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YANIS VAROUFAKIS has come up with a three-point plan to avert a post-coronavirus depression, protect all European residents and prevent the … Refusing to share debt across the eurozone threatens the union’s futureMost of continental Europe using the euro is in lockdown. In this video the economist and co-founder of DiEM25 Yanis Varoufakis, examines the socio-economic implications of the Coronavirus. Ignore the headlines about €500bn to rescue Europe.
While you may be reading headlines of an impressive sum of €500bn to rescue Europe, the truth is far less heroic. The It is in the shadow of this riddle that the Eurogroup met on Thursday night. This is equivalent to helping the fallen get up but striking them over the head as they begin to rise.The EU is, of course, a lot more than a monetary area. ist ein unabhängiges und gemeinnütziges Nachrichtenmagazin. Thursday’s Eurogroup verdict, besides being macroeconomically insignificant, was politically irresponsible and a fantastic boon for Eurosceptics in
Just as in the United Kingdom, the United States or Japan, the precipitous falls in private incomes must be counterbalanced by substantial increases in public expenditure. Instead of the 16% of total eurozone income (€2tn) stimulus needed, the eurozone will throw a Before the Eurogroup met, hope was in the air that Europe would, at last, change its rules to save its greatest creation: the European Union. Will we be able to design the future of a new civilization or will politicians and corporations hold on to the extraordinary powers they now have taken. The massive boost in public debt that is now so necessary is hampered by the quaint arrangement of sharing a central bank that, on the one hand, has no common treasury to lean against and, on the other, is banned from backing directly the 19 treasuries that must borrow in euros to fight the crisis. A world renowned artist, Brian Eno, and the former Greek finance minister, Yanis Varoufakis, are raising questions about the social and cultural consequences of the corona pandemic. To counter the oncoming tsunami of bankruptcies, they had to emulate the British, American and Japanese stimuli programmes by channelling approximately 8% of total eurozone income (€1tn) into fresh public expenditure, while also setting aside another such sum for an investment fund to power up the post-Covid-19 recovery. And they had to find a way to avoid circumventing the ban on debt-sharing without which an additional €2tn public expenditure would crush members such as Italy, Spain and Greece thus reviving the spectre of disintegration.On Thursday night, impasse gave way to an agreement. Wenn Sie von der Wichtigkeit gemeinnnütziger und unabhängiger Medien überzeugt sind, unterstützen Sie uns ! No conditions. But, within a year or two, as your economies are recovering, huge new austerity measures will be demanded to bring your government’s finances back into line, including the repayment of the monies spent on your unemployment benefits. DE: Als werbefreie gemeinnützige Medienorganisation verwenden wir Cookies und Skripte, um Ihnen auf unserer Website das beste Nutzererlebnis zu bieten. This video was originally produced by DiEM25 and republished by acTVism Munich in order to create awareness on this issue. Nonetheless, if its economic foundation buckles, powerful centrifugal forces already in play are ready to tear the union apart.
This is, alas, a red herring as the conditions will come later, once the eurozone’s fiscal rules bite again.The message today to Italians, Spaniards and Greeks is: your government can borrow large amounts from Europe’s bailout fund. The only concession to the nine governments suggesting debt-sharing was that the new ESM loans will have no strings attached to them. If governments fail in this, the sum of private and public expenditure (which equals aggregate income) will crash even faster, The challenge facing the 19 countries of the eurozone is unique. acTVism Munich e.V.
Unlike in 2015, when I was alone in the Eurogroup in demanding a common instrument for restructuring public debt, in the past few weeks the governments of eight southern states, plus France, demanded a rethink on debt-sharing without which the eurozone will remain an iron cage of austerity for most and a source of economic stagnation for everyone. It is a peace project, a realm of shared culture, a source of identity and an opportunity to stem toxic nationalism. In fact, the price of reaching the agreement was impotence. Durch die weitere Nutzung unserer Website stimmen Sie der Verwendung zu. The euro crisis that began in 2010 stretched this monetary architecture to its limits.
https://www.actvism.org/opinions/yanis-varoufakis-coronavirus