The European Union is similar to the Weimar Republic in the 1930s, as Brussels' financial policy is leading to "the European political agenda turning toward fascism," Yanis Varoufakis, a founder of pan-European Democracy in Europe Movement 2025 (DiEM25) and a former Greek minister of finance, told Sputnik.
MOSCOW (Pakistan Point News / Sputnik - 17th December, 2018) The European Union is similar to the Weimar Republic in the 1930s, as Brussels' financial policy is leading to "the European political agenda turning toward fascism," Yanis Varoufakis, a founder of pan-European Democracy in Europe Movement 2025 (DiEM25) and a former Greek minister of finance, told Sputnik."Europe is falling apart, the political center is breaking up, we can see the largest disbalance in history between the savings accrued and the small investments ... At the pan-European level, this reminds one of the 1930s. The disbalance between the amount of money and investments is what led us to Hitler and Mussolini. Now it is leading us to [Italian Deputy Prime Minister Matteo] Salvini, [the Alternative for Germany party] AfD, to the European political agenda turning toward fascism in general," Varoufakis said.
According to the former Greek finance minister, there is about 3 trillion Euros (roughly $3.4 trillion) inside the eurozone at the moment that is not being invested.
"Secondly, interest rates in Germany are guaranteed to remain negative. Pension funds, especially private ones that most Germans work with, are growing smaller, people begin turning to the Alternative for Germany and leaving [German Chancellor Angela] Merkel. They did not leave her because of migrants, but they are leaving her because they are clearly seeing deflation tendencies in their savings," Varoufakis said.
When the Weimar Republic in Germany began falling apart in 1929, "only nationalists and fascists profited from it," the founder of the DiEM25 argued.
"Today, we are facing the destruction of the political center, while Salvini, [Germany's Interior Minister Horst] Seehofer, [French National Rally leader Marine] Le Pen, and [US President Donald] Trump turn out to be the only saviors," Varoufakis said.
The politician explained that the Progressive International organization, actively backed by Varoufakis himself and US Senator Bernie Sanders, was set up as a way to do what the previous generations were unable to do in the 1930s: join efforts.
"Our grandfathers and grandmothers, progressivists, failed to unite in the 1930s, because bankers and fascists united back them," Varoufakis said.
The politician pointed out that Brussels was losing in France, where "Yellow Vest" movement launched a series of protests against the current economic situation in the country. The French government rolled back the planned increase of a fuel tax, but the protests did not stop. Last week, French President Emmanuel Macron promised to raise a minimum wage and relax some tax rules.
"They lost. The Weimar Republic that is Brussels can hardly follow the circumstances. What is happening in France with Yellow Vests is the result of the deep stagnation of the French society and plunging into a rhythm that is similar to Greece," Varoufakis said.
According to the former Greek finance minister, the election of Macron was the result of a "social contract" between the French and the German, under which the French president was expected to "germanize" France and then ask Merkel to come and "federalize" Europe into a union with "one economy ministry, one budget, real banking integration, joint unemployment allowance funds, and a joint investment plan."
However, Macron's reforms have only led to the emergence of the "Yellow Vest" movement, Varoufakis pointed out.
"This was a giant tactical mistake for Macron, he had to adhere to a quid pro quo principle, 'I'll do it, but you will accept my conditions, too.' If you give Berlin what it wants first, there is no probability that it will give you even some of what you asked for. Especially when she [Merkel] is weakened herself," the politician said.
Macron now understands that his fight for the united Europe is crumbling, "and so his panic is growing," Varoufakis said.
"The Yellow Vests with their 80-percent approval ratings appear, and Macron has to do what they want. Any mutual understanding with Berlin ends there," Varoufakis said.
ROME, BRUSSELS BOTH WRONG ON BUDGET CLASH
Meanwhile, Rome is clashing with Brussels over Italy's draft budget, which allows for too large a deficit in Europe's opinion, while Italy is pushing for higher public spending to reinvigorate its economy. However, both sides are wrong in this conflict, Varoufakis believes.
"Both Brussels and Salvini are mistaken. It is impossible to do what Brussels wants. What Salvini wants is also impossible. Imagine if I said, 'I will flutter my hands and fly.' No matter how ambitious I was, nothing would come out of it. If you adhere to the policy of Brussels financial pact and follow the formula that determines what your deficit should be, you will never have the deficit that is needed," Varoufakis said.
The former Greek finance minister added that Salvini would not be able to achieve economy growth even if Brussels let him have the deficit he wants.
At the same time, Salvini is "a symptom," and European leaders, like President of the European Commission Jean-Claude Juncker, European Commissioner for Economic and Financial Affairs Pierre Moscovici, and Macron would not be able to hold on to their positions if it weren't for the Italian deputy prime minister, Varoufakis argued.
"Their policy is so unsuccessful that, were it not for Salvini, they would not be able to justify their own existence. When Salvini appears with his hatred and racist rhetoric, Macron and Juncker step out and say, 'Us or Salvini'," the Greek politician said.
On the other hand, Salvini needs Juncker and other EU officials as someone pressuring him into adhering to financial rules, "that everyone knows are nonsense," Varoufakis added.
"Because of this, Salvini can say in front of the Italians, 'I am the leader that can save you from Brussels' nonsense'," the politician said.
Salvini has reacted strongly in the past to being called "fascist." When Mission Lifeline charity referred to him as such amid the row over migrants' arriving in Italy be sea, the Italian deputy prime minister said "insults" would not stop his government.
MeRA25, a Greek party set up by the DiEM25 movement, has already prepared its election manifesto for the Greek general election next year, and is proposing, in particular, to adopt a package of measures that would help improve the economic situation, Varoufakis said.
"If they want to throw us of the eurozone because we are proposing obvious things, good, let them do it. If they want to throw us out because we will be solving the red loans problem by setting up a special organization, let them. I think they won't because it will cost them 1 trillion euros, while everyone is watching Brexit, Salvini, Macron, Yellow Vests. We do not propose or demand to leave the eurozone," the politician said.
Varoufakis explained that his decision to run as a candidate from Germany at the European Parliament elections next year was a symbolic gesture.
"The reason is the wish to show that there is no conflict between Germany and Greece. Our movement DiEM25, of which MeRA25 is a part, began in Berlin for the very same reason. We want to show that nothing in Europe can change unless it comes from Germany, the center of Europe," Varoufakis said.
The politician added that his focus would still be on the election campaign in Greece.
