Why Europeans have a reason to be afraid of things...
Europe is in the throes of
anxiety, nay fear. Fear of the future. "Fear
creates its own fears which are more fearsome than fear itself."(Author unknown)
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Saturday evening , Germans marched in Berlin,
Munich and other cities, protesting the US -EU Free Trade pact - Transatlantic
Trade and Investment Partnership (TTIP).
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Last week a lady showered confetti at Draghi,
the ECB President protesting ECB policies.
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On the day ECB's new premises was to open in
March 18, Europeans took out protest processions decrying austerity measures.
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In Greece, as in the more afflicted parts of
Europe, the leftists seem to be on the ascent and the masses have been quite
restive.
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All these are indicators of resentment among the
masses. Rising anxieties at the future of Europe among the youth is spilling on
to the streets.
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Europe today appears steadily moving into
shades of oblivion. Europe's big companies like Ericsson and Nokia are no more the
great brands they once used to be. Italians, (remember Ariston?) once reputed for
their industrial prowess is faltering between scandalous politicians and
declining growth. Europe's big airlines, representative of the services industry, have faltered; Qatar, Emirates and Etihad
Airlines with their latest big spaced aircraft have given British Air,
Lufthansa and Air France a run for their
money. The Japanese cars have taken over the mid-size segment threatening to leave
Fiat in to probable memories of another period. The European brands that are
most reputed are targeted at high net worth customers ( Mercedes Benz, BMW Louis
Vuitton). China by contrast, has become the world's workshop supplying cheap goods to an aspirant middle class.
Europe's educational system has
been unable to attract talent as US or even Canadian universities do. Except
perhaps UK Universities and some European Universities like Sorbonne or Erasmus,
international students do not see these academic places as first choice destinations.
The 'auslander' (outsider) fear among students is real both on language and
cultural divergence in Germany for example. The American Universities, by
contrast are seen by the international student as great place of learning and
freedom of academic thinking.
The digital era seems to have a
follower not a leader in Europe. The Europeans have been unable to re-create
the industrial revolution era in this age of the digitalization. Its IT
companies are largely less known for break through innovation. Countries like India had seized the
opportunity while Europe which really has time zone advantage has not been so swift.
Europe has been rather non
receptive and patronizing to immigration. USA has , on the contrary been a net recipient
of talent. Its Universities have always welcomed innovative brains. US
immigration policies have been supportive of retention of talent to assist economic
growth. Parts of Europe , on the other hand, have earned a reputation of shades
of 'Teutonische Arroganz' in its
approach to outsiders. At best, there is
an element of patronage of the less fortunate. Having earlier been great
mechanical engineers and ship builders, Europeans
had been reputed to be innovative and many
several countries have prospered as colonialists in the bygone, prosperous days.
Some of the economies have built the edifice of their economies on the drain of
wealth from the colonies. These colonial flow sources have been dry for over 60
years now. Old colonies like India have
risen from the embers of colonialism to take up commanding heights of the
global economy while Europe has to live on past glory.
Spearheaded by China and India,
the fulcrum of the World growth has now largely shifted to Asia. The central
banks of Asia hold trillions of dollars and Europe in their kitty. Given the
lack of cohesion in thinking and the delayed decision taking seen in Europe,
Europe is no more so dominant a power on the world scene. From Iceland to
Ireland to Italy there are pronounced weaknesses. Fears of a Japan like fall
into prolonged recession haunts even as there is dithering over Greece for
nearly three years!. To be Quantitative easing or not to be took several months
to arrive at a decision. It cannot arrive at any consensus or alternatively, a bold decision over Greece. All
Europe does is to contribute to market volatility over several years! The world
needs to move beyond Greece even if Europe is inefficient. Greece is too small
to matter.
Europe needs to rethink its
approach to men and machines. It can
survive, like UK, only with
transatlantic support. US remains a leader who is far ahead in innovative
breakthrough technology. From Coca Cola to Google to Facebook to Twitter to Intel
it is US brands all the way in relevant consumer markets. The Americans are
affording an opportunity to Europe to still retain relevance. Europe is still frozen
in the past. Like the ostrich it has its head in the sands.
Without any risk or responsibility....
