immigrants to receive . Teles had only recently been advertising in favor of immigrants : a la a person would think of himself as an immigrant somewhere .

Our politicians today lack any understanding of what the interests of Estonia in the EU should do or how to protect the interests of Estonia . If you look at these forums that have been , we can see how our politicians are talking about it , you will see that half of the EU countries ‘ interests should be regulated more consistently , that today the EU countries ( especially the old-timers ) are tearing decks of their party . But our politicians are forgetting that that’s it : every normal state is trying to take care of their own people eekõige . Only our political fools have taken the position where they are ready to sacrifice their own people on behalf of the EU , where the general . And now it will be seen as the voice of the EU core countries do not behave so . And they are not going to behave as well as the lack of enesehävitajalik attitude, which is so characteristic of Estonian politicians.

Petya Corr
05/01/2014 13:08
worse than that before paying the chefs euro euros paid 500 euros and 500 euros for the same value today

Current topic
05/01/2014 13:31
I got a tick injections, the price of 35 EUR, can not remember that last for 500 euros would be paid for. Now, look, most of the prices, so-wage emails. wages.

05/01/2014 13:44
Thirty years ago, the USSR was like … Estonia Estonian USSR as foreigners. Throughout the USSR came here as abroad. Now the Union as the Estonian euro Tajikistan USSR, corvée periphery, the poor, the abandoned, meaningless, pointless
Only bei’del have to live here for good.

05/01/2014 14:18
Is not this so and so being such a status, there have been many failings, but good things too. It’s good that we have a new government, and youth ministers, or really hope that goes better.

I say
05/01/2014 14:59
well shitty

khmm ..
05/01/2014 15:08
Certainly the Estonian life changed for the better! But õinud TAA would be way better if we had a country led by the people. Who has the ability to provide for a longer and think about wh …
1 reply
in the long run, you’d have to go to school and learn to write. is generally the case in the long term, so that it does not work right away. you can see the results of decisions taken by the present government in 20 years. Edgar is a short-term guy. potatoes and firewood, and soon the voters will see that it is built on pakasuuha. Now we will provide escorts for doing unnecessary work for free transportation and municipal bank. These are all short-term actions are immediately visible result, but which are not sustainable in the long term, and probably doing more damage than it’s worth.

05/01/2014 17:31

05/01/2014 17:36
Well, it is too early yet to assess.
Disappointment in Soviet Union took half a century.
We’ll see how much the EU is going to take a Disappointment?

05/01/2014 17:39
better. there is no need to evaluate the cost of the individual before and now. We really do not know how anyone could fall in prices after the economy had long euros, or a crown would have had extreme pressure as the economic situation from 2008 to 2012. The European Union has been the full benefits of the free movement of both the state budget than all together. Incidentally, for those who now also loves to go elsewhere in the world, digging ditches and pulling crud boundaries would still have been a very closed.

05/01/2014 19:47
Estonia’s average salary is less than the current time, however, earned euros while now boast that higher wages only for those up there Toompeal SES has risen properly

05/01/2014 20:32
Such Lonnid shape opinion but, fortunately, Adult wall! Dblikul what went on for half a century to figure out that the NL is hideous occupation of the Estonian people and the rape?

05/01/2014 21:29

05/01/2014 21:38
let’s not only take into consideration the prices and wages. NL is not damaged and destroyed in Estonian culture, language and values ​​70aastaga as much as it has happened in the last few years. the nation and the country has been threatened with collapse. Rural, where the state eksitentsi base has been destroyed, schools are destroyed, people are forced to leave home places economic pressure. The EU has been able to destroy us faster than a few years, when the NL 70aastaga. Methods are simply clever propaganda better. all still freedom, democracy, and freedom of movement under the banner. The EU, however, has already started about eeltegevus 20a back.

20 years of corporate
02/05/2014 10:03
I personally have gone or material is cooler than what can be said about all of my dear acquaintances , which includes a lot of good professionals, educators , musicians , and artists. They do not treat their teeth , their every penny spent on housing , educating children and kasvataminele . The parts are bankrupt and are looking for new outlets meelehetlikult .
Our children are raised and educated in the world , and spread out a few of them are returning , which is really a tragedy .
Hull is that foolish and short-sighted policies paremliberalistide a result of living in the country , which are difficult to love , and the incitement of hatred between them because of the crazily .

Democracy does not work at any rate , things will be decided over our heads and yell the Stalinist propaganda accompaniment. Journalism is corruptible lakeide power to make just such a brainwashed as those in power need . All are built on the opposition .

Small entrepreneurs have the force of a small-timer who habitation always have to cheat a little , because otherwise, the doors should be shut down quickly . As an entrepreneur, I find this very alatuks politics and I am offended by the bottom hinge .
Help and support for dividing those who are doing better , and allow the bubbles start to do something , not the makers.
20 years of hard driving companies have never attracted media attention , but then we read each day blissfully pernicious , decadent life promovatest werewolf heroes . Also, the state has never shared any kind of recognition .
Not long ago , we no longer have any autonomy or self-esteem. Everything is off the Haggle . In this light, the whole europalagan just ridiculous .
In that Estonia does not have a future, it simply breaks down.

02/05/2014 20:29
absolutely agree.
also has received the ultimate freedom of expression. 90s book dared to talk about things in the media.
Now listen, and wonder what the wise and educated public figures out of the mouth of doing. they can not be so dumb.
Consequently, they are either intimidated or paid for. Adult only meiesugsued commentators dare to squeak a little more. and who knows where our nimedki has already been written.
The situation is still very spooky, actually.

Läbikukkunud kapitalism tekitab globaalset ebavõrdsust / The failed global capitalism creates inequality.



Kapitalismist läbi imbunud maailm peegeldab selles valitsevat sotsiaalset ja majanduslikku ebavõrdsust; vahe rikaste ja vaeste vahel on enamikes maades alates 1980. aastatest ainult suurenenud. Thomas Piketty hiljuti ilmunud raamat “Capital in the Twenty-first Century” väidab, et kui käesolev trend jätkub, näevad inimesed ka sellega kaasnevaid kohutavaid tagajärgi. Tegemist ei ole kõigest teadusliku ennustusega. Erinevad viimastel aastatel toimunud sotsiaalsed ja poliitilised liikumised nagu näiteks Occupy Wall Street on tõestuseks sellest, et üha enam inimesi märkab ühiskonnas valitsevat ebavõrdsust ning püüab sellele jõuliselt vastu astuda.


Prantsuse majandusteadlane Thomas Piketty avaldas hiljuti 700- leheküljelise suurteose nimega “Capital in the Twenty-first Century”, mille pealkiri paljudele ilmselt saksa filosoofi ja majandusteadlase Karl Marxi tuntud teost “Kapital” meenutab. Marxi ennustatud kapitalismi lõpp kunagi kätte ei jõudnudki, kuid Piketty usub, et ka tänaste majandusteadlaste tavapärased selgitused kapitalismist ei ole piisavalt veenvad, sest erinevalt klassikalistest majandusteadlastest nagu Karl Marx, David Ricardo ja John Stuart Mill ei pööra praegused majandusteadlased piisavalt tähelepanu kapitali kogumisele – säästmisele, investeerimisele ja rikkuse kasvatamisele. Piketty usub, et kapitalism on pime ning ainus viis selle hukatuslikust spiraalist pääseda on määrata progressiivne varamaks.


Kapitalismi olemus ja ajalugu

Kapitalism on viimaste sajandite jooksul tekitanud tohutu hüppe inimühiskonna progressis – oleme saavutanud eelnevalt kujutlematud materiaalsed elustandardid ning igasuguse inimpotentsiaali kujutlematu kasvu. Kapitalismi sisemine dünaamika tekitab kasude kõrval aga ka ebakindlust ning seetõttu on kapitalismi kasv alati teatavat vastuseisu näinud. Paljude kapitalistlike ühiskondade poliitiline ja institutsionaalne ajalugu ongi tegelikkuses püüelnud justnimelt selle ebastabiilsuse maandamise poole; vaid 20. sajandi keskpaiku kaasaegse heaoluriigi tekkega on hakanud kapitalism ja demokraatia teatavas harmoonias koos eksisteerima.

Kapitalism on majanduslike ja sotsiaalsete suhete süsteem, milles olulisel kohal on eraomand, teenuste ja kaupade vahetus ning nende teenuste ja kaupade tootmise ning turustamise kontroll läbi turumehhanismide. Kapitalismi mõningad elemendid on inimühiskondades eksisteerinud juba aegade algusest alates, kuid täpsemalt loetakse kapitalismi sünniks 17. ja 18. sajandit, kui mõnedes Euroopa osades ja Põhja- Ameerikas kõik kapitalismi jaoks vajalikud komponendid kokku said. Kui läbi ajaloo olid enamik majapidamisi tarbinud enamasti just asju mida nad ise tootsid ja vastupidi, siis just kapitalismi tulekuga hakkas rahvastik enamikke eluks vajalikke tarbeasju ostma, müües selleks maha enamiku asju, mida nad tootsid.

Turule orienteeritud leibkondade kasvuga ilmnes ka kapitalismi tohutu mõju peaaegu igale inimtegevuse aspektile. Kapitalismile eelnevatel aegadel olid traditsioonilised institutsioonid need, mis allutasid inimesed erinevatele kogukondlikele, poliitilistele ja religioossetele struktuuridele, hoides seega ära suuremad muutused ja progressi. Kapitalismi tulekuga saavutasid üksikisikud suurema kontrolli ja vastutuse oma elude üle, kui nad siiani kordagi olid kogenud – tegemist oli nii vabastava kui ka kohutava muutusega, millega kaasnes nii progress kui ka tagasilangus. Täna on kapitalismi kitsaskohaks tendents, et üha enam varasid on järjest üksikumate inimeste kätes.


Kapitalism ja ebavõrdus

Majandusteadlaste kapitalismi puudutavad argumendid on kokkuvõtlikult jagunenud kaheks: esimene, Karl Marxist alguse saanud traditsioon uskus, et kapitalism leiab kasumi vähenemises oma enesehävitusliku lõpu ning teise äärmuse järgi, mille populariseerijaks oli 1971. aastal Nobeli auhinna võitnud Simon Kuznets, peaks ebavõrdsus majanduste kasvades ja keerukamaks muutudes aina vähenema. Piketty arvates ei ole kumbki neist argumentidest tõendusmaterjalidega kinnitatav. Oma teoses näitab ta, et ei ole põhjust uskuda, et kapitalism võiks kunagi ebavõrdsuse probleemi lahendada. Pigem muutub ebavõrdsus postindustriaalses kapitalistlikus maailmas peaaegu igal pool aina hullemaks.

Postindustriaalsed sotsiaalsed trendid on omanud tohutut mõju ka sotsiaalse ebavõrduse kasvule. Kui näiteks perekonna sissetulek igal majandusastmel on eelmisega võrreldes kahekordne, siis nende perekondade sissetulekud, kes asuvad karjääriredelil kõrgemal positsioonil peaksid ka kasvama tunduvalt kiiremini, kui neist madalamatel ametitel olevatel perekondadel, samas kui majanduslikult madalamal positsioonil olevatel peredel ei ole märgata mingitki majanduslikku kasvu.

Selline süsteem seletab lahti vaesuse olemasolu. Kõik, ka kõige elementaarsemad vajadused nagu näiteks toit on rahuldatavad tarbekaupadega, mida müüakse kasumi eemärgi. Seega, ehkki tehniliselt on kõigil igapäevaselt vajadus teatud koguse toidu järgi, on kapitalistlikus süsteemis tegemist “efektiivse” nõudlusega vaid siis, kui inimene suudab tarbekauba eest tasuda. Taolise olukorra vastus seisneb tootmise organiseerimises. Kapitalistlik süsteem on ebaõiglane ja ebavõrdne, sest selles osaleb väike hulk inimesi, kes kogu tootmist kontrollib. Kuidas saab olla tegemist sissetulekute võrdsusega süsteemis, kus vaid vähemus valvab ja kontrollib omandiõigust asjade üle, mis maailmas valitsevad on: tehased, farmid, miinid ja kontorihooned?

Kõik eelnev on tavalistele inimestele märgata. Occupy Wall Street ja sellega kaasnenud ülemaailmsed protestiaktsioonid kandsid endas põhimõtteid nagu solidaarsus, millega seoses püüti ka ümber sõnastada näiteks tööjõu väärtustamist; OWS aktivistid püüdsid ette kujutada sotsi-poliitilist ja majanduslikku alternatiivi, mis pakuks võimaluse suurema võrdsuse saavutamiseks. Piketty raamatu üks olulisemaid eesmärke ongi ehk näidata, et aktivistidel üle maailma on õigus – ta kirjeldab olukorda, millele nii paljud inimesed on juba ammu mõelnud. Ebavõrdsus on globaalne nähtus ning Pikettyl näib olevat sellele ka globaalne lahendus: globaalne varade maksustamine kombineerituna kõrgemate maksumääradega suurema sissetulekuga inimestele.






Capitalism permeated the world that reflects the prevailing social and economic inequality; the difference between the rich and the poor in most countries since the 1980s. increased only . Thomas Piketty have recently published the book “Capital in the Twenty – First Century ” argues that if this trend continues , people will see the dire consequences associated therewith . This is not just a scientific prediction . Different in recent years, the social and political movements such as Occupy Wall Street is proof that more and more people will notice inequalities in society and tries to forcefully confront .

French economist Thomas Piketty have recently published a 700 – page masterpiece called ” Capital in the Twenty – First Century ,” the title of which many probably German philosopher and economist Karl Marx’s well-known work “Capital ” recalls . Marx predicted capitalism, the end never received never got , but Piketty believes that in today’s economists, the conventional explanations of capitalism is not convincing enough , because unlike the classical economists such as Karl Marx , David Ricardo and John Stuart Mill did not turn the current economic researchers enough attention to fundraising – saving, investment and wealth production. Piketty believes that capitalism is blind , and the only way to escape is to determine the pernicious spiral of progressive property tax .

The nature of capitalism and history

During the last few centuries , capitalism has created a huge surge in the progress of human society – we have achieved previously unimaginable material living standards of all human potential unimaginable growth. Capitalism creates the internal dynamics of the side benefits as well as the uncertainty and, therefore, the growth of capitalism has always seen some opposition . For many capitalist societies, political and institutional history is actually precisely on this instability has striven toward mitigation ; the mid-20th century with the advent of the modern welfare state , capitalism , and democracy in particular have begun to coexist in harmony .

Capitalism is an economic and social relations in a system in which private property is important , the exchange of goods and services and the services and goods production and marketing control through market mechanisms . Some elements of capitalism, human societies have existed since the beginning of time , but more is considered the birth of capitalism in the 17th and 18th centuries , when in some parts of Europe and North America, all of the necessary components for a total of capitalism did. Where were the majority of households throughout history have used mostly just the things that they themselves produced , and vice versa , it just started with the advent of capitalism, most of the population lives utensils needed to purchase by selling to off most of the things they produced .

Market-oriented households also showed growth of capitalism huge impact on almost every aspect of human activity . Traditional institutions of capitalism in previous seasons were the ones that enslaved people to various community-based , political , and religious structures , thus avoiding major changes and progress . Achieved with the advent of capitalism, individuals have greater control and responsibility over their lives than they had hitherto never experienced – it was such a release , as well as the dreaded change , which resulted in both the progression and relapse . Today, capitalism is the bottleneck of the tendency that more and more resources are becoming loneliest people’s hands.

Capitalism and inequality

Economists capitalism arguments can be summarized into two categories: first , Karl Marx began a tradition believed that capitalism finds a decline in profits in its enesehävitusliku end and the opposite extreme , for which music to the 1971st year, the Nobel Prize-winning Simon Kuznets , the inequality in economies grow and become more complex ever- diminishing. Piketty opinion, neither of these arguments with evidence to confirm it. His book , he shows that there is no reason to believe that capitalism could never solve the problem of inequality . Rather, the post-industrial capitalist inequality almost everywhere in the world to get worse .

Post-industrial social trends have had a tremendous impact on the growth of social inequality . If , for example, family income every economic level are compared with the previous two-fold, their families, incomes , who are in their careers at a higher position should also grow much more rapidly than those of lower agencies to families , while economic positions of subordination families have not noticed any kind of economic growth.

Such a system would explain the presence rid of poverty . Everyone, including the most basic needs such as food is to satisfy the consumer products , which are sold at profit targets. Thus , although technically all need a certain amount of food on a daily basis by the capitalist system is an ‘ effective ‘ demand only if the person is able to pay for the commodity . The answer to this situation lies in the organization of production . The capitalist system is unjust and unequal, because it involves a small number of people who check the entire production . How can there be equality of incomes in a system where only a minority of supervised and monitored by the right of ownership over things that are prevailing in the world : the factories , farms , mines , and office buildings?

All this has been noticed by the ordinary people . Occupy Wall Street and the resulting global protests wore itself the principles of solidarity, which was taken in connection with the reformulated as employee appreciation ; OWS activists tried to imagine the socio – political and economic alternative that would provide the opportunity to achieve greater equality . Piketty book is perhaps one of the most important goals to show that activists around the world are right – it describes a situation in which so many people have already been thinking about . Inequality is a global phenomenon and Pikettyl seems that the global solution : a global tax assets combined with higher tax rates for people with higher incomes .

Berlin Fears a High Court Ruling Could Threaten the European Union.

The Greek economy ended its four-year exile from international markets last week with a triumphant 3 billion euro (about $4.1 billion) bond sale. The global financial media trumpeted this somewhat unexpected achievement as a sign that things were finally turning around in the European Union’s most blighted country. Media reports to the contrary, Greece’s return to the market does nothing to resolve Greece’s systemic economic deficiencies. Instead, it enables Greece to build up more debt, which will leave it a permanent bailout state for the foreseeable future.

In any case, events in Athens, a city perennially destined to be a dependent on the great powers of any given time, will not be pivotal to the future of the European Union. Nor will decisions made in Spain, Italy or even France. Instead, the Continent’s fate in the 21st century will be decided in Germany. Germany stands increasingly alone as the guardian of the very European order that allowed it to prosper and quelled its historical insecurities about its neighbors.

Something as seemingly banal as a conversation at an Italian restaurant in Berlin does a much better job of illustrating how far Europe actually is from recovery, and how the fate of the Continent lies in Germany’s hands. In the first days of April, German Interior Minister Thomas de Maiziere met with a group of scholars of constitutional law for dinner and discussion of the options for limiting the reach of Germany’s powerful Federal Constitutional Court. The meeting stands testament to the German fear of seeing the European order crumble and to the severity of the political crisis brewing under the surface in the Continent.

The Perils of Unemployment

Stratfor has warned for years that the economic downturn that began battering Europe in 2008 would evolve into a full-blown social and political crisis. Nearly six years have gone by, and the European system remains as dysfunctional today as it was then. Great Depression-levels of unemployment have become the norm in Southern Europe, and have begun to creep northward.

Growing numbers of the unemployed and underemployed are fertile ground for political radicalism. Now, hopelessness about the future of Europe is moving into the mainstream. In election after election from France to Hungary, nationalist and Euroskeptic parties continue to gain in popularity to the point that they are becoming entrenched parts of the political system.

They remain a minority, for now. But many of them, in particular the National Front in France, have had to moderate some of the more radical parts of their platforms to break into the political mainstream. As popular discontent against what is seen as the failures of the pro-European mainstream parties grows alongside the economic crisis, so does support for some of the more nationalistic policies espoused by the far right.

The modern European establishment has only recently begun acknowledging the threat of radical parties. Next month’s EU parliamentary elections have amplified the establishment’s concerns. National elites have a tendency to deride what they perceive as loud and unrefined fringe groups, and to show considerable surprise when they become a political mainstay.

More aggressive commentators have denounced the European leadership for allocating inordinate resources to stabilizing the Continent’s financial sector while pursuing tepid policies to stem the unemployment crisis. But while unemployment is ultimately a much more dangerous risk factor for the medium- to long-term stability of Europe, it is also a more difficult problem to solve.

Unemployment is a deeply political issue, much more so than a bank’s balance sheet. It intersects not only with issues of economics, but also with myriad others including social welfare and sovereignty. While it is generally agreed that a growing economy leads to lower unemployment, the mechanics of job creation are not as clear-cut as those governing sovereign debt risk.

A sea change on how European elites, and Germany in particular, view the crisis now appears to lie ahead. The strategic threat posed by unemployment-fueled nationalism has become a core preoccupation in both Berlin and Brussels. It is becoming clearer that while current stopgap measures, including European Central Bank President Mario Draghi’s famous open-ended bailout guarantee, may have warded off a fatal shock to Europe’s economy, they are doing little to revive it.

Actually reviving it would require particularly bold action from the European leadership. Once-taboo topics such as giving the European Central Bank the ability to pursue monetary financing or mutualizing the debt of eurozone members are now openly discussed at the highest levels of European government.

The thinking has also changed within the German leadership, for whom austerity used to be a quasi-religious mantra and fears of inflation bordered on irrational. Now, even some of the most hawkish representatives of the German Central Bank are making cautious overtures regarding an expansionary monetary policy, especially as the European Union, including Germany, veers toward deflation.

The Limits of the European Central Bank

Calls for the European Central Bank to replicate the policies of its overseas counterparts have grown louder. These often overlook the fact that unlike the Federal Reserve and the Bank of England, which have guaranteeing employment as a charter goal, the sole mandate of the European Central Bank is to ensure price stability, much like the German Central Bank on which it was modeled. Even then, the bank is remarkably constrained. For example, it cannot directly purchase government bonds. These legal constraints can be changed, but only through a difficult political process.

With interest rates at 0.25 percent and data unclear as to the effectiveness of negative interest rates, quantitative easing is becoming increasingly popular, even within the European Central Bank. It is one of the few powerful tools the European leadership has left to kick-start the Continent’s moribund economy. It also happens to be the only one that has at least a veneer of legality. Even then, it is hard to conceive of a meaningful program on par with the United States’ three rounds of quantitative easing that could be easily contained within the bounds of the European Central Banks’s inflation control-only mandate.

Herein lies the root of the problem, which is that all the measures that might reboot the European economy in essence require sacrificing more sovereignty to a central European authority. Even at this hour, when consensus is slowly but surely building on the political side for more drastic action, the European Union’s perennial mandate problem is derailing any hope of recovery.

So far, the European leadership (including the courts) has shown itself to be remarkably creative in finding loopholes and drafting tack-on amendments to sidestep some of the most cumbersome EU legislation and get the job done. Unfortunately, there is no easy answer when it comes to nations having to surrender sovereignty, whether economic, political or social, to a group of barely accountable European technocrats.

The debate surrounding the role of the German Federal Constitutional Court comes against this backdrop. The court, a revered institution in Germany, is spearheading the defense of national interests against perceptions of EU overreach into sovereign matters.

A Threat From the Constitutional Court

Much like the U.S. Supreme Court, upon which Germany’s highest court was partially modeled after World War II, the German Federal Constitutional Court is the final interpreter of constitutional law. Accordingly, it has the last word on the legality of any treaties, agreements or actions undertaken by Germany at the European level.

The court already has challenged German involvement in some of the more creative legal acrobatics undertaken by the European Union. These include the establishment of the EU emergency bond-buying plan known as the Outright Monetary Transactions program. In that case, the German Federal Constitutional Court proceeded with caution and referred the case to the European Court of Justice. But there are strong indications that it could be more aggressive in future cases. A rejection of government moves in a landmark case, such as one involving potential German participation in a strengthened quantitative easing program, could derail the Continent’s recovery.

Economic policy is not the only issue on which the court has proven to be a thorn in German Chancellor Angela Merkel’s side. German electoral law currently requires a party to win a minimum of 5 percent of the national vote to enter the national parliament, a measure designed to keep small radical parties out of an already relatively fragmented parliament. Berlin used to apply a similar threshold to German parties seeking access to the European Parliament. The German constitutional court recently struck down this requirement, and some politicians fear it could soon do the same for German federal elections. The current surge in popularity of nationalist parties heretofore excluded from the legislature may jeopardize the existence of a strong government in Berlin, the only real decision-making body in a battered Europe.

The court’s current course of action poses an existential threat to Merkel’s political career and to Germany’s economy and stability, which continue to depend on the health of the European Union and the economies of its constituent members. Should the court so rule, Germany could rapidly lose its place as the Continent’s strongman, being condemned instead to internal paralysis as it watches Europe slowly stagnate.

As with most of the really important developments in Europe, the battle between the court and the German government will be drawn out and will remain out of the public eye for now. Still, the very existence of open discussions about reducing the power of one of the most trusted and impartial institutions in Germany testifies to how seriously the chancellor’s office takes the danger of the fallout from the court’s potential ruling.

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