On Mon, 2 Mar 2009, Doug Henwood wrote:
> So the EU is refusing a bailout for Eastern Europe, and the ECB is still
> hanging pretty tough. I dunno, Dennis Redmond - the EU isn't really
> looking like it has what it takes to be the next hegemon. It sounds like
> the last bastion of the austere POV that Keynes mocked as "the Treasury
> view."
It also looks like crisis is harshly exposing the EU's lack of centralized economic and political powers. They've been fine when things have been movely routinely, but when the situation calls for speedy and decisive innovation, they haven't got the means to deliver. And after Ireland goes through 6 months of savage deflation because it's in the Euro zone (while the UK suffers less much on the pound) I wouldn't be surprised if EU finds they vote down the Lisbon treaty again.
michael