At the same time that Elon Musk claimed he had discovered the magic money computers at the US Treasury that “make money out of thin air”, the Financial Times reports Dutch politician Pieter Omtzigt as warning that Europe risks a new debt crisis.
Greater defence spending and the easing of the bloc’s deficit and debt rules are what concerns Omtzigt. EU countries may be unable to service their debts, in which case some may need to be bailed out. “Maybe our Greek friends can tell you what the price of that is at some point for your own population,” he asks. We should not forget that austerity policies were the price.
But the scaremongering about public debt crises signals a deep lack of understanding of how the Eurosystem can and could operate. Yes, EU countries also have magic money computers — if they wish to use them.
Dutch politicians would do better to consider how the Netherlands can contribute to build a resilient Europe, how to free up resources, manpower and goods, because inflation and an increase in wealth inequality are the real risks of the ambitious EU plans.
What the Netherlands and Europe cannot afford is a private debt crisis caused by a lack of government spending at a time of huge challenges.
Dirk Ehnts
Brussels, Belgium
Michéle Thole
Amsterdam, The Netherlands