Wednesday, May 7, 2008

Wyplosz on Sarko's Europe

Charles Wyplosz offers a scathing analysis of the incoherence of Sarkozy's Europe policy. He has squandered the fruits of success on the Lisbon treaty by attacking and seeking to revise the charter of the ECB, by pursuing the Union for the Mediterranean to the consternation of the Germans, and by refusing to consider revision of agricultural subsidies in light of the windfall profits being reaped by many farmers as a result of rising world prices for food. Finally, he has refused to call for revision where revision is desperately needed, in the Stability and Growth Pact, even though its limitations on deficit and debt severely limit his ability to conduct the reforms he says he wants to make at home.