EuroMemo Group ~ The European Union: The Threat Of Disintegration


Introduction
The crisis of the European Union (EU) is multifaceted and has visibly deepened during the last year. The British referendum on EU membership and the vote in favour of Brexit have only been the most explicit symptom of the disintegrative tendencies. The core-periphery rift in the euro area has continued. The arrival of a large number of refugees from the war-torn areas of the Middle East has resulted in acrimonious conflicts in the EU on the question who should take care of them. The way in which the pro-free trade forces pushed through the Comprehensive Economic and Trade Agreement (CETA) with Canada showed utter disregard for the objections of democratically elected bodies (e.g. the Belgian regions of Wallonia and Brussels).

In face of the multiple crisis of the EU, there is a relatively large consensus ranging from Social Democrats to right-wing nationalist forces to seek a flight forward towards an increasing militarisation of the EU. Otherwise, different strategies to deal with the crises can be discerned. The predominant response is muddling through. It is privileged by the majority of Christian Democrat, Social Democrat and liberal forces. This strategy continues the neoliberal mode of integration and seeks to preserve the present geographic shape of the euro area and the Schengen Zone. It will most probably not prevent the deepening of the disintegration tendencies. There are two sub-varieties of muddling through. One aims to combine it with more fiscal flexibility and more public investment. It is mainly advocated by Social Democrat forces in France and the Mediterranean. The other subvariety abandons the integrity of the Schengen Zone and rather advocates a smaller Schengen Zone with tighter border controls. It is favoured by a relatively broad range of forces particularly in Germany, Austria and Central Eastern Europe. A ‘core Europe’ conception with a smaller and more compact euro area is advocated by right-wing nationalist forces like Lega Nord in Italy, Freiheitliche Partei Österreichs (FPÖ) in Austria and Alternative für Deutschland (AfD) in Germany as well as some Christian Democrat currents. On the right of the political spectrum, there are finally ‘Europe of Nations’ concepts. They tend to advocate focusing European integration on the Single Market and linked economic regulations. The nationalist right-wing demands more spaces of national competitive strategies. Right-wing nationalist parties, like Fidesz in Hungary and Prawo i Sprawiedliwość (PiS) in Poland, regard regional funds as an essential element of integration. Some forces of the nationalist right even tend towards leaving the EU.

On the political left, there are divergent strategies as well. Some forces advocate a form of democratic European federalism. The political presuppositions of such a project are extremely demanding. Other left-wing forces do not regard democratic European federalism as a realist solution and see the EU institutions as being particularly strongly shielded against popular pressures. They propose an explicitly pro-social agenda and defying EU regulations and abandoning the euro area if this is necessary to bring about progressive policy changes. Read more

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Europäische Ökonomen sehen ernste Gefahren für die europäische Integration

For the complete text – in English – go to (PDF): The European Union: The Threat Of Disintegration

Die Arbeitsgruppe Europäische Wirtschaftswissen schaftlerInnen für eine andere Wirtschaftspolitik in Europa (EuroMemo Group) veröffentlicht am Dienstag, den 24. Januar 2017, das EuroMemorandum 2017 “The European Union: The Threat of Disintegration.” 270 Ökonomen und Sozialwissenschaftler aus ganz Europa fordern darin gemeinsam einen radikalen Kurswechsel in der europäischen Wirtschafts- und Sozialpolitik.

Das EuroMemorandum 2017 offenbart ernste Gefahren für die Integration Europas: Die Polarisierung zwischen den europäischen Kernländern und der Peripherie hält an. Der Umgang mit der großen Zahl an Flüchtlingen hat zu erbitterten Konflikten innerhalb der EU geführt und die Durchsetzung des europäisch-kanadischen Freihandelsabkommens CETA machte eine völlige Gleichgültigkeit gegenüber Einwänden von demokratisch gewählten Organen deutlich. Der Brexit war nur das klarste Zeichen der Gefahren für die europäische Integration.

Die wirtschaftlichen Aussichten Europas sind weiterhin düster: Während sich die Eurozone noch lange nicht nachhaltig erholt hat, erhöhen die nachlassende weltweite Konjunktur und der Brexit die Unsicherheit noch mehr. Die zaghaften Bestrebungen der EU-Politik wie der Juncker Plan und der etwas größere fiskalpolitische Spielraum für die Mitgliedsstaaten sind bei weitem nicht ausreichend. Das EuroMemorandum 2017 fordert eine koordinierte Wirtschaftspolitik, die statt auf ausgeglichene Haushalte auf eine ausgeglichene Volkswirtschaft mit hoher Beschäftigung und den Abbau von regionalen Ungleichheiten setzt. Eine effektive Fiskalpolitik auf EU-Ebene, die in der Lage ist, Abschwünge auf EU-, nationaler und regionaler Ebene zu bremsen, und eine langfristige Investitionsstrategie sind notwendig. Strategische Lohnzuwächse würden eine gerechte Teilhabe der Arbeiter am Wachstum und stabile Inflationsraten ermöglichen. Dem Steuerwettbewerb muss eine Ende bereitet werden.

Zwar haben die deutliche Niedrigzinspolitik und die unkonventionellen geldpolitischen Maßnahmen der EZB angesichts der restriktiven Fiskalpolitik höchstwahrscheinlich einen vollkommen wirtschaftlichen Zusammenbruch infolge der Finanzkrise verhindert, doch stößt diese Politik zunehmend an ihre Grenzen. Auch ist die geplante Kapitalmarktunion kaum in der Lage, einen maßgeblichen wirtschaftlichen Anstoß zu geben und gerät infolge des Brexit ins Ungewisse, da die britischen Finanzmärkte ganz klar als Zentrum des Wertpapierhandels vorgesehen waren. Unter Vorraussetzung einer koordinierten expansiven Fiskal- und Investitionspolitik fordert das EuroMemorandum 2017 daher eine “Normalisierung” der Geldpolitik mit niedrigen, aber positiven Zinsraten.

Auch im Hinblick auf die Flüchtlingsmigration zeigt das EuroMemorandum 2017 auf, dass der Druck auf die gesellschaftlichen Ressourcen vielmehr auf die jahrelang vernachlässigte staatliche Grundversorgung in den EU-Ländern zurückzuführen ist. Finanzierungsmodelle für die Integration von Flüchtlingen und EU-Migranten, die gleichzeitig den Volkswirtschaften der Zielländer zugutekommen, sind ganz klar möglich. Das Solidaritätsprinzip innerhalb der EU bietet eine Grundlage, um populistischen fremdenfeindlichen Positionen zu begegnen.

Die Krise der EU begünstigte den Anstieg rechtsorientierter Kräfte in Europa, die sich vom nationalliberal-konservativen bis ins faschistische Spektrum erstrecken. Wirtschaftspolitisch sind die Programme der jeweiligen Parteien eher neoliberal, teilweise in Verbindung mit national-konservativen und auch heterodoxen Elementen, ausgerichtet. Klar ist die Präferenz nationaler gegenüber europäischer Lösungen. Im Zentrum der Forderungen des EuroMemorandums 2017 stehen vielmehr inklusive Reformen, die soziale und wirtschaftliche Ungleichheiten abbauen. Der territoriale Rahmen ist dabei nicht Ausgangspunkt und sollte danach bestimmt werden, wo die größten Erfolgschancen sind. In der Tat ist dies oft eher die nationale als die EU-Ebene. Angesichts der strikten institutionellen Beschränkungen innerhalb der Eurozone, müssen auch Austrittsstrategien erwogen werden.

Während die Verhandlungen zum transatlantischen Freihandelsabkommen TTIP zeitweise ausgesetzt wurden, geriet das europäisch-kanadischen Freihandelsabkommen CETA ins Zentrum der Aufmerksamkeit. Doch ist CETA im Hinblick auf Demokratie und Rechtsstaatlichkeit genauso rückschrittlich wie TTIP. Auf Ebene der Mitgliedsstaaten sollte versucht werden, die noch ausstehende Ratifizierung von CETA durch die nationalen Parlamente zu verhindern. Im Hinblick auf die Europäische Nachbarschaftspolitik sollten statt weitreichendem Freihandel, untergeordneter Integration und Militarisierung, beiderseitig vorteilhafte Kooperationen zum Beispiel auf Branchenebene eingegangen werden.

Das EuroMemorandum ist eine jährlich erscheinende Publikation der EuroMemo Group, in der aktuelle wirtschaftliche Entwicklungen in Europa kritisch analysiert und Alternativen aufgezeigt werden. Die EuroMemo Group ist ein Netzwerk von Ökonomen aus ganz Europa mit dem Ziel, darzustellen, dass es eine wirtschaftlich nachhaltige und sozial gerechtere Alternative zu neoliberalen Liberalisierungsmaßnahmen gibt.

Mehr Informationen über die EuroMemo Group finden Sie unter www.euromemo.eu

Kontakt
Stefanie Marie Scholz, M. Sc.
Koordination der EuroMemo Group
E-mail: info@euromemo.eu

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Noam Chomsky On The Long History Of US Meddling In Foreign Elections

Noam Chomsky

A wide range of politicians and media outlets have described the alleged Russian interference in the last US presidential election (by way of hacking) as representing a direct threat to American democracy and even to national security itself. Of course, the irony behind these concerns about the interference of foreign nations in the domestic political affairs of the United States is that the US has blatantly interfered in the elections of many other nations, with methods that include not only financial support to preferred parties and the circulation of propaganda but also assassinations and overthrows of even democratically elected regimes. Indeed, the US has a long criminal history of meddling into the political affairs of other nations — a history that spans at least a century and, since the end of World War II, extends into all regions of the globe, including western parliamentary polities. This interview with Noam Chomsky reminds us that the United States is no stranger to election interference; in fact, it is an expert in this arena.

C. J. Polychroniou: Noam, the US intelligence agencies have accused Russia of interference in the US presidential election in order to boost Trump’s chances, and some leading Democrats have actually gone on record saying that the Kremlin’s canny operatives changed the election outcome. What’s your reaction to all this talk in Washington and among media pundits about Russian cyber and propaganda efforts to influence the outcome of the presidential election in Donald Trump’s favor?

Noam Chomsky: Much of the world must be astonished — if they are not collapsing in laughter — while watching the performances in high places and in media concerning Russian efforts to influence an American election, a familiar US government specialty as far back as we choose to trace the practice. There is, however, merit in the claim that this case is different in character: By US standards, the Russian efforts are so meager as to barely elicit notice.

Let’s talk about the long history of US meddling in foreign political affairs, which has always been morally and politically justified as the spread of American style-democracy throughout the world.

The history of US foreign policy, especially after World War II, is pretty much defined by the subversion and overthrow of foreign regimes, including parliamentary regimes, and the resort to violence to destroy popular organizations that might offer the majority of the population an opportunity to enter the political arena.

Following the Second World War, the United States was committed to restoring the traditional conservative order. To achieve this aim, it was necessary to destroy the anti-fascist resistance, often in favor of Nazi and fascist collaborators, to weaken unions and other popular organizations, and to block the threat of radical democracy and social reform, which were live options under the conditions of the time. These policies were pursued worldwide: in Asia, including South Korea, the Philippines, Thailand, Indochina and crucially, Japan; in Europe, including Greece, Italy, France and crucially, Germany; in Latin America, including what the CIA took to be the most severe threats at the time, “radical nationalism” in Guatemala and Bolivia.

Sometimes the task required considerable brutality. In South Korea, about 100,000 people were killed in the late 1940s by security forces installed and directed by the United States. This was before the Korean war, which Jon Halliday and Bruce Cumings describe as “in essence” a phase — marked by massive outside intervention — in “a civil war fought between two domestic forces: a revolutionary nationalist movement, which had its roots in tough anti-colonial struggle, and a conservative movement tied to the status quo, especially to an unequal land system,” restored to power under the US occupation. In Greece in the same years, hundreds of thousands were killed, tortured, imprisoned or expelled in the course of a counterinsurgency operation, organized and directed by the United States, which restored traditional elites to power, including Nazi collaborators, and suppressed the peasant- and worker-based communist-led forces that had fought the Nazis. In the industrial societies, the same essential goals were realized, but by less violent means.
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Noam Chomsky: The US Health System Is An “International Scandal” ~ And ACA Repeal Will Make It Worse

Changes are coming to America’s health care system. Not long from now, the Affordable Care Act could be history. President-elect Donald Trump wants to repeal so-called Obamacare, although he is now urging Republicans to repeal and replace it at the same time. But replace it with what?

The political culture of the most powerful nation in the world is such that it vehemently defends the right of people to buy guns but opposes the right to free and decent health care for all its citizens. In all likelihood, the Trump health care plan will be one based on “free market principles.” Under such a plan, as Noam Chomsky notes in the interview for Truthout that follows, poor people are likely to suffer most. In other words, the scandalous nature of the US health care system is bound to become even more scandalous in the Trump era. Welcome back to the future.

C.J. Polychroniou: Trump and the Republicans are bent on doing away with Obamacare. Doesn’t the 2010 Patient Protection and Affordable Care Act (ACA) represent an improvement over what existed before? And, what would the Republicans replace it with?

Noam Chomsky: I perhaps should say, to begin, that I have always felt a little uncomfortable about the term “Obamacare.” Did anyone call Medicare “Johnsoncare?” Maybe wrongly, but it has seemed to me to have a tinge of Republican-style vulgar disparagement, maybe even of racism. But put that aside…. Yes, the ACA is a definite improvement over what came before — which is not a great compliment. The US health care system has long been an international scandal, with about twice the per capita expenses of other wealthy (OECD) countries and relatively poor outcomes. The ACA did, however, bring improvements, including insurance for tens of millions of people who lacked it, banning of refusal of insurance for people with prior disabilities, and other gains — and also, it appears to have led to a reduction in the increase of health care costs, though that is hard to determine precisely.

The House of Representatives, dominated by Republicans (with a minority of voters), has voted over 50 times in the past six years to repeal or weaken Obamacare, but they have yet to come up with anything like a coherent alternative. That is not too surprising. Since Obama’s election, the Republicans have been pretty much the party of NO. Chances are that they will now adopt a cynical [Paul] Ryan-style evasion, repeal and delay, to pretend to be honoring their fervent pledges while avoiding at least for a time the consequences of a possible major collapse of the health system and ballooning costs. It’s far from certain. It’s conceivable that they might patch together some kind of plan, or that the ultra-right and quite passionate “Freedom Caucus” may insist on instant repeal without a plan, damn the consequence for the budget, or, of course, for people.

One part of the health system that is likely to suffer is Medicaid, probably through block grants to states, which gives the Republican-run states opportunities to gut it. Medicaid only helps poor people who “don’t matter” and don’t vote Republican anyway. So [according to Republican logic], why should the rich pay taxes to maintain it?

Article 25 of the UN Universal Declaration on Human Rights (UDHR) states that the right to health care is indeed a human right. Yet, it is estimated that close to 30 million Americans remain uninsured even with the ACA in place. What are some of the key cultural, economic and political factors that make the US an outlier in the provision of free health care?

First, it is important to remember that the US does not accept the Universal Declaration of Human Rights — though in fact the UDHR was largely the initiative of Eleanor Roosevelt, who chaired the commission that drafted its articles, with quite broad international participation.

The UDHR has three components, which are of equal status: civil-political, socioeconomic and cultural rights. The US formally accepts the first of the three, though it has often violated its provisions. The US pretty much disregards the third. And to the point here, the US has officially and strongly condemned the second component, socioeconomic rights, including Article 25.
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Trump’s America And The New World Order: A Conversation With Noam Chomsky

Noam Chomsky ~ Photo: en.wikipedia.org

For the prelude to this interview, read yesterday’s conversation with Noam Chomsky on “Trump and the Flawed Nature of US Democracy“, which exposes the pitfalls of the political system that made Trump’s rise to power a reality.

Are Donald Trump’s selections for his cabinet and other top administration positions indicative of a man who is ready to “drain the swamp?” Is the president-elect bent on putting China on the defensive? What does he have in mind for the Middle East? And why did Barack Obama choose at this juncture — that is, toward the end of his presidency — to have the US abstain from a UN resolution condemning Israeli settlements? Are new trends and tendencies in the world order emerging? In this exclusive Truthout interview, Noam Chomsky addresses these critical questions just two weeks before the White House receives its new occupant.

C.J. Polychroniou: Noam, the president-elect’s cabinet is being filled by financial and corporate bigwigs and military leaders. Such selections hardly reconcile with Trump’s pre-election promises to “drain the swamp,” so what should we expect from this megalomaniac and phony populist insofar as the future of the Washington establishment is concerned?
Noam Chomsky: In this respect — note the qualification — Time magazine put it fairly well (in a Dec. 26 column by Joe Klein): “While some supporters may balk, Trump’s decision to embrace those who have wallowed in the Washington muck has spread a sense of relief among the capital’s political class. ‘It shows,’ says one GOP consultant close to the President-elect’s transition, ‘that he’s going to govern like a normal Republican’.”

There surely is some truth to this. Business and investors plainly think so. The stock market boomed right after the election, led by the financial companies that Trump denounced during his campaign, particularly the leading demon of his rhetoric, Goldman Sachs. According to Bloomberg News, “The firm’s surging stock price,” up 30 percent in the month after the election, “has been the largest driver behind the Dow Jones Industrial Average’s climb toward 20,000.” The stellar market performance of Goldman Sachs is based largely on Trump’s reliance on the demon to run the economy, buttressed by the promised roll-back in regulations, setting the stage for the next financial crisis (and taxpayer bailout). Other big gainers are energy corporations, health insurers and construction firms, all expecting huge profits from the administration’s announced plans. These include a Paul Ryan-style fiscal program of tax cuts for the rich and corporations, increased military spending, turning the health system over even more to insurance companies with predictable consequences, taxpayer largesse for a privatized form of credit-based infrastructure development, and other “normal Republican” gifts to wealth and privilege at taxpayer expense. Rather plausibly, economist Larry Summers describes the fiscal program as “the most misguided set of tax changes in US history [which] will massively favor the top 1 per cent of income earners, threaten an explosive rise in federal debt, complicate the tax code and do little if anything to spur growth.”

But, great news for those who matter.

There are, however, some losers in the corporate system. Since November 8, gun sales, which more than doubled under Obama, have been dropping sharply, perhaps because of lessened fears that the government will take away the assault rifles and other armaments we need to protect ourselves from the Feds. Sales rose through the year as polls showed Clinton in the lead, but after the election, the Financial Times reported, “shares in gun makers such as Smith & Wesson and Sturm Ruger plunged.” By mid-December, “the two companies had fallen 24 per cent and 17 per cent since the election, respectively.” But all is not lost for the industry. As a spokesman explains, “To put it in perspective, US consumer sales of firearms are greater than the rest of the world combined. It’s a pretty big market.”

Normal Republicans cheer Trump’s choice for Office of Management and Budget, Mick Mulvaney, one of the most extreme fiscal hawks, though a problem does arise. How will a fiscal hawk manage a budget designed to massively escalate the deficit? In a post-fact world, maybe that doesn’t matter.

Also cheering to “normal Republicans” is the choice of the radically anti-labor Andy Puzder for secretary of labor, though here too a contradiction may lurk in the background. As the ultrarich CEO of restaurant chains, he relies on the most easily exploited non-union labor for the dirty work, typically immigrants, which doesn’t comport well with the plans to deport them en masse. The same problem arises for the infrastructure programs; the private firms that are set to profit from these initiatives rely heavily on the same labor source, though perhaps that problem can be finessed by redesigning the “beautiful wall” so that it will only keep out Muslims.
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Trump And The Flawed Nature Of US Democracy: An Interview With Noam Chomsky

Noam Chomsky

Trump’s presidential victory exposed to the whole world the flawed nature of the US model of democracy. Beginning January 20, both the country and the world will have to face a political leader with copious conflicts of interest who considers his unpredictable and destructive style to be a leadership asset. In this exclusive interview for Truthout, world-renowned public intellectual Noam Chomsky sheds light on the type of democratic model the US has designed and elaborates on the political import of Trump’s victory for the two major parties, as this new political era begins.

C.J. Polychroniou: Noam, I want to start by asking you to reflect on the following: Trump won the presidential election even though he lost the popular vote. In this context, if “one person, one vote” is a fundamental principle behind every legitimate model of democracy, what type of democracy prevails in the US, and what will it take to undo the anachronism of the Electoral College?
Noam Chomsky: The Electoral College was originally supposed to be a deliberative body drawn from educated and privileged elites. It would not necessarily respond to public opinion, which was not highly regarded by the founders, to put it mildly. “The mass of people … seldom judge or determine right,” as Alexander Hamilton put it during the framing of the Constitution, expressing a common elite view. Furthermore, the infamous 3/5th clause ensured the slave states an extra boost, a very significant issue considering their prominent role in the political and economic institutions. As the party system took shape in the 19th century, the Electoral College became a mirror of the state votes, which can give a result quite different from the popular vote because of the first-past-the-post rule — as it did once again in this election. Eliminating the Electoral College would be a good idea, but it’s virtually impossible as the political system is now constituted. It is only one of many factors that contribute to the regressive character of the [US] political system, which, as Seth Ackerman observes in an interesting article in Jacobin magazine, would not pass muster by European standards.

Ackerman focuses on one severe flaw in the US system: the dominance of organizations that are not genuine political parties with public participation but rather elite-run candidate-selection institutions often described, not unrealistically, as the two factions of the single business party that dominates the political system. They have protected themselves from competition by many devices that bar genuine political parties that grow out of free association of participants, as would be the case in a properly functioning democracy. Beyond that there is the overwhelming role of concentrated private and corporate wealth, not just in the presidential campaigns, as has been well documented, particularly by Thomas Ferguson, but also in Congress.

A recent study by Ferguson, Paul Jorgensen and Jie Chen on “How Money Drives US Congressional Elections,” reveals a remarkably close correlation between campaign expenditures and electoral outcomes in Congress over decades. And extensive work in academic political science — particularly by Martin Gilens, Benjamin Page and Larry Bartlett — reveals that most of the population is effectively unrepresented, in that their attitudes and opinions have little or no effect on decisions of the people they vote for, which are pretty much determined by the very top of the income-wealth scale. In the light of such factors as these, the defects of the Electoral College, while real, are of lesser significance.
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