Is this the end of the world as we know it?

It's certainly the end of the eurozone as we know it.

If there was ever a time for apocalyptic titles, well, this is it. Politicians, journalists, market participants, commentators, academics and pretty much everybody under the sun have engaged in an unofficial competition for who is going to come up with the most depressing prediction of what the not-so-distant-future holds for the eurozone and Europe at large.

If these doomsday predictions are anything to go by, our world will come crashing before our eyes very soon. Maybe, but it is not all that bad. This is indeed the end of the eurozone as we know but I believe we should all feel fine.

What is about to end is the perverse system of guarding a monetary union with peer pressure alone. The Stability and Growth Pack was an inadequate tool for governance, based on intergovernmentalism. Supranational institutions like the European Commission and Eurostat were left powerless to enforce discipline (or even question Member States' statistics).

Proposals are already on the table to strengthen the governance of the eurozone and empower the Commission to scrutinise national budgets, warn about the build-up of imbalances and challenge Member States that break the rules. But more needs to be done; not least the creation of a European treasury with the appropriate authority, know-how and firepower to make fiscal and economic policy common for the eurozone as a whole.

The intergovernmental model of governance has taken focus away from the collective good of the Union and put the emphasis on EU Member States' competing national interests. What we need is independent and supranational institutions, taking decisions beyond narrow national interests, with the good of the EU as a whole in mind.

In a similar vein, the idea that monetary union can prosper without fiscal union has run its course.

The emergence of imbalances and the loss of competitiveness are features of all monetary unions, including the US or the UK. To reduce the chance that these imbalances occur, scrutiny of fiscal policies and national budgets must be accompanied by the integration of labour, social and tax policies in an effort to form not just common economic policies but also a truly common European economy.

But when imbalances do emerge a system of transfers must be put in place to afford the embattled part of the union time and space to implement the necessary policies that will allow it to regain competitiveness. Those transfers will be conditional to the applications of the appropriate policies and can only happen in the context of a comprehensive fiscal union, with the rights and responsibilities that implies.

Furthermore, the European Central Bank must be liberated from its purely price stability remit. A strong and stable eurozone requires an central bank that monitors the build-up of imbalances across the economy and the financial services sector and is able -- and willing -- to function as lender of last resort when solvent member states and financial institutions find themselves in liquidity problems due to a systemic shock in the markets.

The creation of a fiscal union and the strengthening of the central bank will allow for the issuance of common bonds without the risk of moral hazard. Member Sates won't need to rely purely on the discipline of markets when they have to abide to the discipline of eurozone institutions. At the same time, the eurozone will not run the risk of constantly falling pray to the un-picking of its weakest link by the markets.

Last, but certainly not least, this Huxleyian Brave New World should have at its core democratically legitimate and accountable institutions. If we are to move closer to fiscal and economic federalism, governed by the independent and supranational institutions mentioned above, EU citizens must be at the heart of the process. Those charged with making decision -- be it the President of the European Commission, the President of the European Council, a European Finance Minister or the Members of the European Parliament -- must be directly accountable to the people.

Direct election for the three former, and a more representative voting system for the latter, will ensure a direct link between the electorate and the elected, and legitimise the process of economic integration needed to safeguard the future of the eurozone. This is not pro-European fantasy: it is a necessary building block in the architecture of the new governance structure of the Eurozone. And for that we need a new, grand, pan-EU Social Contract between EU citizens and their elected representatives.

The sooner we start drafting that contract the quicker we will be able to take EU citizens on board the process of closer European integration, bidding farewell to the world as we know it while greeting a new, brave one.

Petros Fassoulas is the Chairman of the European Movement UK

Petros Fassoulas is the chairman of European Movement UK

Getty.
Show Hide image

Here’s everything wrong with Daniel Hannan’s tweet about Saturday’s Unite for Europe march

I am Captain Ahab, and Dan is my great white whale, enraging and mocking me in equal measure through his continued political survival.

I was going to give up the Daniel Hannan thing, I really was. He’s never responded to this column, despite definitely being aware of it. The chances of him changing his views in response to verifiable facts seem to be nil, so the odds of him doing it because some smug lefty keeps mocking him on the internet must be into negative numbers.

And three different people now have told me that they were blissfully unaware of Hannan's existence until I kept going on about him. Doing Dan’s PR for him was never really the point of the exercise – so I was going to quietly abandon the field, leave Hannan to his delusion that the disasters ahead are entirely the fault of the people who always said Brexit would be a disaster, and get back to my busy schedule of crippling existential terror.

Told you he was aware of it.

Except then he does something so infuriating that I lose an entire weekend to cataloguing the many ways how. I just can’t bring myself to let it go: I am Captain Ahab, and Dan is my great white whale, enraging and mocking me in equal measure through his continued political survival.

I never quite finished that book, but I’m sure it all worked out fine for Ahab, so we might as well get on with it*. Here’s what’s annoying me this week:

And here are some of the many ways in which I’m finding it obnoxious.

1. It only counts as libel if it’s untrue.

2. This sign is not untrue.

3. The idea that “liars, buffoons and swivel-eyed loons” are now in control of the country is not only not untrue, it’s not even controversial.

4. The leaders of the Leave campaign, who now dominate our politics, are 70 per cent water and 30 per cent lies.

5. For starters, they told everyone that, by leaving the EU, Britain could save £350m a week which we could then spend on the NHS. This, it turned out, was a lie.

6. They said Turkey was about to join the EU. This was a lie too.

7. A variety of Leave campaigners spent recent years saying that our place in the single market was safe. Which it turned out was... oh, you guessed.

8. As to buffoons, well, there’s Brexit secretary David Davis, for one, who goes around cheerfully admitting to Select Committees that the government has no idea what Brexit would actually do to the economy.

9. There was also his 2005 leadership campaign, in which he got a variety of Tory women to wear tight t-shirts with (I’m sorry) “It’s DD for me” written across the chest.

10. Foreign secretary Boris Johnson, meanwhile, is definitely a liar AND a buffoon.

11. I mean, you don’t even need me to present any evidence of that one, do you? You just nodded automatically.

12. You probably got there before me, even. For what it's worth, he was sacked from The Times for making up a quote, and sacked from the shadow frontbench for hiding an affair.

13. Then there’s Liam Fox, who is Liam Fox.

14. I’m not going to identify any “swivel-eyed loons”, because mocking someone’s physical attributes is mean and also because I don’t want to get sued, but let’s not pretend Leave campaigners who fit the bill would be hard to find.

15. Has anyone ever managed to read a tweet by Hannan beginning with the words “a reminder” without getting an overwhelming urge to do unspeakable things to an inanimate object, just to get rid of their rage?

16. Even if the accusation made in that picture was untrue, which it isn’t, it wouldn’t count as libel. It’s not possible to libel 52 per cent of the electorate unless they form a distinct legal entity. Which they don’t.

17. Also, at risk of coming over a bit AC Grayling, “52 per cent of those who voted” is not the same as “most Britons”. I don’t think that means we can dismiss the referendum result, but those phrases mean two different things.

18. As ever, though, the most infuriating thing Hannan’s done here is a cheap rhetorical sleight of hand. The sign isn’t talking about the entire chunk of the electorate who voted for Brexit: it’s clearly talking specifically about the nation’s leaders. He’s conflated the two and assumed we won’t notice.

19. It’s as if you told someone they were shit at their job, and they responded, “How dare you attack my mother!”

20. Love the way Hannan is so outraged that anyone might conflate an entire half of the population with an “out of touch elite”, something that literally no Leave campaigners have ever, ever done.

21. Does he really not know that he’s done this? Or is he just pretending, so as to give him another excuse to imply that all opposition to his ideas is illegitimate?

22. Once again, I come back to my eternal question about Hannan: does he know he’s getting this stuff wrong, or is he genuinely this dim?

23. Will I ever be able to stop wasting my life analysing the intellectual sewage this infuriating man keeps pouring down the internet?

*Related: the collected Hannan Fodder is now about the same wordcount as Moby Dick.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. You can find him on Twitter or Facebook.