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 DoDo - Dec 18 1 comment
by ARGeezer - Dec 15 62 comments
by Democrats Ramshield - Dec 16 1 comment
by gmoke - Dec 2 8 comments
by das monde - Dec 14 17 comments
by LEP - Dec 9 26 comments
by gmoke - Dec 17
by ARGeezer - Dec 8 16 comments
by DoDo - Dec 181 comment
by gmoke - Dec 17
by ReGiNuss - Dec 171 comment
by Democrats Ramshield - Dec 161 comment
by ARGeezer - Dec 1562 comments
by das monde - Dec 1417 comments
by LEP - Dec 926 comments
by ARGeezer - Dec 816 comments
by gmoke - Dec 72 comments
by rz - Dec 415 comments
by gmoke - Dec 28 comments
by A swedish kind of death - Dec 233 comments
by rz - Nov 3071 comments
by Migeru - Nov 2959 comments
by ARGeezer - Nov 242 comments
by Cyrille - Nov 247 comments
by ARGeezer - Nov 20
by gmoke - Nov 1916 comments