The EU's "Hamiltonian revolution" is a charade
Dear all,
I've written an article where I debunk claims that the ECB’s new stance, the suspension of the EU's fiscal rules and the much-vaunted 'recovery fund' amount to a long-term revolution in the institutional design of the euro area. The reality is that the architecture of the euro, by its very nature, continues to constrain the spending capacity of governments. Furthermore, the insistence for countries to take money from the EU's official credit lines, including the new “recovery fund”, is clearly not motivated by “European solidarity”. Despite all the fanfare surrounding the Next Generation EU package, the truth is that the latter is macroeconomically irrelevant. In exchange for a pittance, member states will be subject to very strict conditionalities. Indeed, the NGEU funds are conditional on compliance with the European Commission’s infamous country-specific recommendations, which in the past have consistently demanded that governments cut public spending – especially on social expenditure (particularly pensions), healthcare and unemployment benefits. This is ultimately what the NGEU is all about: increasing Brussels’ control over the budgetary policies of member states and strengthening the EU’s regime of technocratic and authoritarian control. So I’d suggest leaving Hamilton to rest.
Best regards,
Thomas Fazi
Website: thomasfazi.net
Twitter: @battleforeurope
Facebook: https://www.facebook.com/thomasfazi
Latest book: Reclaiming the State: A Progressive Vision of Sovereignty for a Post-Neoliberal World (co-authored with Bill Mitchell)