Friday, July 31, 2015

Bill Mitchell — Italy’s time to demonstrate leadership

When the Brussels bullies call them up to demand more austerity, Italy would be best to flex its muscle. It is too big for the Troika to steam roll.
And, I suspect, the Italians have a better understanding of their place in Europe than Greece and won’t fall for any threats that they will be expelled from Europe.
It is a bit hard to cut of ones ‘boot’ without also severing the ‘foot’!
I would recommend that Italy take the initiative and ignore the fiscal rules and introduce some large public spending programs – like Job Guarantee – to get the economy moving.
Brussels can fulminate in whatever fashion they like – probably by taking it out of the defenseless Greece. But they can do very little against a nation as powerful within Europe as is Italy.

Merkel, Schäuble & Co. think that making an example of Greece will "send a message" to other countries of the EZ if they don't tow the line. Bill points out that Italy is not Greece.

Of course, France is not either, and if Yanis is correct in reporting that the example is also aimed at France, then things are going to get interesting.

Bill Mitchell – billy blog
Italy’s time to demonstrate leadership
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

No comments: