Two countries, two proposals, two steps towards a worldwide disaster…
- France: Carmakers are encouraged by President Sarkozy to buy specific volumes of parts from local suppliers. For the president this might be a way for Peugeot and Renault to support France’s domestic subcontractors and suppliers in return for government loans.
- United States of America: A not-yet-approved bill for major public construction projects is designed to favour U.S. steel, iron and manufactured goods over imports. In other words, compatriots are encouraged to “buy American” in order to restore the commercial balance.
The EU warnings came from letters addressed to Timothy Geithner, the Treasury Secretary, and Hillary Clinton, the Secretary of State. The author, John Bruton, European Commission’s ambassador to Washington, urged USA to respect the decision taken by the G20 in Washington last November to resist protectionism as a means to manage the crisis. The EU threatened to retaliate if the US Congress went ahead. The Commission also made it clear that it was keeping an equally vigilant eye on protectionist moves within Europe.
Today, one may wonder if politicians have listened to their teachers during the history classes. One may wonder if they have learnt the lessons from the past, and if they have understood the disaster the protectionist measures of the 1930s have created.
The best way to fight the crisis lays in common action plans, discussed and taken at the international level. One could address a well-known message to politicians: THINK LOCAL BUT ACT GLOBAL.
