“European institutions are not the home of rational debate that influences outcomes. But if the rules-are-rules narrative is not replaced it will lead to the break up of the Union.” This has been written among other by Greek Finance Minister Euclid Tsakalotos and posted in Open Democracy.
Here an excerpt
A Europe of two narratives
Everybody, it seems, is concerned about the rise of the radical right. In Europe this concern is tied to a recognition that the EU and the Eurozone face growing centrifugal forces. But any coherent response is crippled by the fact that there are two, almost diametrically opposed, narratives on this phenomenon.
The social narrative, which is mostly, but of course not exclusively, to be found in Southern Europe and on the Left of the political spectrum, argues that Europe is failing a large number of its citizens. Not only did they face the brunt of the crisis, but they have no confidence that they will participate in any recovery. European institutions are stuck in a pre-crisis time zone when the major problems were perceived to be inflation and fiscal irresponsibility.
The result is not only that we are stuck with the most independent of central banks, fixated on the inflation risk, but also a Growth and Stability Pact which acts as a permanent straightjacket. Within the Eurozone matters are worse still. Having relinquished the devaluation option, monetary union has not come up with adequate substitutes in the form of fiscal transfers or other policy instruments.
Europe faces a problem of low growth, high unemployment, and deteriorating infrastructure and social welfare. It needs to be cooperating but on a development agenda which needs a different economic and financial architecture. Without such an agenda, one which can incorporate the concerns of citizens about wages, pensions and benefits, the social narrative concludes that right-wing populists will continue to gain ground as they appeal to the material needs of the centre-left’s and centre-right’s social base.
Rule are rules:
The argument here is that the EU is based on rules and that changing those rules every so often can only undermine the credibility of the European Union and the Euro. Moreover citizens of the North are tired of “bailing-out” those in the South that either cannot or are unwilling to abide by the rules. There are limits to solidarity and any further weakening of the rules provides grist to the mill of the populists.
Full article in Open Democracy
PS Why bother writing long articles in order to explain the obvious? The formula is simple: The Rule and Nothing but the Rule is The Schaeuble’s Rule.
Ayayayaya y The Rule and Nothing But the Rule – The Schaeuble Rule ⛔️ https://t.co/wGXqTRTGzZ
— Keep Talking Greece (@keeptalkingGR) December 28, 2016
A very famous British WWII fighter pilot (Douglas Bader) once said that “rules are for the guidance of the wise, and the blind obedience of fools”. Sounds apt in this case I think?
From a British perspective, most Germans are fools for exactly this reason.
Keep on weeping crocodile tears Euclid! You are happy to play Scheuble’s game against the stated will of the Greek people, for which you and your wife pocket some of the highest salaries in Greece. Part of that game are these “trapped in the system” articles. Go play with the multiple millions in your hedge funds, don’t bother us with your soap opera.
Well said! It is about time to start seeing these little bas**rds for what they are: money pocketing crooks in the payroll of the 4th Reich, its bankers and its money (hedge fund) markets.
But please, leave my dear Euclid alone. He is busy destroying an entire country and he is also …so sensitive…