Gefira #19 deals with the insoluble European economic imbalance, President Trump’s Jerusalem announcement as a brilliant move that has little to do with Israel, the revival of Central Europe, and Erdoğan’s grand plan for the Old Continent. The Gefira team predicts the next crisis will occur in 2020 because by that time the European workforce will have been significantly reduced and oil price will be at an all-time high.
Gefira Financial Bullletin #19 is Available now
Hardly any protests were staged against President Macron’s labour reforms, which comes as no surprise because – contrary to the enthusiasm expressed by the media – these are no serious reforms. The labour market is broke beyond repair.
Doing nothing in Western Europe is fivefold more lucrative as working in Central Europe. The difference in wages across the economic bloc is enormous and it is one more reason why further integration is doomed to fail.
France’s President has vowed that he will reinvigorate the economy and make his country competitive again. He started his presidency with the so-called fundamental labour reforms that also aim at giving employment to the huge number of Africans in the Banlieues, which, as is believed, can be solved by putting more money into education.
A study has revealed that French school children aged 9 to 10 have been ranked worst in Europe for their reading skills, a steady decline since 2001.
However, it is not education but the difference in income across the continent that is the key problem. The minimum wages across the European Union differ enormously. In Hungary, Poland and Czechia they stand at about 450 euro a month while in countries like the Netherlands, France and Germany – 1500 euros a month. Add to it social security and a typical migrant family with three children in the Netherlands receives altogether about 2100 euros a month. If a family member has a 4-hour unregistered job, he can earn an additional 200 euros a month. In other words an unemployed Moroccan with a few closest relatives can get five times as much as a hard working person in Hungary. It is no wonder that French factories cannot fill their vacancies even though they offer far better wages than those in Central Europe. Paris wants to solve this imbalance with more education of the army of unemployed French people. Strangely enough, there is no need for more training to get the Poles, Hungarians or Czechs to work in the West.
Gefira 19 is available now and explains why Europe is a political, social and economic disaster in the making. We give a comprehensive view of the coming events and explain why 2020 is the next breaking point of global dimensions.
OR
The Gefira Financial Bulletin is a private briefing paper on the current economic events for investors and generally the business community. It is accompanied by our website, where you will find articles on social issues.
The Gefira research team is the only one that is acutely aware of the importance of the current unprecedented demographic changes not seen before in all of history.
The Gefira research team elaborates its anticipation, drawing on:
1. an extensive knowledge of finance and banking;
2. a comprehensive understanding of geopolitics and history;
3. detailed data analyses of millions of records;
4. computer-aided simulations.
One comment on “Investors must understand that Macron has no solution for the French economy”
is there a political party in the western world that will act in the peoples best interest /
There primary interest is doing what is necessary to get reelected….