To revive the ailing European project, the ugly conflict between Catalonia’s regional government and the Spanish state may be just what the doctor ordered. A constitutional crisis in a major European Union member state creates a golden opportunity to reconfigure the democratic governance of regional, national, and European institutions, thereby delivering a defensible, and thus […]
The Promise Of Fiscal Money
Western capitalism has few sacred cows left. It is time to question one of them: the independence of central banks from elected governments. The rationale for entrusting monetary policy fully to central banks is well understood: politicians, overly tempted during the electoral cycle to create more money, pose a threat to economic stability. While progressives […]
Adults In The Room: Taking On Europe’s Deep State
What happened in Greece during the crisis? And what happens when you take on the establishment? In this extensive interview with EFN, former finance minister of Greece Yanis Varoufakis, talks about his new book Adults In The Room – My battle with Europe’s deep establishment.
Europe’s Illiberal Establishment
On March 25, Europe’s leaders convened in the birthplace of the “European project” to celebrate the 60th anniversary of the Treaty of Rome. But what exactly was there to celebrate? Were they reveling in Europe’s disintegration, which they now call “multi-speed” or “variable geometry” Europe? Or were they there to applaud their business-as-usual approach to […]
A New Deal To Save Europe
“I don’t care about what it will cost. We took our country back!” This is the proud message heard throughout England since the Brexit referendum last June. And it is a demand that is resonating across the continent. Until recently, any proposal to “save” Europe was regarded sympathetically, albeit with skepticism about its feasibility. Today, […]
The ECB’s Illusory Independence
A commitment to the independence of central banks is a vital part of the creed that “serious” policymakers are expected to uphold (privatization, labor-market “flexibility,” and so on). But what are central banks meant to be independent of? The answer seems obvious: governments. In this sense, the European Central Bank is the quintessentially independent central bank: No […]
In Conversation With Noam Chomsky At The New York Public Library
On 26th April 2015, I had the immense privilege of appearing at the New York Public Library with Noam Chomsky. Amongst other topics, we discussed Bernie Sanders, Greece, Europe, capitalism, the state of economic doctrine and, of course, DiEM25, the Democracy in Europe Movement that Noam recently joined. My deepest gratitude to the good people […]
Imagining a New Bretton Woods
The financial meltdown of 2008 prompted calls for a global financial system that curtails trade imbalances, moderates speculative capital flows, and prevents systemic contagion. That, of course, was the goal of the original Bretton Woods system. But such a system today would be both untenable and undesirable. So, what might an alternative look like? The […]
Lies, Damn Lies, And European Growth Statistics
“Greece has at last returned to economic growth.” That was the official European Union storyline at the end of 2014. Alas, Greek voters, unimpressed by this rejoicing, ousted the incumbent government and, in January 2015, voted for a new administration in which I served as finance minister. Last week, similarly celebratory reports emanated from Brussels […]
Why The UK Should Stay In The EU
In an interview with EUROPP’s editor Stuart Brown, former Greek finance minister Yanis Varoufakis discusses the launch of his new ‘Democracy in Europe’ movement (DiEM25), the UK’s upcoming referendum on EU membership, and why a surge of democracy is needed to prevent the EU from sliding toward disintegration. You have just launched a new political movement, DiEM25, […]
Why Capitalism Will Eat Democracy
Have you wondered why politicians aren’t what they used to be, why governments seem unable to solve real problems? Economist Yanis Varoufakis, the former Minister of Finance for Greece, says that it’s because you can be in politics today but not be in power — because real power now belongs to those who control the […]
Greece’s Two Currencies
Imagine a depositor in the US state of Arizona being permitted to withdraw only small amounts of cash weekly and facing restrictions on how much money he or she could wire to a bank account in California. Such capital controls, if they ever came about, would spell the end of the dollar as a single […]
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