The Global and European Crisis revisited: An audio from the launch of the Global Minotaur in Finland

Screen Shot 2014-08-22 at 12.03.50 PMOn 25th August, I had the honour of presenting the Finnish edition of The Global Minotaur to a splendid, and welcoming, audience at the University of Tampere. In this post you can listen to an interesting exchange on the state of the global and European economy, why Finns (along with citizens of other European ‘surplus’ member-states – but even more so than most others) ought to be very, very angry with their politicians (over the bailouts and overall handling of the Euro Crisis), on China’s future role etc.  Continue reading

Is Mr Draghi’s ‘turn’ significant? Is Germany ‘turning’? Can Europe escape its ‘iron cage’? Plus, on the Scottish currency plans – on Boom-Bust RT-tv

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[Jump to 3'20''] Erin Ade, RT’s Boom-Bust presenter, interviewed me yesterday on the state of Europe. We talked about the significance of Mr Draghi’s recent ‘intervention’, on whether Germany is about to change course, touched upon my article “Can Europe be saved without turning into an iron cage?” and briefly delved into Scotland’s proposal for a currency union with England if the Scots opt for independence on 18th September.

CAN EUROPE ESCAPE ITS CRISIS WITHOUT TURNING INTO AN IRON CAGE?

ON THE MODEST PROPOSAL’S POLITICAL, CONSTITUTIONAL AND ETHICAL DIMENSIONS

Rembrandt Europa[Image: Rembrandt's 'The Abduction of Europa']

This article is a sequel to an earlier piece entitled ‘Why is Europe not coming together in response to the Euro Crisis?’ and is best read in conjunction with this article (co-authored with James K. Galbraith) that compares our Modest Proposal for Resolving the Euro Crisis with alternative proposals for defeating the Euro Crisis. In what follows below , I argue that, as things stand, ‘political union’, ‘more Europe’, calls for a ‘Eurozone economic government’, or for a ‘Euro Chamber’ within the European Parliament, are not preludes to a democratic federal Europe. Instead, they are steps towards a postmodern European feudalism that is, in fact, the very antithesis of a democratic federation. The article concludes with an analysis of why our Modest Proposal offers Europe a rare chance to prevent the creation of a European iron cage in which what is left of our democracies must suffocate. Unlike all moves that are currently heralded as ‘baby-steps’ towards federalism, the Modest Proposal’s emphasis on ‘Europeanised Decentralisation’ is perhaps Europe’s best shot at a future consistent with the basic principles of a constitutional democracy.

 

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WHY IS EUROPE NOT ‘COMING TOGETHER’ IN RESPONSE TO THE EURO CRISIS?

EU disunityIn this article I ask a question on everyone’s lips: Almost everyone agrees that the Eurozone was a one-legged giant; a monetary union lacking a political ‘leg’ to stabilise it. If so, why has the Euro Crisis (which surely strengthened that view on the back of its ferocity and durability) not strengthen the hand of the federalists? Of those who were, supposedly, waiting to pounce upon any opportunity to create a United States of Europe? (This article was compiled from extracts of a keynote speech I have on 25th August 2014 at the University of Tampere, Finland, in the context of a conference entitled Power, Knowledge and Society.)   Continue reading

Austerity comes to Australia – OpEd, WHITE PAPER, ABC Radio National

Screen Shot 2014-08-22 at 11.18.49 AMFollowing the passing of an Austerity Budget by the Australian Federal Government, the editors of White Paper (ABC Radio National’s online magazine) commissioned me to write an OpEd on what lessons Australia should learn from the implementation of similar austerian fiscal policies in Britain and the Eurozone.

You can read my article by clicking here, or simply by reading on…

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A European New Deal financed by the EIB, with ECB QE-backing, is the optimal policy: Now recommended also by W. Münchau

Faced with deflationary forces in its core, and a lasting depression in the periphery, the Eurozone requires a major investment drive. One of the Modest Proposal’s policy recommendations is that the European Investment Bank (along with the European Investment Fund) embarks upon a massive investment drive (up to 8% of Gross Eurozone Product) without any national co-funding. These investments could be funded through 100% issues of EIB-EIF bonds, with the European Central Bank purchasing, in secondary markets, sufficient quantities of these bonds to ensure that their yields stay well below 1.5%, thus making a European New Deal not only possible but also self-financing – and off the books of national budgets. Continue reading

James K. Galbraith on The Modest Proposal, Europe and Greece

JamieIn this Q&A with a Greek journalist, on the occasion of the launch of the Greek translation of the Modest Proposal, James K. Galbraith argues that Italy and Greece can play an important role in changing the terms of the European ‘conversation’, so that rational, minimalist solutions like the Modest Proposal can have a chance of saving the Eurozone. He also explains that the Greek implosion was always a political choice by Berlin and Frankfurt; and that if the troika squeeze is lessened, it is due to SYRIZA’s success – not to the success of the austerity program. Finally, he answers an important question on the Chinese government’s investment strategies in Greece and in the rest of the Eurozone. 

“The Modest Proposal requires a change of thinking, not a change of European Treaties.”

“If Greece has been declared a success, it is largely due to the success of SYRIZA – not of the austerity program”

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The Modest Proposal (in Greek) – presented tonight, in Athens, by Alexis Tsipras, Yanis Varoufakis & George Krimpas

Πρόσκληση στην βιβλιπαρουσίασηIf you happen to be in Athens tonight (Tuesday 17th June), come to the Byzantine Museum (2 V. Sofias Avenue) at 8pm for the launch of the Greek translation of our Modest Proposal for Resolving the Euro Crisis 4.0. It will be presented by Yanis Varoufakis (who will speak to the proposal itself), George Krimpas (who will place it in a broader context) and Alexis Tsipras (who will speak to it as Leader of the Official Opposition and, primarily, the European Left party’s candidate for the Presidency of the European Commission). (Unfortunately no translation will be available.)

 

A proposal for Federal Unemployment Benefits in the €-Zone: By EU Commissioner László Andor

LaszloLászló Andor, European Commissioner for Employment, Social Affairs and Inclusion, has recently given a speech (at the Hertie School of Governance, Berlin, 13 June 2014) entitled Social dimension of the Economic and Monetary Union: What lessons to draw from the European elections? It is a good speech, well worth reading carefully, that outlines a proposal for a federal-like Eurozone-wide unemployment insurance scheme. While I have my concerns regarding its feasibility, and in particular the notion of fiscal transfers without democratically elected Eurozone federal insitutions, Mr Andor’s speech marks a third category in our classification of proposals to save the Eurozone: Federalist Anti-Austerians. For Commissioner Andor’s speech… Continue reading

Whither Europe? The Modest Camp vs the Federalist Austerians – in Open Democracy

Screen Shot 2014-06-11 at 4.02.33 PMby JAMES GALBRAITH and YANIS VAROUFAKIS

Proposals for resolving the Eurozone crisis, and re-designing its architecture, are multiplying – especially as evidence mounts that the crisis is continuing, despite all the official announcements of its end. Our Modest Proposal  was the first to have been tabled, along with Breugel’s Blue Bond Proposal, back in 2010. In this review article, J.K. Galbraith and I argue that, while there is now a plethora of proposals for ‘fixing’ the Eurozone, there are only two competing camps. One is our ‘Modest Camp’, whose policy recommendations would re-configure the Eurozone immediately, using existing institutions, and without cumbersome federal moves that would legitimate a permanent Austerity Union. The other being, what we described as, the Federalist Austerians’ Camp.  Click here for the OPEN DEMOCRACY site

Europe’s Crisis and the Rise of the Ultra-Right is the Left’s Fault

Nazis riseEurope’s appalling  handling of a euro crisis that was always going to happen, given its faulty architectural design,[1] has triggered an electoral result in the recent European Parliament elections that is a clarion warning that Europe is decomposing. And it is decomposing precisely because of the Left’s spectacular failure to intervene both during the construction phase of Europe’s economic and monetary union and, more poignantly, after the latter’s crisis had begun. Continue reading

Italy, Greece and Europe after the European Parliament elections: An interview with Alessandro Bianchi

ITALY_GREECEHow the current policies of the Brussels-Berlin-Frankfurt triangle are based on a propaganda campaign reflecting continuing Crisis Denial and why they constitute an attempt to create a new financial bubble  – Why SYRIZA is a pro-European progressive party, in contrast to UKIP and Ms Le Pen’s FN – What should we expect of the new Italian government and why there is important room for an alliance between Italy and a SYRIZA-led Greek government. In conversation with Alessandro Bianchi of L’Antidiplomatico (click here for the Italian version) Continue reading

A lesson in democracy for Mrs Merkel (and her merry Merkelites around the Eurozone) by Alexis Tsipras, SYRIZA’s leader

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Alexis Tsipras, leader of Greece’s largest political party (SYRIZA), and the European Left’s candidate for the Presidency of the European Commission, has just given Mrs Merkel (and her merry disciples around the Eurozone) an important lesson in democracy.

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A Europe of One Extreme: Interviewed by Thomas Fazi on the European Parliamentary Election outcome

Europe went to the polls last weekend. Here is my take on the election results – in an interview with Thomas Farzi (author of The Battle for Europe: How an Elite Hijacked a Continent – and How We Can Take It Back).

- What’s your general take on the results of the European elections? Continue reading