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.
In late January the philosopher Alain Badiou was in Athens, where he gave three talks. The theme of the first of these was Plato, the second was on Lacan, while the third – the text of which appears below – was the most ‘political’. Each of the three talks had a packed-out audience. For this third talk, indeed, even the amphitheatre of the Law School did not suffice to contain the great number of attendees, with many of the large crowd of young people present filling out the stairs and floor. It took place on 25 January, and was jointly organised by the psychoanalysis review Alithia, the municipal elections movement Open City, and the SYRIZA youth organisation ‘Left Union’. It was supported by the Nikos Poulantzas Institute.
The principle that there is a single world does not contradict the infinite play of identities and differences
I would like to thank, and to salute, all our Greek friends, and beyond that all those who are today struggling against the terrible situation inflicted on the Greek people by the financial oligarchy that today holds power in Europe, in service of globalised capitalism.
In his rigorous review of Crisis in the Eurozone, written by Costas Lapavitsas and his colleagues from the Research on Money and Finance group, Alex Cistelecan bounces the book’s arguments off Jürgen Habermas’s The Crisis of the European Union.
What comes out of this skillful comparison is the depth of Lapavitsas’s arguments about the nature of the problems that the European Union is facing at the moment. Unlike Habermas, whose focus is mainly on the moral dimension of a problem not even dubbed a “crisis”, the kernel of Lapavitsas’s analysis is to emphasize “the profound and structural nature of these problems, and of the underlying contradiction built into the European legal and institutional construction.”