JP Morgan to eurozone periphery: “Get rid of your pinko, anti-fascist constitutions”

Blog post originally appeared on my Austerityland blog hosted at the EUobserver, on 7 June, 2013. 

At times, I do marvel how antiseptic, bland even, that the language of the most wretchedly villainous documents can be.

Last week, the European economic research team with JP Morgan, the global financial giant, put out a 16-page paper on the state of play of euro area adjustment. This involved a totting up of what work has been done so far and what work has yet to be done in terms of sovereign, household and bank deleveraging; structural reform (reducing labour costs, making it easier to fire workers, privatisation, deregulation, liberalising ‘protected’ industries, etc.); and national political reform.

The takeaway in the small amount of coverage that I’ve seen of the paper was that its authors say the eurozone is about halfway through its period of adjustment, so austerity is still likely to be a feature of the landscape “for a very extended period.”

The bankers’ analysis probably otherwise received little attention because it is a bit ‘dog bites man‘: Big Bank Predicts Many More Years of Austerity. It’s not really as if anyone was expecting austerity to disappear any time soon, however much EU-IMF programme countries have been offered a relaxation of debt reduction commitments in return for ramping up the pace of structural adjustment.

The lack of coverage is a bit of a shame, because it’s the first public document I’ve come across where the authors are frank that the problem is not just a question of fiscal rectitude and boosting competitiveness, but that there is also an excess of democracy in some European countries that needs to be trimmed. Continue reading →

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Kick ‘em all out? Anti-politics and post-democracy in the European Union

A paper I wrote for the journal of Statewatch, the EU civil liberties watchdog. It can be downloaded in full from the Statewatch website (pages 9-20).

One of the more cringeworthy moments of the last few years of sometimes ideological, sometimes street-fighting – but rarely parliamentary – combat between the European superintendents of austerity and their subjects came in October 2012 upon the occasion of German Chancellor Angela Merkel’s visit to Athens. Two Greek protesters had dressed themselves up in Nazi regalia, rode through the streets as if conquering soldiers in imitation of so many wartime newsreels, and burnt a flag emblazoned with a Swastika as a piece of radical theatre mocking the Berlin-led imposition of cuts and structural reforms. Continue reading →

Greece: “A promise from the army has been obtained to not intervene against a civil uprising”

Interview with former Greek ambassador was published in the New Statesman on 24 February, 2013.

It is always enlightening to hear the frank assessment of a diplomat upon leaving the service, once unshackled from “the patriotic art of lying for one’s country”, as 19th Century American journalist Ambrose Bierce described the craft.

Leonidas Chrysanthopoulos was a career diplomat with the Greek foreign ministry. As a junior officer with the service in the 1970s, he helped assure the then freshly democratic nation’s accession to the European Union (at the time the EEC). He was at different times Athens’ ambassador to Poland, Albania and Canada, and finally the director general of EU Affairs in the ministry.

Last year, he finally resigned as secretary general of the Black Sea Cooperation organisation, and entered the private sector, and now feels free to speak openly about his fury at what he says Europe and international lenders are doing to his country.

“At a certain moment, quite soon, there will be an explosion of social unrest. It will be very unpleasant,” he says, referring to 15 armed incidents in the previous ten days. Continue reading →