2014 November 27 Thursday
Euro Zone Bad For Less Developed Economies
Poland, Romania, Bulgaria, and Hungary did better out of the EU than Greece, Spain, Cyprus, and Portugal did inside it. The EU has failed to live up to expectations. For some countries (e.g. Greece, Portugal, Spain) EU membership has been a disaster.
We do not (at least to my knowledge) have access to a parallel universe where different countries joined the EU. But it isn't hard find reasons why membership in the EU is bad for internet start-ups and other small firms that trade online. EU regulations are seen as a burden on businesses and some attempts are being made to reduce those burdens. But the new VAT regulations for small scale online traders are a big step in the opposite direction. Leviathan must be fed and it must be fed now.
By Randall Parker at 2014 November 27 11:11 AM
So short run post-soviet growth rates are compared to western growth rates, and we're expected to be surprised that the post-soviet countries are growing faster?? I'd have thought it was incontrovertible that the EU has been great for Europe. I include Greece, Spain and Portugal in that.
Poland, Rumania, Bulgaria and Hungary are members of the EU but do not use the Euro as their currency. That probably has something to do with it. The EU started out as a customs union but, over the years, like all good bureaucracies, has grown into something much larger and more powerful. The Euro currency has advantages, but it's absurd that the southern-tier Eurozone states can have the same monetary policy as an economic powerhouse such as Germany.
The EU is bad because membership in it increases the strength of the neighborhood bully, and that is a guarantee that the EU will bully you.
Who is the EU bullying? The EU isn't bullying China, it's bullying its own members, plus those foolish enough to have close relations with it. Look at the way they turned on Switzerland when the Swiss voted to limit immigration from the EU. Look at the threats the make to any members who threaten to leave or who refuse to accept all of their rules.
"I'd have thought it was incontrovertible that the EU has been great for Europe. I include Greece, Spain and Portugal in that."
WTF? You think that 25% unemployment rates are great for Spain and Greece? That 13% unemployment rates are great for Italy and Portugal? You think that EU-imposed open borders policies that let in millions of unskilled, unfriendly foreigners is great for Europe?
Europe is in freefall. The EU hasn't done anything to stop that. It has accelerated that.