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I am among those who do not view the EU as a sovereign.  While it is true that the ability to issue debt is an important element of sovereignty in MMT, it is not the only element.  The flip side is the power to tax, and these two sides together mean the government controls the flow of currency within its boundaries, making the government and the currency sovereign.  The EU does not control the flow courtesy German neoliberal dogma that completely misinterprets what happened after the World Wars (Yes the currency collapsed and so did the economy, but not only is correlation not causation, effect is not cause either.  Germany insists on calling a symptom the disease, and everyone else suffers for it.) and ignores Bismarck's financial moves while Chancellor (Does anyone actually believe his economic and social welfare programs were hard-money funded?).

Nor is currency all there is to sovereignty.  I'm reminded of an exchange between Henry and Philip in The Lion in Winter in which Henry claims a certain province is his, Philip fires back how, given the treaty between England and France, Henry can make such a claim, and Henry responds, "It's got my troops all over it; that makes it mine."  We may not want to admit it, but projection of force is a significant element of sovereignty, and the EU has gar nichts.  If you doubt this, just watch what the world becomes over the next decade.

by rifek on Sun May 31st, 2020 at 09:58:04 PM EST

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