Kevin O’Rourke is Professor of Economic History at the University of Oxford, All Souls College
Can the euro-area economy withstand the Greek situation?
The important point is that the programme will not work on its own terms. Apart from that: on the one hand, there will not necessarily be any immediate contagion to the rest of the Euro-area.
But the principle that Euro membership is irreversible has now been shattered, and this will come back to haunt the eurozone sooner or later. Apart from that, the political arguments for abandoning the Euro have just gotten a lot stronger.
Economically, the new program for Greece is futile, but why do we get since the outbreak of the euro crisis mainly moral arguments to tackle the problems in the euro zone?
I think they are conveniently self-interested arguments, made by creditor nations. I don’t think morality has a lot to do with it.
The European project seems to have fallen victim to neoliberalism (obsession with austerity). What’s behind all this?
Ideological rigidity and a refusal to take empirical evidence seriously.
Thank you very much.
Prof. Kevin O’Rourke’s research lies at the intersection of economic history and international economics. In particular, a lot of work on the history of globalization and deglobalization.
His blog: The Irish Economy.