by Bill Mitchell
….Which means that the overall monetary union is back in recession if industrial production is considered.
The other point to note is that the dominant neo-liberal narrative in Europe (and elsewhere) in relation to the ongoing consequences of the GFC focuses on individual nation failings – such as, lack of competitiveness, excessive wage rates, excessive regulation, etc – and the need for so-called ‘internal devaluation’ as a way of restoring ‘competitiveness’ and structural reform aimed at boosting productivity.
The problem with this narrative is that it is hard to maintain when industrial production is falling across a number of nations including Germany and the Netherlands, which are meant to be competitive leaders in the Eurozone.
The structural ‘reform’ agenda seems very transparent when confronted with this type of reality. Its aim is to redistribute national income in favour of capital and force workers to labour longer and harder for less reward. The European Commission is, after all, a branch of corporate power…….