DotCommunist
So many particulars. So many questions.
also worth a read
The Italian compromise | Richard Seymour on Patreon
The Italian compromise | Richard Seymour on Patreon
That's because, contrary to most reporting, this fight was not about Italy's debt repayments. As we've seen from Greece, deficit and debt work very differently. The government can run a surplus and still drive up its debt-to-GDP ratio. Indeed, in a depressed economy, that is the most likely outcome. The reality is that the European Union tends to use debt as a lever to secure other policy objectives, rather than ensure maximum repayment.
Nor is it about the government's adherence to the rules of the Stability & Growth Pact. The government's deficit plans were well within the strict 3 per cent limit imposed by the Pact, and still on the lower end of recent deficits run by the Italian government.
This was about something more fundamental: can elections be allowed to alter agreements or not? The EU is predicated on what the late Peter Gowan called "negative integration": it limits the powers of elected governments. It doesn't weaken 'sovereignty', but rather binds democratic bodies up in a network of laws and agreements.
This goes to the heart of recent arguments about what neoliberalism really is. Many commentators still lazily assume that it's a kind of 'market fundamentalism'. It was never that. As writers from Foucault onward have pointed out, neoliberals are distinct from classical liberals in that they don't believe that markets will be fine if left to themselves. They don't believe that homo economicus exists: she has to be made, by law. This reflects the fact that neoliberalism is a reaction against mass democracy and its deleterious effects on a liberal, property-based order.
Quinn Slobodian's informative book on the Geneva school neoliberals, Globalists, shows these capitalist militants to be less about free markets than about bounded democracies. Their idiom is less 'market fundamentalism' than constitutional fundamentalism. Two second-generation neoliberals, Hans von der Groeben and Ernst-Joachim Mestmäcker, played a key role in developing the legal framework for the Union. In their view, the preservation of a liberal society depended on the depoliticisation of the economy, and the creation of a robust legal framework to prevent certain kinds of government intervention.
This system depended on preserving, not eliminating, the system of national states. The power to enforce, penalise and incentivise ultimately depended on the powers of its member-states. The Hayekian EU is not a 'federalist' project: the Brexit nightmare of a 'federal superstate' (which could a very good thing) is a nonsense.