Tuesday, May 20, 2014

Voters’ resentment suggests that giving the European Parliament more power has not been a reliable route to democratic legitimacy. The parliament has failed in its 35-year strategy of persuading voters to take it seriously by winning an ever growing role.  Europe’s heads of government should stand against its latest power grab, which is to arrogate to itself the right to choose the next European Commission president by getting the main political groups to nominate candidates and refusing to accept any alternative.
If the EU is to gain democratic legitimacy, it will do so not through the European Parliament but through national parliaments. That means giving powers back to them wherever possible, including greater fiscal flexibility and more national control over social policy and employment rules. It also means that national leaders must take responsibility for economic reform, rather than hiding behind the convenient fiction that painful choices are being forced on them by bad people in Brussels or Berlin. Recent experience shows that those who do so can benefit: countries which have made deeper changes at home, such as Spain and Portugal, are now bouncing back more strongly than reform laggards like France and Italy.
At one time Europe seemed to be moving inexorably towards “ever closer union”—and many federalists hoped the euro crisis, like previous crises, would mean another leap forwards. Yet in the wasteland left after the crisis, voters are shaking their pitchforks at the notion of a United States of Europe. Rather than seek to expand the role of the EU’s institutions, it would be better to reinforce the nation-states where legitimacy lies. Europe’s broad strategic direction should be set by heads of government, not by the European Commission, even though that body proposes the detailed laws. The European Parliament should be downgraded, with more democratic control given to national parliaments. If the EU is to survive, it must hand powers back to the people. The European Central Bank could ease monetary policy, including by unconventional means. The European Commission could make a renewed push at completing the single market in services, digital technology and energy, for instance, or could press ahead with a free-trade deal with America,but, a blast of reformist zeal from Brussels would hardly mollify Europe’s disgruntled voters. For one thing, reforms tend to produce short-term pain before long-term gain—one reason why many European governments have found them so hard. For another, voters do not like being pushed around by Eurocrats.
The battle to save the euro has led to the centralisation of powers over banking, taxing and spending; and, while most euro-zone voters want to keep the euro, they have made it quite clear that they oppose the accretion of ever more intrusive powers to the ECB, the European Commission and the European Parliament. The EU’s abandoned constitution and its successor, the Lisbon treaty, were together rejected in three out of six referendums; ten governments broke promises rather than hold votes on the final version. In France, a founding member, the EU today attracts even more resentment than it does in famously Eurosceptic Britain. The populists’ appeal in the European elections is based largely on rising hostility to interference by Brussels.
This is an issue of democracy, not of economics. Voters are not impressed when they toss out an incumbent government only to be told by the EU that its replacement must stick to the same fiscal rules and economic policies. Since the transfer of powers to the centre has come about as a result of economic failure, and not of broader political debate or of resounding success, the chances of its being meekly accepted are slim.


3 comments:

Anonymous said...

What, what? America has gone from the most loved in the world to the most hated because of Obama. It is all his fault-bowing to idiots of the world, jacking up the debt, returning gifts to our friends and being friendly to our enemies on and on. Obama is to blame for everything. May I also say that when the troops were ordered to "stand down" and not protect our Ambassador Stevens, it was done by Obama. The president is the ONLY one that can order a "stand down."
When Obama goes full blown trouble will stop, but there will be massive trouble left over from his debt, his killing jobs and killing American's health.

Anonymous said...

America has gone from the most LOVED in the World to the most HATED in the World as a direct result of the WAR Mongering JEWS.
There is only ONE group of TERRORISTS in the World today and they are the Synagogue of Satin WAR MONGERING JEWS.
FREEDOM Fighters World Wide it’s time to UNITE.

Anonymous said...

The IMF riot is painfully predictable. When a nation is, "down and out, [the IMF] takes advantage & squeezes the last pound of blood out of them. They turn up the heat until, finally, the whole cauldron blows up," as when the IMF eliminated food & fuel subsidies for the poor in Indonesia in 1998. Indonesia exploded into riots, but there are other examples - the Bolivian riots over water prices last year & this February, the riots in Ecuador over the rise in cooking gas prices imposed by the WB. You'd almost get the impression that the riot is written into the plan.

And it is. What Stiglitz did not know is that, while in the States, BBC and The Observer obtained several documents from inside the WB, stamped over with those pesky warnings, "confidential," "restricted," "not to be disclosed." Let's get back to one: the "Interim Country Assistance Strategy" for Ecuador, in it the Bank several times states - with cold accuracy - that they expected their plans to spark, "social unrest," to use their bureaucratic term for a nation in flames.

That's not surprising. The secret report notes that the plan to make the US dollar Ecuador's currency has pushed 51% of the population below the poverty line. The WB "Assistance" plan simply calls for facing down civil strife & suffering with, "political resolve" - & still higher prices.

The IMF riots (& by riots I mean peaceful demonstrations dispersed by bullets, tanks & teargas) cause new panicked flights of capital and government bankruptcies. This economic arson has it's bright side - for foreign corporations, who can then pick off remaining assets, such as the odd mining concession or port, at fire sale prices.