The Financial Crisis.
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Harry Morskate | 9
september 2011
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The
banking and debt crisis was not a surprise for many economists. Lack of transparency, high risks arising
from self-interest and lack of control were the ingredients that would
lead to the crisis. It's amazing to see that the banks, after
billions of State aid, soon returned to profit, big bonuses and
rejection of any supervision. The State, therefore the tax payer, being
faced with a large debt.
Our community is also in a financial and debt crisis situation, often
caused by some of the same reasons. Since the beginning of the
international debt crisis, governments are trying to save. This is based on the knowledge that
overspending and excessive debts are the real cause of the problems.
But that knowledge and insight is lacking
in our community council as a whole. Compared with 2007, the
debt of our community rose by 83% from € 125,000 to € 229,000.
It is remarkable that the debt increases, while the community has a
'balanced' budget and positive operating result. For all other
governments (local or national), the problem is one of deficit and each
administrative body tries to reduce expenditure to save money and thus
lower the debt mountain.
As with the banks, in our community there is a great lack of
transparency, there exists a conflict of interests, and there is a
total lack of control.
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Worse, all economic and finacial laws are ignored and the debt per inhabitant is now almost
300% higher than in comparable communities, and is as large as the
entire annual income of our community. Those are really Greek
situations.
Without any real reason, our mayor uses the argument of lack of funds
not to perform the normal obligations of a 'mairie' and undertake the
necessary investments in infrastructure. But for unclear reasons, even
without prior consultation with the council, expensive new projects are
put forward by the mayor. Examples: the entrance to Valquieres and the
'renovation' of the old castle (estimated cost: at least € 450 000).
There are even plans for a new town hall: an investment of an estimated
minimum of € 250 000.
These new projects are started in an almost mysterious way by our mayor
and, usually, without prior council approval. Eventually, (with secrecy
as practised in non-democratic countries such as North Korea) these
insane plans are almost unanimously adopted.
The resulting debt and expense have then to be picked up by the
inhabitants and that is the explanation for the high tax rates and the
debts.
The poor Greek population is deceived by its elected politicians and
must now bear the burden. The same fate awaits our fellow residents. It is time the council takes its
responsibility and no longer supports the mayor in this irresponsible
behaviour. The council will have to serve the interests of all
residents and should not contribute to the possible expensive,
nonsensical and possible private interests of our mayor.
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