I read Janan Ganesh’s opinion piece “Europe must trim welfare to fund warfare” (March 6) and must say that political history does not support his argument. Most notably so in the aftermath of the first world war, as John Maynard Keynes argued in The Economic Consequences of the Peace.
Keynes understood that economic stability is essential for political and social peace. The punitive reparations imposed on Germany led to economic collapse, political radicalisation, and ultimately, another devastating war. Today, we must ask whether stripping back welfare and diverting resources into militarisation risks a similar destabilisation — albeit within our own borders. If we weaken the welfare state, what happens to those who are already struggling?
Keynes warned that economic hardship breeds discontent and extremism. We should heed that warning today. If we are to reinvent the welfare state, let it be in a way that ensures dignity and opportunity for all — not one that sacrifices social wellbeing on the altar of war.
What seems to be losing ground is climate policy, as its ambition is gradually being scaled back. Looking at the priorities of the new European Commission, it appears that this — rather than the welfare state — is what can be sacrificed or perhaps has already been.
Piotr Arak
Chief Economist, VeloBank,
Warsaw, Poland
