Dialogue

Will Greece bring true politics into the Union?

Every time a Greek, Spanish, French, or other European politician says: “this matter no longer depends on me, it’s Brussels”, what s/he is really telling his/her people is that “national politics has become irrelevant, you can vote for whoever you want, it does not make any difference, decisions are made elsewhere”. And yet, so far, true European politics has not come into existence to make up for that loss. It is a broadly held view that the process of European integration inevitably involves a progressive transfer of sovereignty from the national sphere to central institutions. In the course of EU history this question occupied a central place in the negotiation of the various treaties. Each transfer of such an abstract matter, as sovereignty, was painfully measured, negotiated and eventually incorporated into the treaties and daily practice.

Mixed responses to Greece´s game change

So far the responses have been divided. France, the country most exposed to Greece’s debt due to its heavy bank and private lending, welcomed Syriza’s win. François Hollande vowed cooperation with the newly-formed Greek government, recalling “the friendship that unites” the two countries. But Germany’s Angela Merkel was more straightforward. Her spokesman said that Greece should continue to economic recovery and stick “to its previous commitments”. The European Popular Party leader, Manfred Weber, followed the same course, calling Tsipras electoral promises “empty”.

Radical parties across Europe widely welcome Greece’s electoral results. Left wing radical parties in the European Union congratulated Syriza’s Tsipras, with Spain’s Podemos welcoming the “real Greek president, not a delegate of Angela Merkel”.

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Chaos has always been a scenario for Greece, ever since the bailout. The mix was there: a bankrupt country, crippling unemployment, violent riots, weekly strikes, neo-Nazis in parliament, a rapid decline in living standards that turned into a humanitarian emergency. Outside Greece, in public analysis and private conversations, the possibility of the destabilisation of democracy came up every now and then, some kind of coup that would send the country to the extreme left or right. For those who indulged in these cassandric predictions the rise of leftist Syriza was a vindication: surely this is a rogue party, self-positioned on the Radical Left, with communist roots, and a populist rhetoric? Discussion of the Greek problem has always involved a degree of fear-mongering, which is useful in the manipulation of public opinion, but rather redundant in adding any nuance to our understanding of a foreign context. A useful key-phrase, if one truly wishes to understand Greece in crisis, is “structural reforms”.

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Draghi turns on the QE tap

Mario Draghi has fulfilled his promise and put into action the words “whatever it takes” – which he declared at the height of the debt crisis in July 2012 – to save the euro. After the first ECB Governing Council meeting of the year, its president announced the implementation of the much-anticipated Quantitative Easing (QE), a statement that has not only fulfilled but exceeded the markets’ expectations. The Italian banker has led the ECB into unknown territory with a massive sovereign bond-buying plan that will be added to the existing private sector asset purchase program, amounting to a total of €1.14 trillion. The goal is to quell the threat of deflation, and to reactivate economic growth, which remains stagnant in the euro area.

She did it again. Cara Delevingne has amazed us once again at the Yves Saint Laurent Loves Your Lips party, where the British model combined two of her passions: music and fashion. Cara wore that spectacular rouge by Yves Saint Laurent, a firm for whom she’s already worked for in the past. And Cara delighted…

Hitherto, the European Central Bank (ECB) always held its meetings on monetary policy on the first Thursday of every month, followed by a press conference with its president, Mario Draghi. Starting this year, this decision-making frequency will be reduced, and the communications will be more transparent. The Governing Council’s first meeting of 2015 – which could result in the largest stimulus for the euro area of all time– will be held on 22 January, and not on 8 January, which was the custom. 2015 is also a year of enlargement: with Lithuania joining the euro area as its 19th member state.

The European Commission published a report on employment and social developments in Europe, on 15 January, where it is noted that more than nine million more are unemployed compared with 2008. The unemployment rate in the 28 EU member states reached 10.0% in November 2014, down from 10.7% in November 2013. Youth unemployment reached 21.9% in the EU and 23.7% in the euro area, compared with 23.2% and 23.9% respectively in November 2013. Unemployed young people under 25 are now 5.1 million in the EU, compared with 3.4 million in the Eurozone.

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