‘Euro Crisis Law’ before the Court of Justice of the EU

JoergesThe ways in which Europe’s economy and the Eurozone are governed have changed fundamentally over the course of the Eurozone crisis. The resulting constitutional constellation is nothing less than a deep transformation of the European project. Christian Joerges, Professor of Law and Society at the Hertie School of Governance in Berlin, looks at how the project of a European economic constitution has been abandoned, and instead replaced by entirely new modes of European economic governance.

The transformation of European economic and political governance patterns (the EU’s constitutional constellation) occurred step by step through what the European University Institute in Florence has named the ‘Euro Crisis Law‘. The German court had asked whether the European Central Bank had overstepped its monetary policy competence with the Outright Monetary Transactions programme (OMT), and interfered with the powers of the Member States in the sphere of economic policy. On 16 June 2015, the Court of Justice of the EU (CJEU) found the ECB’s programme to be legal. Continue reading

Do Not Fear Austerity: A Public Meeting with Yanis Varoufakis

coinsAlessandro de Arcangelis, UCL PhD student in History, reports on a ‘public meeting’ with Yanis Varoufakis, and his advice to Jeremy Corbyn.

It is shortly after 19.00 when the crowd gathered at the Emmanuel Centre in Westminster bursts into a thunderous applause. Former Greek finance minister Yanis Varoufakis walks on stage with unassuming composure. The event, organised on 14 September 2015 by the anti-austerity movement The People’s Assembly, sold out in a matter of hours and dozens of people are standing at the back of the room, patiently waiting to hear the polarizing and often controversial Greek politician’s address.

Hanging above the speakers’ table is a quotation from John 10:10, whose towering presence is made rather apposite by the vibrant left-leaning atmosphere: “The thief cometh not, but for to steal, and to kill, and to destroy: I am come that they might have life, and that they might have it more abundantly”. Beneath it, the panel is impressive: Paul Mackney, former trade union leader; Romayne Phoenix, the chair of the People’s Assembly; James Meadway, New Economics Foundation chief economist;  Rosa Pavanelli, General Secretary of Public Services International; Diane Abbott, Labour MP; and, obviously, Yanis Varoufakis. Rumour has it that the newly elected Labour leader Jeremy Corbyn may eventually arrive to join the other speakers, but he is at the House of Commons, voting against trade union reforms. Continue reading

YES, for our Dignity

In this post, Kalypso Nicolaïdis, Professor of International Relations at Oxford, and Othon Anastasakis, Director of the European Studies Centre, St Antony’s College Oxford, explain how a ‘yes’ vote in tomorrow’s Greek referendum is a choice for dignity rather than fear, as canvassed by the No campaign.

The SYRIZA government claims that a No vote in the referendum is about dignity. A Greece that can say no, no matter the consequences. A Greece that can at last resist creditors’ demands, just as its national heroes of yesterdays resisted the Italian and Nazi invasions.  For many Greeks, – supporters of SYRIZA-ANEL-Golden Dawn – today’s no echoes the OXI in 1940 spelled out with trees on the hillside of Epirus for the advancing enemies to behold. Seventy five years later, they think that will show the world that they can still take the heroic stance.   Against such a no, according to them, the YESes are the cowards, those who accept to be bullied and blackmailed, the German collaborators. In this simple world view, YES means fear. No means pride.

What is wrong with this picture? What is wrong with the “dignified” No? Continue reading

Europe’s Attack on Greek Democracy

Joseph E. Stiglitz, a Nobel laureate in economics and University Professor at Columbia University, was Chairman of President Bill Clinton’s Council of Economic Advisers and served as Senior Vice President and Chief Economist of the World Bank. In this commentary, he describes the true nature of the ongoing debt dispute as being about power and democracy much more than money and economics—and takes a stance on how he would vote in the Greek referendum. This post was first published by Project Syndicate.

The rising crescendo of bickering and acrimony within Europe might seem to outsiders to be the inevitable result of the bitter endgame playing out between Greece and its creditors. In fact, European leaders are finally beginning to reveal the true nature of the ongoing debt dispute, and the answer is not pleasant: it is about power and democracy much more than money and economics.

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Exploring ‘Exploratory Governance’: the Hertie Governance Report 2015

With the Eurozone crisis not yet over, Albert Weale, Professor of Political Theory and Public Policy at UCL, reviews the Hertie Governance Report 2015 as it analyses the key issues facing the European Institutions in terms of economic governance. As ad hoc solutions are found to deal with urgent matters, what does this mean for political accountability and reform in the EU, and what lessons have been learnt?

The European financial and economic crisis since 2008 has overturned the normal workings of the central institutions of the European Union. The policies and practices established in the Maastricht Treaty and the Stability and Growth Pact (SGP) have been transformed in a seemingly endless series of improvised measures. National budgetary and economic policy planning are coordinated through the European Semester. Stronger preventive and corrective procedures are in place through a reinforced SGP. Member States now have a treaty requirement to have automatic correction mechanisms for budgetary deficits. The European Stability Mechanism operates as the de facto bailout mechanism for national governments, a function at one time prohibited by the Maastricht Treaty. The European Central Bank is now engaged in outright monetary transactions, a policy that comes close to monetizing government debt. Banking supervision has been reformed.

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