Fighting Austerity:Refounding the European Union

Development Research Seminar Series.

Theme: Social Policy After the Financial Crisis

Abstract

Historically, a banking crisis has been known to be followed by an economic crisis – i.e., a loss in output, a rise in unemployment and a worsening of public finances, amongst other effects.  The present crisis is no exception.  However, what distinguishes it from other crises is the relentless pursuit of austerity as a means of overcoming it.  So much so, that it may be argued that austerity is a political project, rather than an economic necessity, as David Harvey has noted. 

This is especially so in the case of the European Union, where ‘austerity’ is nothing short of a dogma for the ruling elites.  So far, austerity policy in Europe has produced economic destruction, human suffering, the forced rebalancing of social groups, whereby the ‘haves’ are being sharply set apart from the ‘havenots’.  These phenomena are especially evident in the countries of S. Europe and even more so, in those that have been singled out by the financial markets as the weak links in the Eurozone. 

Under these conditions, what to do, is a pressing question.  There is no unique answer to such a question.  However, some basic elements of policy may be outlined.

• Halt the process of impoverishment of society and alleviate poverty;
• Reverse the process of austerity;
• Establish socially and environmentally sustainable growth;
• Reconstitute the basic elements of a social provisioning state, including education and healthcare;
• Refound the European Union, starting with the Eurozone.

The above guidelines start from an immediate perspective and the most pressing needs, advancing to a long-term goal. 

A requirement for such an agenda to take off the ground is the building of social and political alliances within and across EU member states, the ultimate aim being to mobilize public opinion and to convince it of the futility and even dangers of the present path. 

This is an especially difficult task in view of the fragmentation of the left, the decline of the trade union movement and the still weak social movements.  However, such a route needs to be pursued with great urgency, in view of the rise of the extreme right (fascist in some cases), which finds fertile ground in the dismantling of society and of the social provisioning state.

Powerpoint Slides

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For any further queries, please contact Tanya Kingdon, kingdon@remove-this.iss.nl