Modern Monetary Theory and the EU. Is there a conflict? What do Greens prioritise?
My understanding is that Modern Monetary Theory (MMT) and associated actions are becoming the popular economic basis of the Greens.
My understanding that at its heart MMT requires a sovereign government to issue its own currency to control its fiscal policy. This enables the kind of actions one hears being advocated. On the other hand the Eurozone forces for states to share a currency managed independently by a European Central Bank. Countries are forced to limit their deficits under the EU's Stability and Growth Pacts.
My other understanding is that for the UK to rejoin the European Union the UK would lose its opt-outs. It'd be required to join the Euro. The opt-out carved out by Gordon Brown would not longer be available.
This suggests that enacting policies consistent with MMT would not be compatible with EU membership for the UK unless the UK influenced the other Eurozone members to agree -- a difficult pathway. They are in conflict -- do people agree?
The other side:
The other side of this are deep values on ecology and climate change where undoubtably being a part of the EU is a positive step. It is also something we should wish from the perspective of European solidarity, removing borders, etc.
The UK is not well placed to be more ecologically ambitious in its pesticide policies or other concerns than the EU. So much of the UK's food is imported from the EU that it's very challenging to see how genuine divergence beneficial to ecology could happen. In fact we are witnessing the opposite where the UK's often behind EU policies.
The UK's long term climate goals are considerably strengthened by the regularity of the EU's approach along with the diplomatic and economic power of this far larger block.
It's notable that the EU is leading on innovating long haul aviation via carbon pricing but the UK can only be a follower. It's notable that the EU's introduction carbon pricing to all parts of its economy matched to social funds with the UK always a bit behind. There's no UK ETS2 seeking to rapidly decarbonise home-heating, transport, etc. like there is in the EU.
How do people see this playing out? It's not some abstract discussion as it is highly likely that there could be a coalition in 2029 where EU membership (or at least a referendum) would be on the cards if the Greens, SNP, and LibDems pushed for it.
If there is a conflict would people sacrifice some of the radical economic ideas possible from MMT to be a part of the EU? Or would they risk climate regression under a future right-wing government via being outside the EU? Where would their priorities be?