There is no future for the peripheral countries inside the Eurozone
Please cite the paper as:
“Yiannis Tolios, (2014), There is no future for the peripheral countries inside the Eurozone, World Economics Association (WEA) Conferences, No. 2 2014, Greece and Austerity Policies: Where Next for its Economy and Society?, 20th October to 21st December 2014”
Abstract
The profound economic crisis gave explosive rise to core problems of the EMU structure. Dominant Eurozone elites attempt to avert the collapse of the tenuous euro – structure, by preserving its neoliberal ‘psyche’ unharmed, with austerity policies and construction of supplementary ‘pylons’. Policies and measures implemented by older and new ‘pylons’ (‘Stability Pact’, ‘ECB’, ‘support mechanism’ of EFSF – ESM, ‘Euro-Plus Pact’, ‘Fiscal Pact’, etc), lead the European peoples, especially in the periphery countries, deep towards an economic and social ‘dungeon’. Under austerity policies and neoliberal management model, the concept of ‘Europe of the peoples and workers’ is completely incompatible and historically unrealized.
Exiting the crisis for the peoples of the EU and especially the Eurozone is overthrowing the EMU class structure and re-establishing it in terms of ‘peoples and workers’. More specifically, for the peoples of peripheral countries, tearing up the ‘Memoranda’, writing off the greater part of the debt, along with overthrowing neoliberal policies, promoting macroeconomic policy for the benefit of the working people, sustainable growth and drastically reducing unemployment is a vital precondition for their existence. The concept of alternative economic policy has to be based on social needs and interests of the European peoples. It is the starting point for the ‘historical necessity’, the overcoming of finance capital domination and to the socialist perspective.
I quite agree with the analysis and statements of Dr Tolios. In fact, there is no future, first for Greece, then for the whole european periphery, but as well as for the eurozone as a whole, if the application of this fanatic neoliberalism continues. This is the reason for which since 2010 I stressed on the necessity that we should think and organise, as carefully as possible, a return to our national money. Certainely, such a decision is exposed to many risks and it would be much better if the solution could simply be the abandon of this murderous macroeconomic policy of liberalism. But, such a solution looks impossible for the time being, as long as Germany does not accept any discussion on the subject and as France which ought to react against, in a more decisive way, looks umprepared for it.But further more, I do believe that the euro cannot survive without an austerity policy as it is an hybrid money, unable to produce inflation or even deflation…in other terms a neutral money.
There are , certainely, signs that the situation will change in the eurozone as the recession continues and the perspectives are gloomy. However, my feeling is that Greece cannot expect any improvement as there is not time left in its case. After the selling of the whole Greece, and the complete dissolution of its public sector there will not exist any Greece.
In France, they created a movement called POMONE, to prepare a new monetary system for Europe, based however on the return of all eurozone members to their national money. It may be difficult but we have finally to accept that the creation of euro was a dangerous failure and find the courage of an exit. That will not concern at all the EU which will continue existing, but assuring to its members progress, equality, social state and decent full-employment.