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The left-sovereigntist fantasy: A response to William Mitchell and Thomas Fazi

October 24, 2017 by andrew36 Leave a Comment

William Mitchell and Thomas Fazi (WM/TF) have written a piece that – under the presumptuous title of Everything you know about neoliberalism is wrong – offers a critique of the idea that nation states need to pool sovereignty in order to enact progressive policies and makes a plea for a “progressive emancipatory vision of national sovereignty”.  It has attracted some favourable attention, not least from colleagues at Eurointelligence. I consider that unfortunate, for the analysis fails, in my view, in both goals. It does not convincingly discredit the view that pooling sovereignty is a sensible response to the constraints imposed by globalisation. Nor does it make the case for a specifically left-wing strategy of enhanced national sovereignty, traditionally the mantra of the hard right, that might endear it to progressive politicians and academics.

The article alone would not necessitate a response: I am well aware that textual analyses do not make racy reading. But given the increasing hold of such ideas on parts of the European Left – some elements of which are taking positions indistinguishable from the extreme right – while social democracy is visibly searching for new ideas, the arguments made are important and a critical analysis is in order.

The piece starts with a statement of what the authors see as the “conventional wisdom” (to be debunked), namely that globalisation undermines national sovereignty and therefore “our only hope of achieving any meaningful change is for countries to ‘pool’ their sovereignty together and transfer it to supranational institutions (such as the European Union) that are large and powerful enough to have their voices heard, thus regaining at the supranational level the sovereignty that has been lost at the national level”. That is a clear and accurate statement. What, according to WM/TF, is wrong with it? [Read more…]

Filed Under: Analysis Tagged With: depoliticisation, EU, globalisation, national sovereignty, nationalism, neoliberalism, Social Europe, soveeignty pooling, sovereigntism, Thomas Fazi, William Mitchell

Wolfgang Schäuble’s poisoned parting gift to the Euro Area

October 11, 2017 by andrew36 1 Comment

Those who wish to leave – so a German saying – you should not seek to dissuade from so doing. To few people is the phrase more applicable than to Wolfgang Schäuble who is resigning the post of German finance minister and, with it, that of de facto head of the Euro Group. He held these roles since 2009,  that is virtually since the onset of the Euro Area crisis. While the crisis and the associated double-dip recession was a failure that had many fathers, Dr. Schäuble was arguably the most wanton of those who, to paraphrase Keynes, blundered in the control of a delicate machine, the working of which he does not understand.

On the other hand, the fact that someone who has caused much harm is leaving an influential post does not mean that his or her influence falls to zero. His arty certainly remains the dominant force in German politics. Nor, alas, does it necessarily mean that the successor will be an improvement: it seems likely that he or she will come from the liberal FDP which campaigned on a manifesto of rejecting any form of transfers or bail-outs, and threatening countries that fail to meet tough fiscal targets with being forced out of the single currency.

At his last Eurogroup meeting the departing German finance minister left a chilling message of his own in the form of a short non-paper on European economic policy. I will go through point by point, but the spoiler is simple: it represents a doubling down of believers in Maastricht and a complete rejection of all the risk-sharing and stability-promoting ideas tabled by the European authorities and, most vividly, by French President Macron. [Read more…]

Filed Under: Analysis Tagged With: ECB, EMU, Eurogroup, finance minister, fiscal capacity, Germany, Juncker, Macron, non-paper, risk-free assets, state insolvency, Wolfgang Schäuble

German elections: a Caribbean hurricane for Europe?

September 25, 2017 by andrew36 Leave a Comment

The Caribbean has been in the news lately for a succession of damaging hurricanes. Yesterday’s German elections seem almost certain to lead to a so-called Jamaica coalition between Mrs. Merkel’s conservatives (CDU/CSU), the liberal FDP and the Greens. (The party colours, black, yellow, green, are those of the island’s national flag). Is Europe in for stormy times? It certainly looks like it.

The debate on reforming the EU and especially the Euro Area is at a critical phase. There has been a flurry of proposals and reflection papers from the EU Commission and think-tanks. Jean-Claude Juncker’s recent State of the EU speech held out the prospect of a push towards deepening EMU. The new French President, Emmanuel Macron, has embarked on domestic reforms, part of the rationale of which is to open up space for Euro Area governance reforms. A speech on this issue is scheduled for this week. Everyone has been waiting for the German elections.

And now this. [Read more…]

Filed Under: Analysis Tagged With: CDU/CSU, ECB, economic policy, elections, Euro Area, FDP, Germany, Jamaica, Juncker, Macron, Merkel, Schäuble, SDP, Weidmann

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