The EU crisis pocket guide
The Transnational Institute has produced a terrific pocket guide on the financial crisis in the European Union, called, not surprisingly, ‘The EU Crisis Pocket Guide’. It’s a very handy alternative to reading about 257,000 words of confusing and jargon-heavy tripe authoritative commentary written by hopelessly compromised economist-blokes commentators and observers of the financial scene.
‘The EU Crisis Pocket Guide’ tells you, as straight as a punch to the chin, how a crisis made in Wall Street was made worse by EU policies, how it has enriched the 1% to the detriment of the 99%. It doesn’t stop at that – quite unlike the boring and largely clueless economist blokes who take great delight in pointing out a problem but have little to say about how to solve it, keeping the 99% in mind.
In keeping with the civilised socialist tendency therefore, ‘The EU Crisis Pocket Guide’ outlines some possible solutions that prioritise people and the environment above corporate profits.
What ‘The EU Crisis Pocket Guide’ contains: How a private debt crisis was turned into a public debt crisis and an excuse for austerity; The way the rich and bankers benefited while the vast majority lost out; The devastating social consequences of austerity; The European Union’s response to the crisis: more austerity, more privatisation, less democracy; Ten alternatives put forward by civil society groups to put people and the environment before corporate greed; Resources for further information.
I am much obliged to the peerless Links International Journal of Socialist Renewal for calling our attention to this absolute gem of a guidebook. Links, if you didn’t already know, promotes the exchange of information, experience of struggle, theoretical analysis and views of political strategy and tactics within the international left. You are well advised to read it regularly.
Much of the so-called debt crisis was caused not by states spending too much, but because they bailed out the banks and speculators. European Union government debt had actually fallen from 72% of GDP in 1999 to 67% in 2007. It rose rapidly after they bailed out the banks in 2008. Ireland’s bank bailout cost them 30% of their national output (GDP) and pushed debts to record levels.
As austerity cuts swept Europe, the numbers of the wealthy in Europe with more than $1 million in cash actually rose in 2010 by 7.2% to 3.1 million people. Together they are worth US$10.2 trillion. The five biggest banks in Europe made profits of €28 billion in 2010. There are 15,000 professional lobbyists in Brussels, the vast majority of them representing big business.
European Union’s answers to the problem? More austerity. In the UK, 490,000 public sector jobs are being cut; in Ireland, wages for low paid workers have been reduced; in Lithuania the government plans to cut public spending by 30%. The EU is planning to impose requirements by 2013 that means that no European member state countries can have a budget deficit of more than 3% of GDP or a public debt of more than 60% of GDP which will mean even more austerity.
Alternatives from the 99% – Clearly, there is a strong need to break with the dangerous free market fundamentalism that has created and worsened a social crisis of vast proportions. Here are some proposals for alternatives – put forward by many civil society groups – that could create a fairer and more just world.
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