<blockquote>'Crises often present opportunities, and it looks like Europeans are eager to take advantage. Many studies show that (budget cuts) prepare the way for above average growth.'
- Michael Hüther, head of the Cologne Institute for Economic Research. (
Source)</blockquote>
'...to reduce public spending and taxes, in order to increase the available income of heavily-indebted economic agents who need to repay their loans as soon as possible.'<blockquote>'...despite the difficulties of those members of the Monetary Union which, like Spain, are now discovering that much of their investment in real estate was in error and are heading for a lengthy and painful reorganization of their real economy.
Under these circumstances, the most appropriate policy would be to liberalize the economy at all levels (especially in the labor market) to permit the rapid reallocation of productive factors (particularly labor) to profitable sectors.
Likewise, it is essential to reduce public spending and taxes, in order to increase the available income of heavily-indebted economic agents who need to repay their loans as soon as possible.
Economic agents in general and companies in particular can only rehabilitate their finances by cutting costs (especially labor costs) and paying off loans. Essential to this aim are a very flexible labor market and a much more austere public sector.
These factors are fundamental if the market is to reveal as quickly as possible the real value of the investment goods produced in error and thus lay the foundation for a healthy, sustained economic recovery in a future which, for the good of all, I hope is not long in coming.'
- Jesús Huerta de Soto, Bank Credit and Economic Cycles (
pdf), xxii</blockquote>
...Desertec, the 21st century's energy production mega-project...<blockquote>'The solar towers at the Solúcar plant, which is owned by the Spanish Abengoa group, are the most futuristic system the solar industry can offer today. Scientists love this technology, because it is capable of converting so much solar heat into electricity.
Solúcar is a prototype of sorts for Desertec, the 21st century's energy production mega-project. The bold concept is designed to provide Europe with clean, renewable energy in the form of solar power from the Sahara. It has the capacity to avert the energy crisis and stop climate change, while simultaneously combating poverty in Africa. Not surprisingly, experts and politicians alike applauded when 12 companies initiated the Desertec Industrial Initiative last summer. The consortium includes multinational corporations like Siemens, major banks like Deutsche Bank and energy giants like E.on and RWE. They are all eager to be involved, if and when the dream becomes reality.
German Chancellor Angela Merkel was enthusiastic, the president of the European Commission was rapt and ordinary people were fascinated. The plan foresees Europe deriving almost all of its electricity from renewable sources within 40 years from now, with a sizable portion of it coming from the Sahara. For many people, the dream is even more momentous than the Moon landing. But, at an almost inconceivable estimated cost of €400 billion ($492 billion), it would also be more expensive.
...
"We are an idea," says van Son, "a movement." For the time being, the disciples of light keep themselves busy lobbying the German government, the EU and other governments in Europe and North Africa, hoping to find out what exactly Desertec should be asking for, and what underlying conditions must first be fulfilled to turn the idea into reality. Initial construction plans have also been produced.'
- Cordula Meyer,
European Dream of Desert Energy Takes Shape, 05/27/2010</blockquote>