European Integration is slow and hard to come by. For others it is moving too fast (Brexit). Cultural diversity is a real asset of the EU. The economy or the economies are powerful on an international scale. Nevertheless, the diversity concerning the tolerance of fiscal deficits is still widely spread across the Member States of the EU (see image below). Some states seem to play it cool and run relatively high deficits compared to the EU averages. In OECD comparisons most of the above average fiscal deficits are closer to or even below OECD averages over time (link to pdf-file OECD, 2024). Within the EU differences in government expenditure as % of GDP or the indicator of Gross public debt according to the Maastricht Criteria range from 20% to 160% as percentage of GDP. This entails a different level of resilience to future crises. After we managed to leave the previous 3 crises (financial, Covid-19, energy) it is time to prepare for what might come next in terms of challenges. Preparing public deficits to be able to soften economic shocks is essential to be able to sustain yourself and support others. We seem to be a bit off-target to coordinate fiscal deficits across the Union. Eastern and Northern countries have suffienct scope to support expansionist fiscal policies, be it in the realm of a defence union or to address climate change. Southern Europe will find it more difficult to raise additional funds to prepare now for future challenges. Fiscal deficits might even be not only an economic phenomenon, but a cultural one as well. If we compare Japan with a deficit running at 240% with South Korea with 50% Asia is showing even larger diversity in terms of fiscal preparedness.
An economist’s stance on fiscal policy and fiscal union might depend much more on her/his region or country of origin than economists might want to believe.
Images: OECD Economic Surveys: Belgium 2024, OECD Publishing, Paris, https://doi.org/10.1787/c671124e-en. p.17. 
Hunger
The UN strategic development goals (SDGs) list after the eradication of hunger as number 2 no hunger by the year 2030. Following the report of FAO, the UN 🇺🇳 organization in charge of nutrition in a larger sense, the world is moving further away from reaching this goal in the 4 last years. The Covid-19 pandemic had disrupted supply chains and caused higher prices for basic ingredients. The poorest countries were most vulnerable to such price increases when even in the rich world government deficits were rising sharply. Before sufficient relief arrived Russia’s war in Ukraine destroyed crops, interrupted again supply chains from Ukraine to many of the poorest nations. Energy prices are a substantial part in the production of fertilizers for agricultural products. Same story Russia disrupted the whole supply chains for food production at affordable prices for the poorest parts of the world. Additionally, Indian food production was lower due to the drought, Pakistan had extreme flooding. Both countries are important export nations for feeding the world. Continuing climate change is likely to put global food production under additional pressure. Price rises will hit the poorest again and again. Feeding animals with crops that could otherwise alleviate hunger in other parts of the world puts the rich world’s consumption patterns also into the spotlight. Fighting global hunger is largely a question of how wealthy nations deal with nutrition. The struggle to fight obesity and hunger under the joint concern of malnutrition unites all parts of the world. Time to act together on both topics.
Roby übernehmen sie
Fachkräfte- und Arbeitskräftemangel spielen zurzeit bei großen Wachstumsphasen nach tiefem Wirtschaftseinbruch eine bedeutendere Rolle. Abgesehen von hausgemachten Problemen wie dem Brexit kämpfen immer mehr Wirtschaftssektoren mit dem Füllen von offenen Stellen. Lassen wir uns nicht blenden von den Heilsversprechen der Techgurus. Roboter in der Pflege sind in experimentalem Stadium. Automatische Kassensysteme in Supermärkten nur langsam bei der Einführung. Autonome Autos weit weg von einer größeren Markteinführung. Riesige Investitionen in Technik und parallele Verwendung von analogen und digitalen Systemen für eine längere Zeit erhöhen zunächst die Kosten. Selbstverständlich müssen wir die disruptiven Techniken und Marktentwicklungen mitgehen und uns oft an die Spitze der Bewegung setzen, aber der mittelfristige Übergang ist gestaltbar. Eine breite Basis an Grundkompetenzen ist die beste Beschäftigungsversicherung. Kurz- bis mittelfristig lässt sich auch in einfacheren Dienstleistungen bei entsprechender Erhöhung des Mindestlohns mehr als ein Grundeinkommen verdienen. Bis wir sagen werden: Roby übernehmen sie, läuft noch viel Wasser die Ahr hinunter. Mehr als viele Techniker, Raumplanende und Prognostiker für möglich hielten. Zusammen mit dem Trend, dass noch lange hybride Techniken Verwendung finden, wie in der Mobilitätsbranche, brauchen wir breite Kompetenzspektren.
We don’t need no education?
The OECD has published new results from the PISA round of data collection from 2018 in December 2019. Some results seem to be more trustworthy than others, particularly when different motivations of pupils are taken into account to participate at their best in such surveys. On the 3rd of December in Brussels a school had just a visit by police, apparently called in by the headmaster, to restore order. The newspaper “Le Soir” published on the 4th December an account of what happened in that nice-looking school from the outside near the famous DUDEN-Park in Forèt, Bruxelles.
On the 4th December, also in Brussels, there was the final conference of the “friends-project“. This EU-cofinanced project tries to build more links of institutions that apply Montessori learning in schools. Maybe it would be a good idea to get the two places in touch with eachother somehow. On the partnership page of the Erasmus+-project there is a Belgian partner. Okay, transcendental meditation is not for everybody, but calming spirits and frustrations to avoid school drop-out and stigmatisation of youth as violent is obviously the worst case scenario.