POLITICS JANUARY 30, 2012
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Though the continent's collected prime ministers will no doubt again pledge to do all that's within their powers to preserve the grandeur of the European Union when they meet today in Brussels, the continent's fate ultimately rests on the quiet, technocratic governments of Italy and Greece. Unfortunately, those administrations have since seen their fortunes diverge considerably. It’s worth noting, however, that their respective failures and successes have been entirely predictable (if not entirely preventable.)
Take Italy first. Mario Monti’s administration in Rome could have hardly hoped for a better outcome since taking office. After successfully passing a new austerity bill with widespread support (tellingly dubbed “Save Italy”), it is about to embark on much more crucial reforms to decrease labor costs and improve the country’s growth profile. This involves taking on special interests and staying the course against onslaught from powerful unions. The goal, however, is worthy—and the public seems steadfastly supportive. Though there have been some strikes, even Monti has expressed amazement at the level of general support in the country.
In Greece, meanwhile, the situation could hardly be more different. Prime Minister Lucas Papademos has struggled to reach an agreement with international creditors over a debt write-down and, even if that hurdle is surmounted, he will have to negotiate Greece’s second international bailout in two years. Internally, however, he has failed in large part due to opposition from within his own government.
The crucial difference lies in the composition of their respective administrations. Papademos is the only non-politician in a government otherwise resistant to change. Thus, after only four months in office, he has already had to struggle with political posturing from within the ranks of his own administration. That pales in comparison, of course, to the resistance offered by the opposition in Parliament. There, a revived New Democracy party, led by Antonis Samaras, and the disgraced Socialist Party of former Prime Minister George Papandreou (a former roommate of Samaras’, now unsurprisingly estranged) are taking turns undermining government reforms, positioning themselves for the general elections scheduled for April.
In contrast, Monti’s government is formed exclusively of unelected technocrats who support his agenda. He was also clever enough to negotiate a period of at least eighteen months in power before taking office, promising not to run for election thereafter. This appeased the political parties in Parliament, who know they will have plenty of time to undermine him come 2013. But in the meantime, they have taken a break from the political talk show circuit and voted for reforms.
All this suggests the way technocratic administrations are formed matters crucially for their effectiveness. Ultimately, technocrats need not only the right answers, but also the political latitude to implement change. The reforms they prescribe cannot be achieved on short and strict time-tables, or, for that matter, amidst opposition from their own ministries.
But Monti has proven that, given proper political latitude to operate, technocrats do have an important role to play in Europe. Indeed, it’s no accident that they have been called upon (admittedly, with varying degrees of success) to resolve some of the continent’s trickiest debt problems. It’s precisely because they are not beholden to any particular interest groups in the present that they can more clearly consider a country’s obligations to future generations. If the technocratic administrations do as they promise, they will honor this intergenerational commitment, helping make not only the European project more sustainable, but also—by considering those that cannot (yet) voice their opinions—more fair.
After all, this is ultimately what Europeans want. The technocrat efforts of Monti and Papademos reflect the stated desire of their respective electorates for further European integration and stability. Indeed, all Europeans want to avoid a shipwreck that tears apart the continent’s paramount political project. But that project may yet run aground—all because the people of Greece didn’t realize that a fully technocratic administration would prove more effective than a political administration ruled by a technocrat.
Pierpaolo Barbieri is Ernest May Fellow at the Belfer Center for Science and International Affairs at Harvard Kennedy School. His book, Hitler’s Shadow Empire: Nazi Economics and the Spanish Civil War, will be published later this year.
6 comments
Why is this right wing trash published in this magazine? Austerity is poised to bring down Europe and America with it.
- Erik_S
January 30, 2012 at 1:39pm
As I understand, Brussel's representative to Greece (a Greek himself), who is just supposed to just calculate the actual deficit, is currently facing charges that could lead to a life sentence: http://m.npr.org/news/World/143766906 There's clearly a strong desire to fix things there! Does the ECB need a a special forces team to rescue its technocrats?
- Nari224
January 30, 2012 at 1:49pm
My two proposals/projects/demands for TNR this year are 1) address the gradual disappearance of human labor as part of human society/economics and 2) develop a TNR, Jr. edition. While #1 is also relevant to the economic crisis in Europe, here I will talk about #2. I purchased for my granddaughter a subscription to National Geographic, Jr as a Christmas present. As her co-mommies want her to be optimistic and positive and age-appropriate in what she reads, I can't buy her a sub to adult TNR. Recently, however, I had a vision of what this tyke journal would be like. As I had breakfast with my family (during our visit celebrating several birthdays), the adults somehow fell into a discussion of the European debt crisis. AE (my seven-year-old non-genetic granddaughter) asked for an explanation. I mentioned that she sometimes borrows money from future payments of her allowance [to buy an “American girl” doll, for example). http://en.wikipedia.org/wiki/American_Girl “If you don't repay the money you borrow, what will happen?” I asked her. As she is a very bright little girl, she quickly concluded that mommies would be very reluctant to advance her future loans. I offer this as an example of how TNR, Jr. could address fiscal responsibility and economic consequences. She is fairly well prepared for issues such as same sex marriage (having two mommies who live in Seattle and two daddies who live in Chicago) but TNR, Jr. could address that issue for children who might grow up thinking that marriage must be between a man and a woman. She attends an exclusive private school that makes a fetish out of diversity (skin color, ethnic background, religious belief), but TNR Jr. (some overlap here with National Geo, Jr. but that's OK) can prepare children from diversity-starved backgrounds for entering the rainbow society. And so on. Of course, TNR, Jr. should indoctrinate the little tykes on the need to be liberals, while it's at it.
- skahn
January 30, 2012 at 4:25pm
too bad skahn doesn't undertand the different principals of Keynesian macroeconomics versus family microeconomics. Maybe someday his grandaughter will.
- drofnats1
January 30, 2012 at 6:31pm
Drofnats, please submit an article explaining the different PRINCIPLES of Keynesian macroeconomics versus family microeconomics for the first issue of TNR, Jr. AE (my granddaughter) may or may not already understand these principles, and for all I know, she may already be able to analyze the insanity of English language spelling, using Thorsten Veblen's Theory of the Leisure Class in something like the following fashion: "In his influential book, The Theory of the Leisure Class (1899), University of Chicago economics professor Thorstein Veblen pointed to the mastery of the complexities of traditional spelling as one of the ostentatious ostentatious distinctions cherished by the snobbish elite. 'English orthography,' he wrote, 'satisfies all the requirements of the canons of reputability under the law of conspicuous waste. It is archaic, cumbrous and ineffective; its acquisition consumes much time and effort; failure to acquire it is easy of detection.' For all you know, the previous paragraph was written by my granddaughter. (In truth, I plagiarized it on the Internet. And I looked up the "proper" spelling of “principle” in a printed dictionary. Seriously, though, the topic you touch on seems exactly like the kind of knowledge I would like to see my granddaughter gain from such a journal.
- skahn
January 30, 2012 at 11:18pm
Ostentatiously, the word ostentation appears twice, proving that cheaters never prosper.
- skahn
January 30, 2012 at 11:19pm