From an economic perspective, the easiest thing to do would be for Italian entities governments, corporations and individuals to simply redenominate debts from euros into new lira. Bankruptcy laws remain an area within the purview of each of the nation states of the EU. It could simply issue script say government bonds that would have to be accepted as payment for any euro debt obligation. A decrease in the value of these bonds would be tantamount to a devaluation.
Of course, there would be a hue and cry from other members of the eurozone. But this way, Italy would leave it to the other members of the eurozone to decide to expel it. Rome could take the chance that the fractious members of the currency union would never take such strong action, since that would confirm the fraying of the eurozone. Then Italy would have its cake and eat it too. It would remain part of the eurozone but would have accomplished a devaluation.
Greece gave into being strangled by the European Central Bank. Athens was already well into creating the infrastructure an electronics payment mechanism under the new drachma that would have eased a transition out of the eurozone. Advances in technology over the past three years make creating electronic currency systems all the easier and more effective. Italy could also blunt some of the pain of its departure if it were to coordinate its exit with other countries in a similar position. The motley group of countries that now forms the eurozone is far from what economists call an optimal currency area.
There is just too much diversity, too many differences, to make it work without better institutional arrangements of the kind that Germany has vetoed. A southern eurozone would be far closer to an optimal currency area.
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And while it would be difficult to arrange a coordinated departure in a short period of time, if Italy successfully manages its way out of the euro, others will almost surely follow. Any large change in a key price in an economy is a significant perturbation. The price of foreign exchange is, of course, pivotal in any open economy.follow site
Redefining Europe’s economic sovereignty
It has knock-on effects on the prices of all goods and services. Some — perhaps many — firms will go bankrupt.
Some — perhaps many — individuals will see their real incomes decline. If the new Italian government were to successfully navigate such an exit, Italy would be better off. And so would the rest the Europe. The cost of persistent unemployment , especially among its youth, is enormous.
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Young people in their 20s and early 30s should be honing their skills in on-the-job training. Instead, they are sitting home idle, many of them developing a resentment toward the elites and the institutions they blame for their predicament. The resulting lack of formation of human capital will also dampen productivity for years to come. Europe could instead reform the currency union and provide better protection for those adversely affected by trade and migration. But in the absence of a change of direction by the EU as a whole, Italy needs to remember that it has an alternative to economic stagnation and that there are ways of leaving the eurozone in which the benefits would likely exceed the costs.
Joseph Stiglitz is a Nobel-prize winning economist and a professor at Columbia University. Norton, Join the community. Log in to access content and manage your profile. If you do not have a login you can register here. Some 7, police were mobilized in anticipation of marches in French capital.
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Its objective is to extend the Internal Market of the EU to the three participating EFTA States creating a homogeneous European Economic Area, based on common rules and equal conditions of competition and providing for the adequate means of enforcement at the judicial level. The core of these rules relates to the free movement of goods, capital, services and persons throughout the 31 EEA States. In addition, the EEA Agreement covers horizontal areas such as social policy, consumer protection, environment, company law, statistics, tourism and culture.
It also provides for participation in EU programmes such as those for research and education. The EEA Agreement does not cover EU common agriculture and fisheries policies, although it contains provisions on trade in agricultural and fish products.
It does not entail a customs union, nor does it include a common trade policy, common foreign and security policy, justice and home affairs, harmonised taxation or the economic and monetary union. Schengen is not a part of the EEA Agreement. However, all of the four EFTA States participate in Schengen and Dublin through bilateral agreements and they all apply the provisions of the relevant Acquis. The funding period covering has a total financial envelope of approximately EUR million per year.
These contributions are added to the EU budget, increasing the total financial envelopes of the programmes and agencies in question.
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There are extensive contacts and dialogue among the EEA EFTA States on Brexit at all levels, both in the regular meetings of official bodies such as the Standing Committee, and more frequently in dedicated ad hoc settings. In April, The Guardian pointed out that Facebook shifted the responsibility of managing 1. Earlier this week, Apple rolled out data and privacy tools for European customers that allowed them to download the data that Apple has collected about them and the devices they own. But here in the U. The web giant is under investigation currently by the Australian government.
The U. She said the Cambridge Analytica scandal has caused regulators to look at core issues around data transparency and protection in the U. The incident has also forced politicians to acknowledge just how far the U. In the U. Currently, a Federal Trade Commission consent decree from requires the social network to receive explicit permission from users in regards to sharing their data with third parties. Making the prospect of regulation more challenging, the U.
Effects of the Euro Changeover on Consumer Behaviour: Introduction to the Special Issue
Some senators, like Sen. The regulations ended up empowering the big banks in keeping the small banks down. Regardless, privacy advocates like the Electronic Frontier Foundation think that data privacy regulations should be high up on the national agenda.
Even beyond the complex political landscape, new data regulations provoke difficult questions about the role of social media platforms and who inherently owns and can have control over data online. There have been a multitude of bills surrounding data introduced in the past year, including the Honest Ads Act, which aims to provide more transparency for online political advertisements; and the Browser Act of , which authorizes the FTC to enforce information privacy protections allowing users to opt out of the use of their user information depending on the sensitivity of the information.
An array of consent management tools available for online companies to check in on their compliance gap monitoring and policy management do exist — including PrivacyCheq and NGData. California is also touting its California Consumer Privacy Act, another data regulation that could apply to Facebook and social media privacy. If approved, the act would enforce more transparency around data that is being stored by companies, as well as enable consumers to opt out of companies selling their data. But we want something that respects our ability to go online and have an expectation of privacy.
For the time being, however, social media platform users need to be aware of the lack of data privacy.
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