Tuesday, 29 November 2011

Eurozone good governance, transparency and democracy

As long as the self-proclaimed leaders of the eurozone reject democratic and sufficient powers at European level, efforts and rumours will concentrate on artificial and ineffective solutions to the euro crisis.

The next European Council (summit) is coming up 9 December 2011, but our national leaders never seem to have the time for a democratic European Union, although they always have time for another eurozone failure.

Popular sovereignty, instead of state sovereignty.

Perhaps my ideas about robust structures and legitimate powers are only romantic mush, so we need to check what other euroblogs dealing with the economy and the eurozone have to say.

Ulrich Beck

Ulrich Beck has understood that the crisis of the euro is not only about money. A Europe of bureaucracy should be turned into a Europe of citizens, he says, before launching a number of test balloons.

Jean Quatremer

Jean Quatremer sees chancellor Angela Merkel as a strict disciplinarian, who refuses to budge on illimited ECB intervention, eurobonds and progress to a federation. Possible treaty negotiations at the 8 and 9 December 2011 summits will only aim for more rigorous budget discipline. On the Coulisses de Bruxelles blog, Quatremer wonders if the markets will be as equanimous as the German chancellor.

Jean Pisani-Ferry

On Bruegel, Jean Pisani-Ferry writes that it is again Germany's best interest to ensure lasting stability in Europe. However, what is likely to emerge from the current negotiations is another layer of largely ineffectual sanctions procedures. Boldness is needed: mutual guarantee and veto powers.

Place du Luxembourg

The Place du Luxembourg blog says that a break-up of the eurozone would be a bad alternative and then proceeds to calm spirits, believing that the issues will be sorted out.

For instance, Wolfgang M√ľnchau was less serene. So are Moody's, the OECD and MarketWatch.

According to Reuters the ”EU summit on Dec. 9 [is] increasingly seen by investors as possibly the last chance to avert a breakdown of the single currency area.”

Herman Van Rompuy

The president of the European Council, Herman Van Rompuy, sent us the following reassuring tweet:

euHvR Herman Van Rompuy 
At 9 Dec. European Council I'll present a roadmap on how to strengthen economic union of the euro area commensurate with our monetary union

I appreciate the good intentions, but wonder when the trillion dollar questions at European level will be prepared according to (at least) the standards of a municipal decision about building a public toilet, so my reply contains a few implicit questions:

RalfGrahn Ralf Grahn 
@euHvR Public would appreciate proposals to discuss and evaluate well in advance (good governance, transparency, democracy). #EUCO

Should we believe the European Economic Policy blog, which said that Euro bonds won't work without a political authority that backs them up, but continued that we have seen over the last week that the EU has no intention of establishing such a government?

Save or no save, is this sustainable?

Ralf Grahn