European Union
Farage is Right About One Thing: The EU’s Democratic Deficit Does Matter
One of those sinful pleasures that some young progressives (among others) secretly indulge in is watching the chairman of the Europe of Freedom and Democracy EP group, Nigel Farage, humiliate time and again the EU’s leadership. Yes, even with all the cheap demagogy and the tasteless ad hominem attacks, Farage can be very funny. Nevertheless, [...]
Angela Merkel: The World’s ‘Most Valuable Leader’
Forget Barack Obama. Forget the Hu Jintao/Wen Jiaboa duo, or David Cameron or Vladimir Putin. Germany’s Chancellor Angela Merkel is the world’s most important leader. The latest report showing Germany’s economy growing at a blistering annual rate of nearly 9%, well into recovery from a US-made economic collapse, is just further evidence of the obvious. Despite [...]
A Year of Missed Opportunities for the EU
In politics it is August rather than January when people look back at the last year and take stock of what has or has not been achieved. Hence, as I have been soaking up the Spanish sun, my mind has been replaying events from the last twelve months. Last summer, I had great optimism for [...]
Who is reforming Europe’s Economic Governance?
After the crisis, European policy makers are now crafting reforms to strengthen the Union’s economic governance. It is an opportunity to make Europe more democratic. Instead, conservatives increase the democratic deficit under the pretext of closing budget deficits. This will not work. The European Commission has proposed measures to enhance economic policy coordination. ECB President [...]
Economic Governance in Europe: A Change of Course only after ramming the Ice
The European Commission recently announced proposals to enhance economic policy coordination and strengthen EU economic governance (here). They start from the right premise: ‘the crisis has shown that they [economic policy coordination instruments] have not been used to the full and that there are gaps in the current governance system’. Concrete measures are proposed, all [...]
Europe’s Federalism Debate Revived
This issue is of persistent concern for investors worldwide. Holders of European government bonds believed that they knew what they had bought. Sure, there was no such thing as a eurozone sovereign security. But German, French, Spanish, and even Greek bonds all carried roughly the same interest rate, so they were deemed equivalent. Investors now [...]
Is Post-Ideology coming to a Voting Booth near You?
I hadn’t planned on writing about Hungary again quite so soon – not unless our domestic politics raised some point of larger significance to European progressives in general. But a few days ago our new right-wing (?) prime minister, Viktor Orbán announced that the time of the old ideologies that had shaped the 20th century [...]
The Great Hunger Lottery: How Banking Speculation causes Food Crises
Last week a British hedge fund bought 250,000 tonnes of cocoa beans, pushing prices up to a record 33-year high. Hedge funds and banks are constantly speculating on food and other commodity prices, but what was unusual in this case is that the hedge fund actually took delivery of the beans. These actions are an [...]
Leaving the Euro: What’s in the Box?
Rumours of Eurozone break-up are mounting. This column argues that exiting a strong currency for a weak one poses almost unthinkable challenges, from the redenomination of contracts and the imposition of bank restrictions to the restructuring of external debt and limiting of capital mobility. Lessons from Argentina illustrate just how radical the changes would need [...]
Europe Needs a Public Relations Makeover
The American-European relationship has been crucially important during the post-World War II era for both places. Yet recently it has been hurt by both neglect and design. Even before the Greek debt crisis, Europe had been suffering a longstanding public relations crisis in the United States. Americans think they know quite a lot about Europe, [...]
A European Economic Government Could Solve Europe’s Democracy Deficit
Europe has come to praise democracy and is about to bury it. The Greek crisis, caused by the uncooperative behaviour of different nation states, has been a wake-up call showing that monetary union without an economic government will not work in the long run. Reforms are needed. Yet, because they widen the democratic deficit, the [...]
Competitiveness through Cuts?
A standard piece of textbook economics is that if a country cannot devalue, it must cut real wages to increase labour productivity and make its exports more attractive. Indeed, it is argued quite plausibly that the main reasons for Germany’s successful export performance in the past decade is that real wages have remained flat, despite [...]
