A Modest Proposal for Resolving the Euro Crisis: an abridged version as published by the Financial Times On Line

, 17/08/2012

by Yanis Varoufakis[1] and Stuart Holland[2] (click here for the full version of our Modest Proposal) The Eurozone is disintegrating under the weight of three intertwined crises unfolding in the realms of banking, public debt and under-investment & internal imbalances. For two years each and every response by Europe’s leadership to the crisis proved consistently underwhelming. The [...]

Convertibility Risk: Acknowledged but not addressed

, 06/08/2012

Further to my previous post on Mr Draghi’s recent undermining of the Office of ECB President, Gavyn Davies of the FT penned the following line: “It is risky for a central banker to acknowledge that the payments system on which the currency stands may not be fully credible. Mr Draghi could simply have repeated the old […]

Depression in the Eurozone’s Periphery and how to restore Aggregate Demand without creating new bubbles: My reply to Kantoos Economics

, 30/07/2012

Preamble: Kantoos Economics recently posted an article discussing points of agreement and points of disagreement between us regarding the restoration of growth in Greece, both in the short and in the long run. Here is my reply. The problem with any Crisis is that it eliminates the type of scarcity which helps two crucial markets […]

Unanimity is not essential to cutting the ‘Gordian debt’: our letter to the FT as published today

, 02/07/2012

The other day I posted a letter that Stuart Holland and I sent to the Financial Times. Today it was published. Click here for the FT or…

June 2012 EU Summit Verdict: A good decision that will, probably, go to waste

, 29/06/2012

Mrs Merkel went to Brussels intent on striking two birds with one stone, pick up her bag immediately and return to Berlin with no further ado. The stone was the fraudulent re-packaging of existing structural and EIB funds (with the addition of a paltry 10 billion euros) into a grandiose-sounding ‘Growth Pact’. The two birds […]

Saving the Eurozone does not depend on Germany: Our letter to the Financial Times

, 28/06/2012

From Professors Stuart Holland and Yanis Varoufakis   Europe is deadlocked in assuming that resolving the Eurozone crisis must be unanimous. Yet it does not need this. It could do so by ‘enhanced cooperation’ which needs support by nine or more member states while, on a motion for an enhanced cooperation policy, only those supporting it […]

Mariana Mazzucato on the role of the EIB in spurring Investment-led Growth

, 21/06/2012

Professor Mariana Mazzucato, of Sussex University, has produced pivotal research on the role that public financing plays in fostering not only investment but also competition. Here she is appearing on Bloomberg to explain the importance of the European Investment Bank as a potential driver of growth, innovation and competition in the European Union. She also […]

On the transition to a viable Eurozone and the Modigliani-Miller Theorem: Continuing the dialogue with Kantoos Economics on the Modest Proposal (response YV3 to KE3)

, 06/06/2012

Continuing our exchange with Kantoos Economics (KE) on the Modest Proposal, today we turn to the question of the lead-up to a new Eurozone architecture. What kind of transition period will be necessary?  Also, KE asked me to respond on the relevance of the Modigliani-Theorem to our ECB-mediated debt conversion scheme that we are proposing.

Reply No. 2 (YV2) to Kantoos Economics on the merits of the Modest Proposal

, 01/06/2012

Kantoos Economics (KE) just posted the first installment of a reply to my long rejoinder to his original comment on our Modest Proposal.[1] Two are the main point raised by KE, and to which I respond below: One concerns the tradeoff between (a) maintaining market pressure on member-states to keep their public debt under wraps […]

A reply to Kantoos Economics on the merits of the Modest Proposal

, 28/05/2012

Kantoos Economics recently honoured me with an invocation to its readers to read my musings on the Euro Debacle, and to judge them critically. I thank Kantoos Economics for a simple reason: 

What does bank recapitalisation mean? An exchange with Joseph Halevi

, 27/05/2012

In reaction to my Le Monde piece, Joseph Halevi (my close friend and co-author) send me an email, regarding the meaning of bank re-capitalisation, that started as short exchange which you, dear reader, may find of interest. Any comments?

A Modest Proposal for Overcoming the Euro Crisis, Version 3.0 – Policy 3 significantly amended

, 19/05/2012

The Modest Proposal never ceases to evolve. Following the issue of Version 3.0, we have made some significant changes, primarily, on Policy 3 (the Investment-led Recovery, Rebalancing and Cohesion Program). Click here for the latest version. Comments welcome.

The Modest Proposal for Overcoming the Eurozone Crisis, Version 3.0

, 15/05/2012

This blog was established in order to throw useful light on the Eurozone Crisis and, in particular, to present our Modest Proposal for resolving it. The first version was presented in November 2010. Since then  we have had a number of updates. Today, I have the pleasure of posting Version 3.0, a thoroughly re-worked variant […]

Interviewed by Christiane Amanpour, CNN International: The case for a European New Deal

, 29/04/2012

On Friday 27th April, Christian Amanpour interviewed me on CNN Int on the theme of Europe’s slow suicide by inane austerity. CLICK HERE FOR THE VIDEO. The transcript of our conversation follows (thanks to CNN for making it available to me):

A litmus test for the theory that Europe, in the end, ‘gets it right on the night’: Will it allow the EFSF to recapitalise banks directly?

, 29/04/2012

A currency union requires a unified banking sector. With one supervisory authority that keeps banks in check (and, hopefully, in awe), re-capitalises them when the need arises and, when this happens, takes a stake in them in exchange for the capital injected into the banks.

The Modest Proposal in Eurointelligence (abridged version)

, 21/04/2012

Wolfgang Munchau kindly offered to publish a version of our Modest Proposal in Eurointelligence. Click here.


, 18/04/2012

In an astute commentary on the INET panel in which I appeared (see here for the text), to talk about Europe’s future, Eves Smith had this to say: “It is worth noting that one of the questions after the various presentations on the Eurozone mess raised the issue of the ‘democratic deficit’. The various speakers […]

The Modest Proposal in Berlin – INET Conference, 13th April 2012

, 16/04/2012

The invitation to address INET’s Berlin Conference, and to deliver a fresh version of the Modest Proposal, gave me the impetus to revisit the latter. The extended summary below (of my INET talk) will soon spawn Version 3.0 of the Modest Proposal. Europe’s strategy for dealing with the Euro Crisis has been to ringfence, at […]

Europe’s April, and how to thwart it

, 08/04/2012

The editor of a Swedish magazine asked me to contribute a short piece that combines elements of my Global Minotaur with the address I am about to deliver at the INET conference in Berlin this coming week on the Future of Europe. Here is the piece I concocted. Its title is borrowed from T.S. Elliot’s […]

Assessing George Soros’ latest plan for saving the eurozone: Prelude to Modest Proposal 3.0

, 15/03/2012

In a few short weeks I shall be discussing the ‘Future of Europe’ in a panel comprising distinguished commentators including George Soros. In preparation, I decided to take a closer look at Soros’ latest proposals for the eurozone. Here are some preliminary thoughts emanating from these proposals which I also compare and contrast to our […]

Radio and TV interviews on the Euro/Greek Crisis and the Modest Proposal. Plus an announcement…

, 03/07/2011

For those interested, a number of links to recent radio and TV interviews on the latest twists and turns of the Greek-euro crisis follow: In conversation with Trevor Chappell, on ABC Radio National (27  June 2011) Interviewed in the As It Happens leading news and current affairs program of the Canadian Broadcasting Corporation (CBC) – […]

Crisis Update: Three interviews on the Euro Crisis, the Greek Crisis and the Modest Proposal (Radio, TV and print)

, 12/06/2011

UBS Interview promoting the modest Proposal And the crisis sails on… (Anyone recall Fellini’s masterpiece “And the ship sails on”?). In todays post you can: (A) listen to a half-hour long radio interview on the euro crisis (interviewed by Doug Henwood, for the Behind the News program – it begins on the 27th minute), (B) […]

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