Friday, July 12, 2013

12/7/2013: Few links on European Federalism

Recently, I wrote about the emergence of federalist movement in Europe and the requirement for federalisation to proceed along the direction and depth consistent with looser, more locally-based and flexible path of Swiss Federalism. The original post is here: http://trueeconomics.blogspot.ie/2013/06/1962013-european-federalism-and-emu.html

In a Project Syndicate article, Hans Helmut Kotz makes a very similar point, including the strong positioning of weaker federalist model as risk management driver for future policies:
http://www.project-syndicate.org/commentary/germany-s-economic-groupthink-by-hans-helmut-kotz

Couple quotes (italics are mine):

"... if the eurozone is to be a sensible long-term proposition, mere survival is not enough. The main justification for a monetary union cannot be the possibly disastrous consequences of its falling apart. Even less convincing is the neo-mercantilist point that the eurozone would allow for indefinite current-account surpluses (it does not)."

"Originally, Europe’s monetary union was supposed to provide a stable framework for its deeply integrated economies to enhance living standards sustainably. It still can. But this requires acknowledging what the crisis has revealed: the eurozone’s institutional flaws. Remedying them calls for a minimum of federalism and commensurate democratic legitimacy – and thus for greater openness to institutional adaptation."


Update: Swiss Confederate system is once again coming up as a model for the EU Federalissation here: http://blogs.lse.ac.uk/europpblog/2013/06/20/the-eu-should-take-inspiration-from-switzerland-in-its-attempts-to-increase-democratic-legitimacy/
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