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Explaining The EU’s Politics Of Austerity

Melloni, Nicola, (2015), “Explaining The EU’s Politics Of Austerity”, Social Europe Journal, 17 August What is the logic behind austerity? The standard explanations given during the last five years do not hold solid ground. Many – including famous economists and central bankers – had supported budgetary cuts to restore market confidence. Markets, however, were hardly impressed: operators care about profits – usually associated with growth – and cuts in the …Read More

Iceland, Greece and political hectoring

Danielsson, Jon, (2015), “Iceland, Greece and political hectoring”, Voxeu, 13 August The Greek and the Icelandic crisis have much in common, not the least the heavy pressure from foreign countries and the hectoring from their public officials. In Iceland and in Greece this was counterproductive, hardening the opposition to any settlement. The will to reform needs to come from within, and the sooner the Troika realizes this, the easier it will be …Read More

The Euro, Like The Gold Standard, Is Doomed To Fail

Pettifor, Ann, (2015), “The Euro, Like The Gold Standard, Is Doomed To Fail”, Social Europe Journal, 31 July On 20th July, 2015 Jacques Delors reached the grand old age of ninety years. President Hollande saluted the elder statesman and told Journal du Dimanche, that “in the past week the European spirit (had) prevailed” in addressing the Greek crisis. This referred to the long, brutal and historic overnight negotiations of 12th July, between …Read More

There is more to the Eurozone than the division between ‘North’ and ‘South’

Kral, Daniel, (2015), “There is more to the Eurozone than the division between ‘North’ and ‘South’”, LSE blog, 30 July. Opposition to the proposed Greek bailout deal has generally focused on the role of Germany, but how do other Eurozone states view the debt crisis? Daniel Kral notes that while there is a tendency to present the crisis as a stand-off between the Eurozone’s ‘North’ and ‘South’, the situation is …Read More

The Eurozone’s German Problem

Legrain, Philippe, (2015), “The Eurozone’s German Problem”, Social Europe Journal, 27 July The eurozone has a German problem. Germany’s beggar-thy-neighbor policies and the broader crisis response that the country has led have proved disastrous. Seven years after the start of the crisis, the eurozone economy is faring worse than Europe did during the Great Depression of the 1930s. The German government’s efforts to crush Greece and force it to abandon …Read More

The Deal on Greek Debt: Political Gamechanger for Europe, Tactical Retreat (not Surrender) by Tsipras

Howse,  Robert, (2015), “The Deal on Greek Debt: Political Gamechanger for Europe, Tactical Retreat (not Surrender) by Tsipras”, Verfassungsblog.de, 13 July The conventional wisdom, delivered before anyone could really ponder the fine print of the Greek debt deal, is that Tsipras surrendered to the creditors in a humiliating defeat.  His referendum and prior tenacity in negotiations proved futile,according to the predominant account that has emerged in the media and the …Read More

Hollande proposes a Eurozone government

Scarpetta, Vincenzo, (2015), “Hollande proposes a Eurozone government”, Open Europe blog, 20 July Almost inevitably, the Greek crisis has reignited the debate over the future of Eurozone integration. Whatever happens with Greece – the country’s euro exit is definitely not off the table – it is clear that, at least in terms of rhetoric and intentions, we are likely to witness a renewed push for closer ties among the countries sharing …Read More

Political Union Now!

Techau, Jan, (2015), “Political Union Now!”, Carnegie Europe, 13 July Let’s put aside Angela Merkel’s economic wisdom in the Greek crisis for the moment. To be sure, as an economics layman with a penchant for fiscal conservatism, Merkel’s alleged toughness sounded reasonable to me, partly because it was well cushioned by enormous generosity. I think she basically had it right, and that her strategy for the euro crisis was better than …Read More

Europe’s Civil War

Slaughter, Anne-Marie, (2015), “Europe’s Civil War”, Project Syndicate, 21 July The negotiations leading up to the latest tentative deal on Greece’s debt brought into relief two competing visions of the European Union: the flexible, humane, and political union espoused by France, and the legalistic and economy-focused union promoted by Germany. As François Heisbourg recently wrote, “By openly contemplating the forced secession of Greece [from the eurozone], Germany has demonstrated that …Read More

The Myth Of The EU’s €35bn Investment Package For Greece

Kühnlenz, Andre, (2015), “The Myth Of The EU’s €35bn Investment Package For Greece”, Social Europe Journal, 21 July We can all recall an enthusiastic Commission President Jean-Claude Juncker. Shortly before negotiations with Greece broke off at the end of June he supposedly promised Alexis Tsipras an investment package worth €35bn. At first glance this sounded pretty generous, particularly for a country in which, since 2010, the stock of capital has …Read More