An economics professor at London’s School of Oriental and African Studies, Costas Lapavitsas (born 1961) visited Barcelona last week to present his latest work, Eurozone Failure, German Policies and a New Path for Greece. In this text he advocates Greece leaving the euro, as an instrument for overcoming the country’s crisis. Critical of Alexis Tsipras, Yanis Varoufakis and Syriza (he had been an MP for the party before the third deal with the Troika), Lapavitsas is conscious that his positions regarding the EU and the euro are still in the minority among European progressives. Nonetheless, he believes that "the first step for the Left is to say that the currency union has to end."
Oriol Solé Altimira's interview with Lapavitsas was first published in El Diario. Translated by David Broder.
A year ago you were in Madrid for the presentation of the Plan B for Europe. How do you think that this initiative has developed?
The Madrid discussions were interesting, because a lot of people came and there was a good atmosphere. Nonetheless, they were politically confused, because various ideas were presented on what the Left ought to do about Europe, without any concreteness. People still think that it is possible to change the European Union. One year later, I think that this position has lost supporters. More people have realised that if we want an alternative, a different path or different strategy, we have to take radical steps also with respect to the institutions and the EU.
First published in Le Monde. Translated by David Broder.
No European sovereign, no real budget; no budget, no viable economic policy. As long as Europe does not break out of this dilemma, the Eurozone will remain mired in the vicious circle of stagnation, resentment, and conflicting responsibilities. If a budgetary federalism is out of reach, it is crucial that we can adjust exchange rates in order to give dynamism to growth and employment. And this requires leaving the currency union.
"If I told you eight years ago that America would reverse the great recession, reboot the auto industry, and unleash the greatest stretch of job creation in our history ... you might have said our sights were set a little too high." Thus boasted the former US president Barack Obama in his farewell address. But is the financial crisis really behind us? Has the strategy implemented to save the banks not, on the contrary, created the conditions for the next conflagration? Cédric Durandwrites.
An abbreviated version of this article appeared in the February 2017 Le Monde diplomatique. Translated by David Broder.
Figure 1: GDP growth in the advanced economies
Happy anniversary! On 2 April 2007, New Century Financial Corporation entered into liquidation. The collapse of this US real estate investment company — the second biggest provider of the now-infamous subprime mortgages — fired the starting gun on a financial crisis bigger than any the world had seen since 1929. Ten years on, capitalism is still yet to recover from this major shock. Growth is sluggish, under-employment endemic and the extreme monetary policies implement by central banks are reaching their limits.
The second Ιnternational Conference of EReNSEP (The European Research Network on Social and Economic Policy), "France and Europe after Brexit", was held in Paris December 2-3, 2016. Videos from the event — including presentations by Costas Lapavitsas, Heiner Flassbeck, Stathis Kouvelakis, and Cédric Durand — are available on YouTube.
The collective statement below was drafted following the conference, and signed by 25 academics, writers, and politicians.
via Wikimedia Commons.
These are critical moments for Europe. It is clear that the Economic and Monetary Union has irrevocably failed, the economies of the periphery of Europe remain in severe crisis, and the economies of the core lack any impetus. The single currency has become a tool for Germany to implement mercantilism through wage dumping and — with the support of other core economies of the EMU — to dictate “structural reforms," which create economic stagnation, poverty, and unemployment. The big corporations and promoters of neoliberalism are taking advantage of the crisis to intensify their offensive against the social and democratic conquests of the twentieth century.