Interview by Chris Bambery, Conter, September 30, 2022.
The economic crisis in Britian, the war in Ukraine, and the disorder in the Eurozone are all intimately connected. Chris Bambery spoke to Wolfgang Streeck, an economic sociologist at the University of Cologne and a leading commentator on European capitalism, about the crisis in the EU and the implications for Scotland.
Chris Bambery: Once again we seem to be seeing a renewed debt crisis emerging in the EU with Portugal, Italy and Spain paying higher interest on its state debt than Germany and its satellites? How serious is this and how uneven is the EU today?
Wolfgang Streeck: It is getting more uneven by the day. Economic convergence has been promised but was never delivered. Instead divergence between the center, Germany in particular, and the Mediterranean periphery has long been growing. This is a direct consequence of EMU, the EU’s monetary union. Lagging countries may be able to catch up with more competitive countries in a common market by internal devaluation, meaning essentially lower labour costs. But this has never been successful without being flanked by external devaluation, adjusting a country’s international terms of exchange to its real productivity. (…)
Read the entire interview on conter.scot