Economist Thomas Piketty with Portuguese Socialist leader Antonio Costa. Demotix/Thomas Meyer. All rights reserved.The European Union (EU) is morphing into a euro zone; in a sense, it is shrinking rather than expanding. A couple of western countries are not even part of it. Iceland has changed its mind and entry negotiations have stalled. Recent YouGov polls point to a possible Brexit.
The common currency has proved a massive headache for everyone in recent years. Non-euro zone countries don’t want to get involved: the euro threatens to bring their economies into chaos with no chance of turning back. Once you’re in, that’s it. If it all goes pear-shaped, tough. The EU’s embrace feels like a straightjacket, especially with the Eurogroup administering electroshocks to numb the effects of austerity.
How did we get to this point? The EU was supposed to bring about a progressive transformation. Has it expanded too quickly? And if so, is there any way it can be shrunk and then gradually rebuilt and made more democratic - with a more logical fiscal policy outdoing the rigid Stability pact?
