EU after Brexit

26 Jun, 2016 at 10:57 | Posted in Economics, Politics & Society | 1 Comment

There will be a lot of postmortems for the European Union (EU) after Brexit. Many will suggest that this was a victory against the neoliberal policies of the European Union …

6069_eu_austerity_infographic-oix1000The problem is that while it is true that the EU leaders have been part of the problem and have pursued the neoliberal policies within the framework of the union, sometimes with treaties like the Fiscal Compact, it is far from clear that Brexit and the possible demise of the union, if the fever spreads to France, Germany and other countries with their populations demanding their own referenda, will lead to the abandonment of neoliberal policies. Austerity will most likely continue …

Most of the austerity policies imposed on the peripheral countries are actually the result of the euro, and are to a great extent independent of the existence of a broader political union …

Personally, I cannot see that the disintegration of Europe would lead to a positive outcome. Sure the EU has a significant democratic deficit, and a bureaucracy that is seen as wasteful and inefficient … The same is true of American democracy.

At a minimum the European Union provided an environment in which people could move freely, in which petty nationalism gave way to acceptance of foreigners and immigrants, something particularly relevant with the refugee crisis in the neighboring region. Some may suggest that this was very little to show for. And the alternative, does it have something to show for? If the European Union really collapses, there will be very little for progressives to be happy about.

Matias Vernengo

1 Comment

  1. If we really believe that a third of us are heading towards poverty and this will occur by 2015, then at last there is a hope that those who are causing this situation to spread will realize what they are doing and change their evil ways. Frankly I don’t have this hope because I see the spread of poverty being slower.

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