The high priests of austerity

To an EU elite determined to push harmful economic policies, democracy is an inconvenience.

Jean-Claude Trichet could have enjoyed a comfortable retirement after stepping down as president of the European Central Bank in 2011.  Commanding an annual salary of €370,000 in his old job, the Frenchman is now paid a pension of up to 70 per cent that amount.

Instead, Trichet has been kept busy playing a game of musical chairs with Italy's technocrat former prime minister Mario Monti. In one of his final acts as ECB chief, Trichet spearheaded the downfall of Silvio Berlusconi by insisting that the lascivious rogue introduce unpalatable economic "reforms" in Italy as a condition of emergency "assistance". 

The diktat helped Monti replace Berlusconi as prime minister (without an election). It also allowed Trichet to fill two posts that Monti had to vacate: those of European chairman with the Trilateral Commission, that secretive club for political and business leaders, and chairman of Bruegel, a think tank based in Brussels.  Trichet combines these responsibilities with overseeing the Group of 30, a Washington-based institution dominated by bankers.  

All this hyper-activity might explain why Trichet has been sending out some muddled messages.  During an interview on French television earlier this month, he blamed mass unemployment for the killing of a far-left activist by skinheads before advocating deep cuts to public expenditure: a recipe for mass unemployment.

Suave and confident,  Trichet probably didn't realise he was contradicting himself.  So I'd recommend that he reads a paper published by his minions at Bruegel in May.  An assessment of measures taken in embattled eurozone economies, it stated that austerity has caused "very high unemployment" in Greece and "record unemployment levels" in Portugal.

This was a rare admission from Bruegel that its preferred prescriptions are counterproductive.

Funded by Goldman Sachs (another one-time Monti employer), Deutsche Bank, Pfizer and Microsoft, the think tank has helped cloak the crude politics of austerity with intellectual gravitas. It is treated with reverence among the elite in Brussels and beyond. Top-ranking EU officials regularly attend its events, while opinion pieces by its staff grace such newspapers as Le Monde and The Financial Times.

Bruegel was established by Jean Pisani-Ferry, who was hired as an economic adviser by François Hollande, the French president, in April. The appointment indicates that Hollande, nominally a socialist, is shifting  to the right. In a syndicated column from December 2012, Pisani-Ferry parroted Margaret Thatcher's argument that "there is no alternative" to eviscerating the welfare state. "Rather than flirting with illusions, governments should confront the hard choices ahead of them," he stated.

Pisani-Ferry's new responsibilities have not caused him to be more reticent. When flaws were recently pinpointed in a by now infamous paper from the economists Carmen Reinhart and Kenneth Rogoff, he claimed it was "never a celebrated piece of economic research". The shortcomings did not undermine the case for austerity, he suggested.

One common misperception is that the EU's most powerful figures have made up their response to the economic crisis as it went along. The truth is that they have exploited the situation to dust down plans hatched earlier but which would have been difficult to implement under less straitened circumstances.

André Sapir, a senior fellow at Bruegel, was tasked with drawing up a series of recommendations for the European Commission nearly a decade ago.  The 2004 Sapir report advocated that the Brussels authorities be given greater powers to monitor the budgets of EU countries. 

Known to policy wonks as the "European semester", his proposal urged meddling in areas of responsibility that national governments guarded jealously.  The concept has been turned into reality over the past few years, leading to a situation where details of Ireland's budgets are sent to other European capitals before law-makers in Dublin get to see them.

Bruegel is part of a mushrooming network of corporate-financed think tanks dedicated to influencing debate.  A video posted on Bruegel's website about Latvia's bid to join the euro illustrates this point.  It tells the viewer that there is "wide consensus" that signing up to the single currency would be "the right move for the country". 

That must be news to the people of Latvia, most of whom don't want the euro, according to opinion polls. Such inconvenient details can, of course, be glossed over. More than likely, the Riga government won't be calling a referendum on this matter.

Democracy does not gatecrash the cheese and wine receptions that happen almost nightly in the world of think tanks. Without scrutiny, their "experts" can mould the outside world in the way that the wealthy and influential want. 

David Cronin's "Corporate Europe: How Big Business Sets Policies on Food, Climate and War" will be published by Pluto in August. Follow him on Twitter @dvcronin

A recent debate at the European Parliament in Strasbourg. (Photo: Getty.)
Photo: Getty
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Sean Spicer's Emmys love-in shows how little those with power fear Donald Trump

There's tolerance for Trump and his minions from those who have little to lose from his presidency.

He actually did it. Sean Spicer managed to fritter away any residual fondness anyone had for him (see here, as predicted), by not having the dignity to slip away quietly from public life and instead trying to write off his tenure under Trump as some big joke.

At yesterday’s Emmys, as a chaser to host Stephen Colbert’s jokes about Donald Trump, Sean Spicer rolled onto the stage on his SNL parody podium and declared, “This will be the largest audience to witness an Emmys, period.” Get it? Because the former communications director lied about the Trump inauguration crowd being the largest in history? Hilarious! What is he like? You can’t take him anywhere without him dropping a lie about a grave political matter and insulting the gravity of the moment and the intelligence of the American people and the world. 

Celebs gasped when they saw him come out. The audience rolled in the aisles. I bet the organisers were thrilled. We got a real live enabler, folks!

It is a soul-crushing sign of the times that obvious things need to be constantly re-stated, but re-state them we must, as every day we wake up and another little bit of horror has been prettified with some TV make-up, or flattering glossy magazine profile lighting.

Spicer upheld Trump's lies and dissimulations for months. He repeatedly bullied journalists and promoted White House values of misogyny, racism, and unabashed dishonesty. The fact that he was clearly bad at his job and not slick enough to execute it with polished mendacity doesn't mean he didn't have a choice. Just because he was a joke doesn't mean he's funny.

And yet here we are. The pictures of Spicer's grotesque glee at the Emmy after-party suggested a person who actually can't quite believe it. His face has written upon it the relief and ecstasy of someone who has just realised that not only has he got away with it, he seems to have been rewarded for it.

And it doesn't stop there. The rehabilitation of Sean Spicer doesn't only get to be some high class clown, popping out of the wedding cake on a motorised podium delivering one liners. He also gets invited to Harvard to be a fellow. He gets intellectual gravitas and a social profile.

This isn’t just a moment we roll our eyes at and dismiss as Hollywood japes. Spicer’s celebration gives us a glimpse into post-Trump life. Prepare for not only utter impunity, but a fete.

We don’t even need to look as far as Spicer, Steve Bannon’s normalisation didn’t even wait until he left the White House. We were subjected to so many profiles and breathless fascinations with the dark lord that by the time he left, he was almost banal. Just your run of the mill bar room bore white supremacist who is on talk show Charlie Rose and already hitting the lucrative speaker’s circuit.

You can almost understand and resign yourself to Harvard’s courting of Spicer; it is after all, the seat of the establishment, where this year’s freshman intake is one third legacy, and where Jared Kushner literally paid to play, but Hollywood? The liberal progressive Hollywood that took against Trump from the start? There is something more sinister, more revealing going here. 

The truth is, despite the pearl clutching, there is a great deal of relative tolerance for Trump because power resides in the hands of those who have little to lose from a Trump presidency. There are not enough who are genuinely threatened by him – women, people of colour, immigrants, populating the halls of decision making, to bring the requisite and proportional sense of anger that would have been in the room when the suggestion to “hear me out, Sean Spicer, on SNL’s motorised podium” was made.

Stephen Colbert is woke enough to make a joke at Bill Maher’s use of the N-word, but not so much that he refused to share a stage with Spicer, who worked at the white supremacy head office.

This is the performative half-wokeness of the enablers who smugly have the optics of political correctness down, but never really internalised its values. The awkward knot at the heart of the Trump calamity is that of casual liberal complicity. The elephant in the room is the fact that the country is a most imperfect democracy, where people voted for Trump but the skew of power and capital in society, towards the male and the white and the immune, elevated him to the candidacy in the first place.

Yes he had the money, but throw in some star quality and a bit of novelty, and you’re all set. In a way what really is working against Hillary Clinton’s book tour, where some are constantly asking that she just go away, is that she’s old hat and kind of boring in a world where attention spans are the length of another ridiculous Trump tweet.

Preaching the merits of competence and centrism in a pantsuit? Yawn. You’re competing for attention with a White House that is a revolving door of volatile man-children. Trump just retweeted a video mock up where he knocks you over with a golf ball, Hillary. What have you got to say about that? Bet you haven’t got a nifty Vaclav Havel quote to cover this political badinage.

This is how Trump continues to hold the political culture of the country hostage, by being ultra-present and yet also totally irrelevant to the more prosaic business of nation building. It is a hack that goes to the heart of, as Hillary's new book puts it, What Happened.

The Trump phenomenon is hardwired into the American DNA. Once your name becomes recognisable you’re a Name. Once you’ve done a thing you are a Thing. It doesn’t matter what you’re known for or what you’ve done.

It is the utter complacency of the establishment and its pathetic default setting that is in thrall to any mediocre male who, down to a combination of privilege and happenstance, ended up with some media profile. That is the currency that got Trump into the White House, and it is the currency that will keep him there. As Spicer’s Emmy celebration proves, What Happened is still happening.