The Eurozone crisis: no way back

EUROPEANS(…..) III. At this point one can easily see abandoning currency exchange mechanism has a social impact. And creating common currency area means replacing indifference by cooperation and conflict. As the states became guarantors, taxpayers money and taxpayers interests became involved into Eurocrisis. As a result, we observe a transnationalisation of the distributional conflict. It does not replace the national distributional conflicts, but it adds to them. Thus, a complex conflict constellation appeared. Complex conflict constellation is well mirrored by an unclear discourse constellation. In particular, as far as opposition to common currency is concerned, we observe surprising similarities and irritating alliances between the hardly compatible political orientations. Let us take the example of an article published on Open Democracy. Mrs. Ann Pettifor passionately argues in favour of a break up (or of a radical shrinking, this is not really clear) of the Eurozone. This proposal is based on illusions about a golden past, it doesn’t offer any serious diagnosis but just mentions some symptoms of Eurocrisis, what’s worst, replaces an analysis of the consequences of a break up by vague promises. The basic problem of her plea is that she ignores risk of a chain reaction of subsequent and excessive devaluations, hence a devaluation race, causing a giant negative sum game for all participants. All in all: citing one of world’s most successful speculators against a national currency, Soros, to argue for a renationalization of currencies, that’s certainly something. The people of Europe are much more cautious. There is widespread protest in the south against austerity policy, but much less against Euro as such; and there is a lot of reluctance in the north to bail out banks and support corrupt politicians, but much more willingness for the redistribution than generally assumed. Such attitudes seem to be rather rational: nobody can predict the economic and political dynamics of a break up of the Eurozone, any kind of practical test would happen in the case of an emergency. This is the reason why there is no going back. In Greece, only party clearly in favour of leaving Euro is the neo-fascist Golden Dawn. Left wing Syriza advocates better conditions for Greece, but by no means an exit from Euro. In Germany, it is almost exclusively embodied by handful of conservative-liberal economists who recently founded new party named “Alternative für Deutschland”, plus some people like the controversial former German “Centralbanker” Thilo Sarrazin, who advocated a partial or a total renationalization of the currency system in Europe. One can easily see that in the case of the Eurocrisis the distinction between right and left hardly provides any useful orientation. Indeed, it is a big problema there is currently no critical theory of the European integration in sight: a genuine intellectual perspective to criticise the European integration and Eurozone is still missing. In meantime, “Grexit” as patent remedy is all but convincing. Pettifor reports that in an Open letter to the People of Greece she proposed “Greece should exit the Eurozone”. But “the advice was not taken”. Surprise; IV. The meagreness of the arguments of radical Eurosceptics as well as the ambivalent attitudes of the majority of people in Europe towards European integration and Euro are strong signs the common currency is more or less irreversible. There is no doubt that the common currency in its present represents textbook example of incomplete institutionalization, causing severe social problems putting European integration as a whole under stress. Much more likely than its winding up are processes of supplementary institutionalization, contributing to “the social construction of the European society” (…..)



Acerca de ignaciocovelo
Consultor Internacional


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