Archive

Posts Tagged ‘transfer union’

Would Eurobonds be Enough?

October 7, 2013 4 comments

George Soros writes a piece on Project Syndicate, that is both pedagogical and very clear in outlining a possible answer to the current EMU crisis. He starts with a diagnosis of the EMU imbalances that rejects the “Berlin View”, and argues for the existence of structural imbalances

Normally, developed countries never default, because they can always print money. But, by ceding that authority to an independent central bank, the eurozone’s members put themselves in the position of a developing country that has borrowed in foreign currency. Neither the authorities nor the markets recognized this prior to the crisis, attesting to the fallibility of both. Read more

Surrogates of Fiscal Federalism

October 4, 2013 3 comments

We have been distracted by many events in the past few days, and an important document by the Commission did not have the attention it deserves.  In a Communication on the social dimension of the Economic and Monetary Union, sent to the Council on October 2nd, there are a number of very interesting elements. In general, what I find remarkable is the association of deeper social integration with the more general objective of macroeconomic rebalancing. It is never said explicitly, but the Commission stance is that stopping macroeconomic divergence requires more social cohesion and, ultimately, solidarity among Member States. It goes without saying that I find this important and welcome news.

A more specific point on which I want to raise the readers’ attention can be found at page 11  (pdf). It is long, but worth reporting in its entirety: Read more