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.
Friends come and go. Enemies accumulate.
by Luis de Sousa - Sep 22 1 comment
by Oui - Sep 23 1 comment
by Cat - Sep 14 14 comments
by gmoke - Sep 19 1 comment
by Frank Schnittger - Sep 10 5 comments
by ARGeezer - Sep 7 39 comments
by Frank Schnittger - Sep 2 57 comments
by Oui - Sep 231 comment
by Luis de Sousa - Sep 221 comment
by gmoke - Sep 191 comment
by Cat - Sep 1414 comments
by Frank Schnittger - Sep 105 comments
by ARGeezer - Sep 739 comments
by Frank Schnittger - Sep 257 comments
by THE Twank - Aug 3110 comments
by Frank Schnittger - Aug 2757 comments
by Cat - Aug 2222 comments
by Cat - Aug 2225 comments
by Cat - Aug 185 comments