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 under two weeks time, Greece will vote on who is to lead their country after the speedy resignation of Alexis Tsipras. Below is an interview with Greece's former finance minister, Yanis Varoufakis and leading academics from around the UK. This interview was first published on The Conversation website under a Creative Commons licence.
Photo: Yves Herman/Reuters
In July, in the wake of the ‘No’ vote in Greece’s referendum, the philosopher Alain Badiou expressed his hope that a new sequence was opening up. A few hours after Alexis Tsipras’s resignation, he bemoaned the Greek prime minister and his advisors missing this ‘unique’ political opportunity.
Translated by David Broder
1 We thought that we were right in thinking that the guiding principle of Syriza, winner of the Greek elections, was a vigorous ‘No’ to austerity. As such, we thought that it would categorically refuse all the anti-social, regressive conditions – attacking the most basic principles of the aspiration to equality and a tolerable life for the people – which the various financial authorities and their European cover made the condition of their loans. Many people furthermore rejoiced in the possibility of a new political orientation finally emerging in Europe, one absolutely different from the reactionary consensus in which all states have kept their respective public opinion for thirty years, whether out of consent or by force.