The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
There are two distinct but related problems. The first is that the EU as currently constituted lacks an investor of last resort. The second is that it lacks any means to ensure that internal current accounts imbalances do not become a political problem.
There is a variety of possible reforms that would solve these problems. A European treasury not subject to silly "debt brakes" would solve both problems, but may be politically unpalatable. Repealing the GSP and Art. 123 would solve the investor of last resort problem, but not (necessarily) the current accounts imbalances. A Bancor-type arrangement would solve the internal current accounts problem (or rather, signify political acceptance of the existence of otherwise unsustainable imbalances), but would not solve the problem that the GSP circumscribes the states' ability to perform investor of last resort functions.
Finally, the physical economy of Europe (in particular the periphery) has the problem that thirty years of neoliberal brain rot (twenty in the case of Eastern Europe, but with much weaker countervailing pressures) have rendered large swathes of Europe into a wasteland, industrially speaking.
Austerity can only be implemented in the shadow of a concentration camp.
by afew - Jul 21 9 comments
by Frank Schnittger - Jul 21 39 comments
by gmoke - Jul 21 2 comments
by Migeru - Jul 17 48 comments
by Frank Schnittger - Jul 16 61 comments
by Oui - Jul 19 4 comments
by DoDo - Jun 12 29 comments
by Frank Schnittger - Jun 30 55 comments
by Frank Schnittger - Jul 2139 comments
by gmoke - Jul 212 comments
by afew - Jul 219 comments
by Oui - Jul 194 comments
by Migeru - Jul 1748 comments
by Frank Schnittger - Jul 1661 comments
by Oui - Jul 623 comments
by Oui - Jul 41 comment
by afew - Jul 248 comments
by gmoke - Jul 15 comments
by Oui - Jul 17 comments
by Frank Schnittger - Jun 3055 comments
by gmoke - Jun 2813 comments
by Oui - Jun 251 comment
by ceebs - Jun 244 comments
by Oui - Jun 241 comment
by DoDo - Jun 236 comments
by DoDo - Jun 1229 comments