Tuesday, December 20, 2011

Open letter to the EU

The Telegraph in the U.K. has published this open letter from 16 university professors:

Without radical deregulation, EU markets will never thrive

"SIR – As economists from 16 EU states, we don’t all hold the same view on whether the euro was a good idea, nor any particular view on David Cameron’s veto of a possible EU treaty. However, we are staunch believers in the free movement of goods, services, people and capital as enshrined in the Treaty of Rome.
Though only one person from each country has signed this letter, our views are not far out of line with those of many fellow economists. The EU should not focus on Mr Cameron’s actions. It should, instead, look at the underlying arguments about the future of the EU and the euro.
Unless there is radical deregulation of the labour and product markets and lower taxation, the euro can never work and the EU can never be a thriving economic area again.
These are the challenges, but the EU and its member governments are moving in the wrong direction. We see no sign that those discussing how to deal with the euro crisis understand the actions that need to be taken.
Whether or not the euro survives, this attitude will lead to gradual decline and increased social conflict within the EU. It may ultimately lead to the disintegration of both the single currency and the EU."

Until the politicians start understanding the root of the problem and commence on essential structural reforms we will see no progress.

Perhaps this crisis is necessary to open the eyes of the incredulous.

No comments:

Post a Comment