Re: Anti-keynesianism and extremism in Europe

[Terence Murphy <tmurphy@xxxxxxxxxxxxxx>]

Since the EU has decided on its boycott, the Danes and British have
increasingly viewed the euro with skepticism. Some have suggested that
Chirac's phone call to Lisbon was motivated by internal politial
considerations. Trailing Jospin in the polls he needs to attract the
center and left to win in the presidentials. It is interesting to learn
that in the European Parliament the RPR, his party, did not vote the
censure and explusion of the Austrian conservatives from their ranks
while the UDF, the center party in France did.

A cynic with an eye on the short term consequences for French electoral
politics might conclude that Chirac did the right thing for the wrong
reason. But an worried observer of European history with ambitions for
the enlargement of the euro zone and the enlargement of the EU to the
east might conclude that Chirac did the wrong thing for the right reason.

In terms of the structural parameters,the present moment has little to do
with Keynes and a lot to do with demography. In terms of the Maastricht
and Amsterdam Treaties, the EU is in serious trouble. The dip in the
euro/dollar parity followed on rumours that Austria would be ejected from
the Eu and the euro zone. And what if Britain entered and then joined the
US in a foreign policy adventure that Chirac disapproved of?

Terence Murphy