sábado, 17 de maio de 2014
FT - The Eurozone won the war, now it needs to win the peace - An opinative overview
The visionary ideal of an ever closer union ultimately leading to a true European Union remains as far-fetched as ever since current woes began triggered by the financial meltdown.
While apparently the sovereign debt crisis is headed for closure where it manifested harshest, there are far more questions than answers as to the future contours of a mutually advantageous monetary union.
The Eurozone comprises 18 economies whose differences are relevant not least amongst the big 3: Germany, France and Italy - for the incoming European Commission and Parliament to take very serious note of.
And eventually adopt a new approach to the entire European edifice.
On every ground one can think of it is unacceptable to tie countries down indefinitely, leaving them to fend for themselves and yet share a single currency. A currency that objectively does not bring gains to their respective economies.
With so many formerly readily available monetary policy tools having been removed there is no leeway left in these countries to manage their own economic cycles.
Portugal is a good case in point. The country officially exits the bailout programme today without any cautionary safety net. There are reasons to rejoice at progress made restoring external balances, reducing the size of the State, sharpening the export sector and, perhaps, making the surviving economy leaner. These gains were achieved, inevitably to a degree, at an overwhelming social cost.
For Democracy's sake it is up to politics at national and European level to do 'whatever it takes' to mend societies hit hardest.
This needs to be done concurrently with every action taken to ensure that the ECB saved Euro works to the benefit of all countries sharing it, if not equally at least tangibly to most citizens.
Prolonged economic stagnation wherever is not an option by any seasoned yardstick.