A “brutal lesson in geopolitics”

France, whose contract to deliver 12 submarines to Australia for $A50 billion was unceremoniously ditched in the process. 

Consider the ambition to create a euro-dominated payments system that allows companies and states to trade independently of the US-dominated financial system. For such a system to work, it must be liquid, which means it must be able to attract other people’s money – Japanese, Chinese, Indian, and certainly US money.

This in turn requires that non-Europeans holding loads of euros have a euro-dominated safe asset in which to invest their stash for a day or for a decade. 

To prevent the type of humiliation to which Trump subjected Merkel, Europe needs a eurobond. To prevent humiliations like the one Biden has inflicted upon Macron, it needs a common military. 

But eurobonds and a common military require Europe’s national ruling classes (particularly those in creditor countries) to give up their own exorbitant power; and to embrace, instead, the radical idea of transnational voting for a transnational federal government.

Yanis Varoufakis Project Syndicate 23 September 2021

https://www.project-syndicate.org/commentary/european-leaders-to-blame-for-subordination-to-america-by-yanis-varoufakis-2021-09


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