First, there was the credit crunch, and governments around the world stepped in to bail out the banks. The sequel to that debacle is the sovereign debt crisis, which has hit the eurozone hard. The hour has come to pay the piper, and ordinary citizens across Europe are growing to realize that socialism for the wealthy means punching a few new holes in their already-tightened belts.
Building on his work as a leading member of the renowned Research on Money and Finance group, Costas Lapavitsas argues that European austerity is counterproductive. Cutbacks in public spending will mean a longer, deeper recession, worsen the burden of debt, further imperil banks, and may soon spell the end of monetary union itself.
Crisis in the Eurozone charts a cautious path between political economy and radical economics to envisage a restructuring reliant on the forces of organized labour and civil society. The clear-headed rationalism at the heart of this book conveys a controversial message, unwelcome in many quarters but soon to be echoed across the continent: impoverished states have to quit the euro and cut their losses or worse hardship will ensue.
'The more the state is disarmed, the more it has to show off its voluntarism'. The illegitimate and illegal French blockade at the Italian border reveals the anxiety of a Europe that has surrendered its sovereignty to finance capital, writes Christian Salmon, 20 June. Translated from the French by David Broder.
Migrants use their survival coverings to shelter from the rain on the French-Italian border
Historic moments do a lot more to shape Europe than treaties do. And Brussels’ response to the Greek ‘No’ vote on 5 July 2015 demonstrated its moral bankruptcy. The euro now appeared not as an instrument for exchange among Europeans, but as a totem in the name of which whole peoples can be sacrificed. Beyond being a financial crisis, this is a political earthquake.
During the campaign for the referendum in Greece. © Reuters