Yanis Varoufakis on saving the EU

I found this TED talk of Yanis Varoufakis on his point of you of the key issues of  the EU.

He states that the current crisis is not a good time for federalisation, as, as he sees it, EU is collapsing on itself. I am not sure if I agree or not with him, but there are some interesting points:

  • there is a need of aggregate/common banking sector, (current) debt management, and investment; this means, that for the financial issues, Europe is seen as a whole.
  • strengthen national sovereignty, and make every country more responsible, not to hide under the EU rules, law, etc.

This way all EU countries will be able to run on balanced budgets and will learn to live within their means. When you put the money question of the table, countries may be able to focus on their “core business” – creating a safe and productive environment for their citizens.

It sounds a lot like how USA were forged. There was a federal government, in charge of fiscal issues, and there were semi-sovereign states, which could run their policies as they wished, but on the demand of having a balanced budget. If an asymmetric crisis struck one of the states, the others shared the burden via the common financial market, helping the poor one out.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s