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Tag: EMU

Margaret Thatcher predicted Yanis Varoufakis

Tuesday, 30 June, 2015 0 Comments

It is fashionable for liberal/leftist elites, including feminists, to hate Margaret Thatcher. She was all that they are not and because she refused to play the glass-ceiling game, they despised her. The most obvious recent example of their rage is The Assassination Of Margaret Thatcher by Hilary Mantel, which was published to much acclaim last year. Gleefully, the BBC adapted it for radio.

What they cannot deny, however, is that Margaret Thatcher understood the nightmare potential of the euro and she saved Great Britain from getting entangled in its snares by voicing her concerns. This led to the “five tests” devised, allegedly in the back of a taxi, by Gordon Brown and Ed Balls in 1997 that kept the UK out of the euro for good. In The Path To Power (1995), Mrs Thatcher revealed that she had been under constant pressure since 1990 to accept the proposed EMU (Economic and Monetary Union). She wanted no part of it; she foresaw the inflation and competitiveness dangers, she knew her history and she understood human nature. Referring to EMU, she said:

“Under this, Germany and France would end up paying all the regional subventions which the poorer countries would insist upon if they were going to lose their ability to compete on the basis of a currency that reflected their economic performance. I also thought that the Germans’ anxiety about the weakening of their anti-inflation policies, entailed by moves towards a single currency and away from the Deutschmark, could be exploited in negotiations.”

Sure enough, Germany will not accept greater inflation, poorer countries are insisting on bailouts and Yanis Varoufakis knows a thing or two about exploiting his counterparts in negotiations. Those dealing with the mess now might benefit from studying this snippet from a lecture Margaret Thatcher gave at Hillsdale College in 1994:

“Sir Edward Gibbon (1737-1794), author of The Decline and Fall of the Roman Empire, wrote tellingly of the collapse of Athens, which was the birthplace of democracy. He judged that, in the end, more than they wanted freedom, the Athenians wanted security. Yet they lost everything — security, comfort, and freedom. This was because they wanted not to give to society, but for society to give to them. The freedom they were seeking was freedom from responsibility. It is no wonder, then, that they ceased to be free.”

Margaret Thatcher


No. No. No.

Tuesday, 9 April, 2013 0 Comments

In her two autobiographies, The Downing Street Years and The Path To Power, the late British Prime Minister Margaret Thatcher made clear that she wanted the UK to have no part of EMU (Economic and Monetary Union) in the form of what became the euro currency. With uncanny prescience, she foresaw that Germany would baulk at the inexorable need for greater inflation and that the weaker countries would inescapably become uncompetitive and need bailouts.

“I said that it was psychologically wrong to put ourselves in a frame of mind in which we accepted the inevitability of moves towards EMU rather than attacking the whole concept. We had arguments which might persuade both the Germans — who would be worried about the weakening of anti-inflation policies — and the poorer countries — who must be told they would not be bailed out of the consequences of a single currency, which would therefore devastate their inefficient economies.” The Downing Street Years (1993)

And so it has come to pass. After Greece, Ireland, Portugal and Cyprus have had to be bailed out, and now Slovenia is wobbling into parlous territory. If only the hotheads had listened to Mrs Thatcher 23 years ago, much of the current suffering could have been avoided.

“It will be recalled that when John Major and I had been discussing the tactics required to resist pressure towards economic and monetary union in the summer of 1990, I had been quite prepared for the other eleven Governments to negotiate a separate treaty for Economic and Monetary Union (EMU). Under this, Germany and France would finish up paying all the regional subventions which the poorer countries would insist upon if they were going to lose their ability to compete on the basis of a currency that reflected their economic performance.” The Path To Power (1995)

As it’s turned out, Germany, not France, is paying for the poorer countries in the form of a new wave of anti-German feeling swelling across Europe. The things that vex stony sleep to nightmare are many, as the poet said.


AEP picks his Unwort: Fiskalunion

Monday, 5 December, 2011 0 Comments

This is going to be a critical week for the beleaguered euro, and the common currency’s most incisive critic is starting the week in top form. We’re talking about AEP (Ambrose Evans-Pritchard) of the Telegraph. With “Fiskalunion is worst of all worlds for Europe“, AEP comes out of the blue corner, hitting hard: “None of Mrs Merkel’s proposals — whether enshrined in EU treaties or not — offer any meaningful solution to the crisis at hand. They continue to ignore the cancer in the EMU system: the corrosive 30pc currency misalignment between North and South, and the German-Dutch trade surplus.” After that jab, comes the right hook: “Her plan clings to the Wagnerian myth that Club Med fiscal extravagance is the cause of all the trouble, though Spain had a budget surplus of 2pc of GDP five years ago and never broke the Stability Pact — unlike Germany — and Italy has long had a primary surplus.”

By the way, the EU might not be the ideal organization to enforce Fiskalunion as its auditors have for the last 17 years running refused to sign off its own budget because of “material errors” amounting, last year, to 3.7 per cent of all its expenditure.

It’s going to be a critical week.