9781844679690_crisis_in_the_eurozone-max_221 more images image

Crisis in the Eurozone

A controversial call to break up the Eurozone and stop the debt crisis.

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.

 

Reviews

  • “This book is indispensable for anyone trying to make sense of the European Union’s implosion.”
  • Crisis in the Eurozone combines the urgency of front-line reporting with insightful detail about the players involved and mechanisms at work”
  • “The most comprehensive, thoughtful, and insightful dissection of the Eurozone’s problems. If you could only read one item on this momentous crisis, this book would be it.”
  • “The authors advocate a different approach that lies between political economy and radical economics.”

Blog

  • [Audio]: Frédéric Lordon and Cédric Durand discuss Internationalism and Democracy after the Eurozone Crisis

    On January 30, Frédéric Lordon and Cédric Durand appeared at the NYU Department of Sociology for a conversation on "Internationalism and Democracy after the Eurozone Crisis," moderated by Jonah Birch. 


    Continue Reading

  • Lapavitsas: "The left is paying the price for its conservative discourse on the currency union."

    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.

    Continue Reading

  • Abandoning the Euro Could Help Save Europe

    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.

    Continue Reading

Other books by Costas Lapavitsas Preface by Stathis Kouvelakis