Peter Bratsis -On The Greek Elections and the Future of John Maynard Keynes
In fact, as this situation in Greece, Spain, Italy and beyond has been playing out, a German backed EU fiscal stability treaty has been in the process of being ratified throughout the eurozone. Most recently (May 31st) it was approved by Ireland in a referendum. Greece, Portugal, and Slovenia had previously approved the treaty. At least eight more euro-zone countries would need to ratify it for it to take effect for the full seventeen-member eurozone. Under this treaty, any deficit spending annually beyond .5 percent of GDP would be outlawed. A deficit above .5 percent would trigger a series of interventions and penalties intended to coerce and punish any attempt to go beyond the agreed upon limits. In effect, it is a treaty to outlaw John Maynard Keynes.