Joint liability in international lending: A proposal for amending the Treaty of Lisbon
Kaushik Basu, Joseph Stiglitz 02 January 2014
The Eurozone crisis exposed weaknesses in the Eurozone’s design. This column – by Nobelist Joe Stiglitz and World Bank Chief Economist Kaushik Basu – argues that the Eurozone’s financial architecture can be improved by amending the Treaty of Lisbon to permit appropriately structured cross-country liability for sovereign debt incurred by EZ members.
The sovereign debt crisis exposed weaknesses in the Eurozone’s financial architecture that may not have been fully anticipated when the founding treaties of the Eurozone were drafted. Key among these weak spots are the provisions of the Treaty of Lisbon which regulate intergovernmental debt obligations and preclude direct financing of sovereigns by the ECB.
EU institutions International finance
eurozone, Maastricht Treaty, sovereign debt, moral hazard, Lisbon Treaty, Eurozone crisis, no-bailout clause
Further thoughts on the Irish referendum
Kevin Hjortshøj O’Rourke 26 June 2008
Veiled or explicit anti-Irish threats will swing some ‘yes’ voters to the no-camp in a second referendum. If Europe's leaders want the Lisbon Treaty, they must unambiguously commit to respecting the results of a second Irish referendum. This would deprive the no campaign of convincing arguments and help restore the EU’s tarnished image across Europe.
Thanks to two opinion polls which were commissioned in a hurry after the Irish rejection of the Lisbon Treaty, we now know a little bit more about the profiles of those who voted yes and no on June 12.
EU institutions Politics and economics
Ireland, Lisbon Treaty, Irish no
Europe Was Going Too Far
Alberto Alesina, Romain Wacziarg 22 June 2008
This column argues that the Lisbon Treaty is a Trojan horse where better rules of government (a good thing) are associated with fears of their misuse (excessive centralization). No wonder voters won’t open the gates. EU leaders need to dispense with schemes designed to bypass the will of the people and focus instead on fundamentally rethinking the goals and processes of political integration. Until this is clarified, European electorates will be confused, fear the “Eurocrats” and vote no.
On June 12, the Irish people dealt yet another blow to European political integration. While many European leaders and commentators despair at the Irish rejection of the Lisbon Treaty, they should see it as an opportunity to reflect upon what is wrong with the process of European political integration. They missed such an opportunity after the rejection of the Constitution and instead tried to bypass the will of the people by adopting without referenda essentially the same provisions.
Lisbon Treaty, Irish no
Lisbon Treaty: Democracy vs efficiency?
Sara Hagemann 21 June 2008
This column shows that the flow of EU decision-making has slowed. The Lisbon Treaty could bolster decision-making efficiency and democracy by reinforcing the three main elements of representative democracy, namely elected representatives that fight for their constituencies’ interests, compete with other such representatives, and are accountable to voters. But that still leaves open the question of implementation.
The two main ‘selling points’ of the Lisbon Treaty are that it increases democracy and efficiency in the EU. These were not enough for the Irish evidently. Either they were not explained sufficiently clearly, or Irish voters may have voted on the basis of other issues – including some unrelated to the Treaty text itself. Whatever the reasons, many observers have pointed out that the same result would have prevailed elsewhere if other EU populations had also been asked to vote.
Lisbon Treaty, Irish no
The Irish “no” and the rich-poor/urban-rural divide
Kevin Hjortshøj O’Rourke 14 June 2008
The Irish ‘no’ – like the 2005 French ‘non’ – shows a clear poor/rich and urban/rural divide. Working-class and rural voters are systematically voting against further European integration. European leaders should take note.
Like many of my compatriots, I spent Friday evening in a pub. In my case the pub was in the heart of France’s beautiful Chartreuse region, and it was full to the brim of French and Dutch football supporters, the latter increasingly rambunctious as the evening wore on.
European Union, globalisation, Lisbon Treaty, Irish no