Janssen, Ronald, (2015), “How Germany Gains From The Euro While Others Pay”, Social Europe Journal, 27 September One of its main ideas is that the euro area lacks a procedure that could declare member states bankrupt when having lost access to financial markets. This makes the restructuring of unsustainably high debt burdens even more complicated than it is. Schäuble’s non-paper even uses the Greek crisis to argue that this situation …Read More
Can We Stop The Fragmentation Of Europe?
Dervis, Kemal, (2015), “Can We Stop The Fragmentation Of Europe?”, Social Europe Journal, 22 September The European Union’s economic crises of the last half-decade have fueled the emergence of a deep divide between the northern creditor countries and the southern debtors. Now Europe’s migrant crisis is creating an east-west divide between the countries that are welcoming toward the ongoing influx of refugees, and those who want to do little, or …Read More
Should Germany Leave the Euro?
Heise, Michael, (2015), “Should Germany Leave the Euro?”, Project Syndicate, 9 September The debate about whether Greece should leave the eurozone has revived the idea that Germany, and other similarly strong economies, would best serve the rest of the continent if they were the ones to exit the monetary union. But, though that notion may win some applause, implementing it would be shortsighted, impractical, and economically dubious. Relevant Posts Sachs, Jeffrey, …Read More
Cereals, appropriability, and hierarchy
Mayshar, Joram, Moav, Omer, Neeman, Zvika, Pascali, Luigi, (2015), “Cereals, appropriability, and hierarchy”, Voxeu, 11 September Conventional theory suggests that hierarchy and state institutions emerged due to increased productivity following the Neolithic transition to farming. This column argues that these social developments were a result of an increase in the ability of both robbers and the emergent elite to appropriate crops. Hierarchy and state institutions developed, therefore, only in regions where appropriable cereal crops had sufficient productivity advantage …Read More
The Dialectics Of European Integration – A New Push For A Federal EMU?
Watt, Andrew, (2015), “The Dialectics Of European Integration – A New Push For A Federal EMU?”, Social Europe Journal, 2 September Whatever else they might disagree about, just about everybody commenting on Europe agree about this: the succession of crises – financial, economic, fiscal, and now refugees – have set Europe’s peoples against one another. Nationalist and racist parties are gaining strength on the Right – with a real risk of …Read More
Democratizing the Eurozone
Varoufakis, Yanis, (2015), “Democratizing the Eurozone”, Project Syndicate, 1 September. Like Macbeth, policymakers tend to commit new sins to cover up their old misdemeanors. And political systems prove their worth by how quickly they put an end to their officials’ serial, mutually reinforcing, policy mistakes. Judged by this standard, the eurozone, comprising 19 established democracies, lags behind the largest non-democratic economy in the world. Relevant Posts Βulmer, S., (2014), “Germany and …Read More
Dutch drama over Greek crisis
Pardijs, Dina, (2015), “Dutch drama over Greek crisis”, European Council on Foreign Relations, 24 Αυγούστου The Greek crisis may have claimed an unexpected new victim: Dutch Prime Minister Mark Rutte. In a five hour debate last week on the Dutch support for the latest bailout for Greece, the leader of the largest government party VVD was attacked by members of parties from across the political spectrum.The man who is often …Read More
Germany is stuck with a crisis it did not foresee and can no longer control
Snaith, Holly, Nedergaard, Peter, (2015), “Germany is stuck with a crisis it did not foresee and can no longer control”, LSE blog, 25 Αυgust Germany is often described as a ‘reluctant hegemon’ in the sense that it has found itself pushed to the centre of EU affairs by the Eurozone crisis. Peter Nedergaard and Holly Snaith write that the increasing importance of Germany in the EU has resulted in a particular brand …Read More
The Euro Needs More Than Just One (German) Economic Policy Tool To Work
Amari, Giuseppe, (2015), “The Euro Needs More Than Just One (German) Economic Policy Tool To Work”, Social Europe Journal, 20 Αυgust Recently, at the height of the Greek drama, an editorial appeared in Corriere della Sera, entitled: ‘There is no Europe without the Euro, There is no Euro without Europe’. The first statement is both an historical and present falsehood, the second is a banality not worth commenting on. The euro has …Read More
Wolfgang Schäuble, Debt Relief, and the Future of the Eurozone
Mody, Ashoka, (2015), “Wolfgang Schäuble, Debt Relief, and the Future of the Eurozone”, Bruegel publications, 6 August The reason Schäuble is concerned is that the carefully constructed but fragile crisis management system—intended to insulate Germany from paying the bills of others—is now under threat. If Greece creates a precedent, then either the crisis management system goes, or a transfer union is effectively in place, with Germany on the hook. Hence …Read More