Václav Klaus on the Post-Democratic Era and Europe

[saxitoxin]

The outgoing Czech president made a speech last week in London.

In the past a highly heterogeneous continent flourished due to its diversity, non-uniformity, and the healthy competition between countries. This changed when Europe became unified and was artificially made uniform by centrally organised governance and legislation. It led to the disturbing economic outcomes we see today and to what is called a democratic deficit. I call it post-democracy.

The eurozone sovereign debt crisis is an inevitable consequence of one currency, one exchange rate, and one interest rate for countries with diverse economic parameters. The political decision in favour of this arrangement was taken with almost no attention being paid to the existing economic fundamentals.

Besides the difficulties resulting from integration, there is a huge problem with Europe’s social market economy. It prefers policy based on income redistribution instead of productive activities. It prefers leisure, free time, and long holidays to hard work. It prefers consumption to investment, debt to savings, and security to risk-taking.

[aad0906]

The outgoing Czech president made a speech last week in London.

The eurozone sovereign debt crisis is an inevitable consequence of one currency, one exchange rate, and one interest rate for countries with diverse economic parameters. The political decision in favour of this arrangement was taken with almost no attention being paid to the existing economic fundamentals.

This is very true and this is also why the British were very wise to stay out od the Euro. Europe should have harmonised certain policies (not all) but it just went too far. It went so far that the Eurozone countries lost their souvereignity - the can't pass all the national laws they want (need...) because sometimes they conflict with European law. The Euro would have worked great if it wouldn't have included at least Greece and Italy. The European Union has become too large and too bureaucratic. The "old" pre-1992 European Community worked much better.

The people of certain European countries now need to suffer (higher taxes, less benefits) not because their national government spending is too high or tax revenues are too low, no, they have to suffer so they can contribute to other failing member states.

[BigBallinStalin]

The outgoing Czech president made a speech last week in London.

In the past a highly heterogeneous continent flourished due to its diversity, non-uniformity, and the healthy competition between countries. This changed when Europe became unified and was artificially made uniform by centrally organised governance and legislation. It led to the disturbing economic outcomes we see today and to what is called a democratic deficit. I call it post-democracy.

The eurozone sovereign debt crisis is an inevitable consequence of one currency, one exchange rate, and one interest rate for countries with diverse economic parameters. The political decision in favour of this arrangement was taken with almost no attention being paid to the existing economic fundamentals.

Besides the difficulties resulting from integration, there is a huge problem with Europe’s social market economy. It prefers policy based on income redistribution instead of productive activities. It prefers leisure, free time, and long holidays to hard work. It prefers consumption to investment, debt to savings, and security to risk-taking.

Yeah, you right, Mr. outgoing Czech president, but that works politically in the short-run.

RE: 2nd paragraph, the single currency is a huge issue; however, it wouldn't be as much of a problem if the EU membership rules were more strictly enforced, and the EU could someone detect when people cook their books to look good for membership (e.g. Greece all them days ago),