debating progressive politics in Europe and beyond
Austerity is the curse of our time. Governments cut spending, raise taxes, reduce employment and lower wages in the hope of better times. The consequences are dire. 26 million people are unemployed in the European Union. Youth unemployment is 6 million, in Spain and Greece more than 50 percent. [1] A whole generation is desperately [...]
At the beginning of Europe, there was Italy. Ancient Rome copied Greek culture, but politically the Roman Empire dominated the Mediterranean universe and set the agenda for future empires.[1] Later, the Renaissance in Florence invented modernity and from there “Western” values took over the world. Italy was also a founding member of the Treaty of [...]
The celebrations of 50 years Franco-German reconciliation are behind us and maybe the most impressive fact they revealed was how “normal” these relations have become. De Gaulle re-accredited the “great German nation” after the war, Helmut Schmidt and Valery Giscard d’Estaing laid the foundations for Europe’s Monetary Union, Mitterrand and Kohl implemented it, but all [...]
In my last column, I argued that the No-bailout principle in Europe is bankrupt, because it destabilises financial markets and sharpens the economic crisis. One reason why governments resist bailouts is that they believe it would violate the interests of their citizens. For the same reason the German Bundesbank is opposed to the ECB buying [...]
The European Central Bank has put its ultimate weapon in place: Under the new Outright Monetary Transactions (OMT) program, the ECB will buy bonds of distressed member states without predetermined limits, provided they have applied for assistance from the ESM. ECB-President Mario Draghi has repeatedly declared that the ECB will do “whatever it takes to [...]
The Euro patient is in the intensive ward, but the doctors cannot agree on how to help. While Eurosceptics are already preparing the funeral, Europhiles keep praising the single currency in the hope of avoiding its premature death. Maria Joao Rodrigues has written an excellent overview of the Euro crisis showing how economists and political [...]
It is fashionable to blame lack of competitiveness for having caused the Euro-crisis. Yet, competitiveness is difficult to measure. The most common indicator is relative unit labour costs (ULC), i.e. the cost of labour compensation, including taxes and social security, per unit of output. These costs are usually measured by an index that shows how [...]
Francois Hollande has emerged as the new leader of Europe. Like the biblical young David, he has dared to challenge the Goliath-like consensus imposed by German conservatives, according to which only cutting budgets can get us out of the crisis. If he wins the battle, he may well become the King of the European Promised [...]
Europe is on the move; new thinking is emerging among social democrats. This is what I discovered at the meeting on the Renaissance of Europe organized by four important think tanks, FEPS, Fondation Jean Jaures, Friedrich Ebert Stiftung and Italianieuropei in Paris on 16-17 March. Social democrats do not want to see Europe die. In [...]
Angela Merkel has made her choice: “I support Nicolas Sarkozy on all fronts,” she told reporters in Paris. This is not surprising. It is “perfectly natural” to support fellow conservatives, she explained. Yet, this alliance is dressed in historic terms: “It’s about the big responsibility we have, the construction of Europe. We are surrounded by [...]
The Euro crisis may soon be over. This is what German Finance Minister Schäuble thinks and his view is finding an echo among a growing community in the financial markets. But is it true? For Chancellor Merkel and her followers, we are experiencing a debt crisis caused by irresponsible fiscal policies. Their remedy is therefore [...]
The end seems nay. Banks and businesses are setting up contingency plans for the break up of the euro. After the euro, the single market and in time the European Union will follow. Depression, unemployment, mass poverty and social unrest will sweep over Europe. Merkozy have now produced the nth exit plan for the crisis. [...]
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