A Quick Guide to the Euro Crisis

by Iain Murray

Yesterday afternoon, I had the pleasure of attending a stimulating panel at the American Enterprise Institute on the success — or otherwise — of the EU summit last week. You can see the video here, and I particularly recommend the contributions of Michael Greve and Alex Pollock. I was astonished that it took nearly an hour for someone (Michael) to mention the problem of democratic legitimacy, hence a question I asked at the end (it’s on the full video at 1:51 and a bit). The technocratic answer from the German representative on the panel was, I have to say, wholly unconvincing. Michael handled it much better.

As it happened, I had just written a handy-dandy quick guide to the crisis for American Spectator readers, which you can read here. An excerpt:

 What Did the EU Actually Agree to at its Recent Summit?

Good question. The actual results of the summit were somewhat overshadowed by British Prime Minister David Cameron’s refusal to join in the Eurozone’s suicide pact. Indeed, that’s what was agreed — a suicide pact, not the advertised fiscal union. The heads of government that joined in the pact agreed that they would balance their budgets, which are to be policed by the unelected, unaccountable European Commission. This does nothing to solve the euro’s structural problems and rides roughshod over the entire principle of democracy (as I have noted elsewhere). The result will be a devastating, long-term recession in the periphery of Europe, and presumably popular revolt in several countries. Sadly, those popular revolts are more likely to be of the socialist variety than revolutions for liberty.

Was my opinion changed by yesterday’s panel? Not one bit…

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