The winds of change may be blowing but to the benefit of who has yet to be determined.
Analysis published in the Irish Examiner, authored by Kevin Callinan, claims the EU is to charter a more “social democratic direction” post lockdown. Mr Callinan asserts that after the last crash, Irish people were too preoccupied to understand the impact EU fiscal rules would have on living standards.
Maybe now it is Mr Callinan who is preoccupied, perhaps with the potential idea of a more equitable form of social partnership, to understand the intricacies of global state financing.
Mr Callinan cites the Franco-German recovery fund proposal and quotes details of the how the proposal will assist the economies by increased public investment.
However, the fact that this recovery fund will predominantly come from financial markets is neglected. Basically, already bankrupt states providing further loan guarantees. Indeed, the debt maybe parked until 2050 but the servicing of the debt will commence immediately.
Surely Mr Callinan is aware of the impact debt servicing had following the last financial crash. Billions withdrawn annually from a stagnant economy, fiscal straitjackets and commitment to privatisation. All to the detriment of ordinary working people.
Will these recovery loans have the same conditions?
Many experts have come out against this recovery fund. Yanis Varoufakis claimed it was an attempt “to portray a crushing defeat as a stupendous victory”, while economic historian Conor McCabe explained that essentially the EU could loan the money to itself at 0% interest by issuing a bond to be bought by the ECB, something the USA, Japan and UK are doing.
Ordinary working people remain sceptical of any claimed benevolence from the EU leadership. Long-term implications are often sacrificed for short-term stability and this should be considered before the nailing of colours to the mast.