To err is human, but persevere with what is wrong is not. However, that is what European leaders and EU economic and financial authorities would like us to do. Since 2010, the number of austerity packages increased in Europe in order to deal with the sovereign debt crisis and to reassure the financial markets. The measures adopted by governments in Europe, as well as European institutions’ recommendations are mainly of …Read More
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Cyprus is currently going through some of the most critical times in its history. The result of the Eurogroup on the 15th of March was a very bad decision, for both Cyprus and Europe. In Cyprus, the decision violates the state deposit guarantee of up to €100,000 and at the same time jeopardizes the whole financial services sector, the only sector which experienced growth in recent years. In Europe, the …Read More
Projections for 2013, as well as for the foreseeable future of the EU, are more than bleak, as it is certain that the economic, social and political crisis of the continent is bound to deepen and intensify, in case that current policies continue. Such a development could result in an unprecedented historic setback for the political and social project that we have been experiencing for decades in Europe. What we …Read More
The Greek citizens have made enormous sacrifices over the last years. But we can now safely argue that this effort has started to yield the first results. As far as fiscal adjustment is concerned, we have already managed to cover 2/3 of the course and we now have one of the lowest fiscal deficits in the Eurozone. The necessary measures have already been legislated for the remaining 1/3; they are …Read More
Since 2011, protests spread in Southern Europe and beyond, while trust in representative institutions dropped at minimal levels. Not only the austerity measures adopted to address national financial crises—which had common origins but took different forms—were contested. What emerged, strong and clear, was a criticism of what was considered to be the corruption of the liberal forms of democracy, face to growing evidence of the creation of small cliques of …Read More
The Italian elections have reminded everyone that the economic crisis has made European publics lose faith in the established political process and they’re looking for something ‘new’. They’ve also helped to turn international attention away from Greece. Indeed, with its second bail-out secured and new tranches of the loans being paid, the ‘plan’ for Athens has been updated and her partners pray it is settled. With 2013 as an election …Read More
Avoiding moral hazard and making sure that tax payers of creditor countries get their money back have brought the concept of conditionality-setting conditions in exchange of financial aid- to the fore. Can it ever be legitimated on the ground, when citizens of bailout countries have to accept austerity programmes in which their governments, let alone parliaments, have had limited input and when they appear to defeat their own purpose by …Read More