The European Council decided during a summit organized to address the COVID-19 crisis on 23 April to confirm a European Commission program to support national insurance systems. They also approved a program by the European Investment Bank to support lending to small and medium-sized enterprises, and another by the European Stability Mechanism to make loans available to national governments to pay for health care expenses related to the pandemic. Finally, the Council asked the Commission to set out a roadmap for the creation of a ‘recovery fund, which is needed and urgent’. Supporters of the decision hailed it as an unprecedented leap toward a Europe of solidarity; critics decried it as vague and insignificant. They are both wrong and right at the same time.
The European Council will meet by video conference next Thursday. When it does, the three main items on the agenda will be to approve the recommendations made by the Eurogroup on 9 April, to push forward the conversation about a European Recovery Fund, and to restart and restructure the talks about the upcoming multi-annual financial framework. In English, that means the conversation will be about money. Like any conversation about money it will be difficult. The opportunities for misunderstanding are everywhere. Now is a good time to sort out some of the issues.
I am an American – an outsider – not a European. I have been studying and living in Europe for a while; I wrote my doctoral dissertation on Dutch politics; I spend more time now looking at politics in Italy. Alongside that political interest, I have spent much of the past thirty years looking at European monetary integration. Europe has taught me a lot, but there are still many things I find confusing. Top of the list right now is that the governments of the euro area would rather accept a higher shared risk in the ECB than they would face if they agreed to share risks through an institution specifically designed to raise credit in the markets. This strange choice about how to share risks matters because the risks the European face have never been greater.
During her first address to the Conservative Party as Prime Minister of the United Kingdom in October 2016, Theresa May made it clear that: ‘if you believe you are a citizen of the world, you’re a citizen of nowhere. You don’t understand what the word “citizenship” means.’ Moreover, this was not an off-the-cuff remark. As she explained at the top of the speech, May was setting out her governing philosophy. And central to that philosophy is what she called ‘the spirit of citizenship’, which she defined in terms of ‘the bonds and obligations that make … society work,’ ‘commitment to the men and women who live around you,’ and ‘recognising the social contract’ in a way that puts ‘local’ people ahead of people from ‘overseas’. That sort of thinking is attractive, but dangerous — now more than ever.
Paolo Gentiloni began his tenure as European Commissioner today by giving an interview in Corriere della Sera. He spoke about a number of the major issues the new Commission has to face, but the part of the conversation that made the front page ran something like ‘the reform of the European Stability Mechanism is not a threat.’ Flip to page three and the title is even more explicit: ‘There is no plot in Brussels against Italy.’ European macroeconomic policy coordination is politically explosive. Gentiloni is the Commission’s first line of defence.
Application season always makes me wonder about the future of higher education. The business model is hard to understand. The costs are hideous. The sources of funds not obvious. And there is no way to imagine that tuition alone can prepare us — by which I mean higher education in general — for the future. This year I had the chance to speak about these issues in China with university administrators from across the Asia-Pacific region. It was fascinating to see how much our concerns are similar. The implication is that we all have a lot of work to do to ensure that higher education has a sustainable future. I gave two contributions — both of which are below.
The British ruling class once governed the world; now they struggle to govern the United Kingdom. The political parties are splintered, the people are divided, the institutions are in conflict, and the gap between England, Scotland, and Northern Ireland continues to widen. Worse, the British government has once again failed to negotiate to secure a majority in parliament to exit the European Union or to come up with a convincing plan for how to leave without one. Now the British head to the polls in the hopes that the people will deliver a clear verdict on how they want to proceed. The results may prove decisive. The worry is the voters may return another hung parliament — leaving the British ruling class to sort out what to do next.