|Greece has voted decisively to reject the latest demands from the European Union for austerity economics.|
This is a particularly pernicious form of political economy - it holds that balanced budgets are key for governments, whose involvement in society should rarely extend beyond basic policing and the military (although in practice it actually extends to providing subsidies and handouts to the big corporations that fund our political masters, either via bailouts viz the banking system or "private finance initiatives" and outsourcing of services such as health and education at criminally high costs to the taxpayer).
|Syriza's Varoufakis and Tsipras|
The counterpoise to this - the investment-led approach of Keynesian economics - is somewhat more humane (albeit not necessarily an exclusively socialist response). It sees social objectives, primarily the minimisation of unemployment, as a key objective. Here, Governments will borrow or even just print new money to keep demand going in the economy, keeping activity moving so that people stay in work - this reduces the cost of out of work welfare and increases tax take, so that in time, if useful, the deficit can be reduced or eliminated without ruining the lives of ordinary people. As Keynes said of those who would leave things for the market to somehow work things out in the longrun, "In the long run, we are all dead." Economics should serve society; social objectives should be their sole purpose, not the enrichment of an ever -smaller circle of owners and shareholders.
However, the neoliberal elite who came to dominate our political landscape as well as the economy during and since the 1980s have made several key changes that undermine the potential for investment-led economics. They removed many of the controls on money and globalised the movement of capital; and they gave banks the right to create new money out of nothing - a ludicrous and highly dangerous arrangement that led to the 2008 crisis and continues to this day.
In this context, we have seen Greece previously be forced to accept an unelected Prime Minister to impose the diktats of the ECB on its people. This was being openly contemplated again in Berlin last week as Merkel and her gang felt bullish about a Yes vote in the referendum cutting the legs from under the elected Syriza government. This is the same mindset that reportedly led to some bankers allegedly opening a book on whether or not there might be a military coup d'etat to "solve" their problems with the irritant of democratically elected Greek politicians not going along with inflicting ever more misery on their people.
Greece has said no to the austerity that is at the cold heart of Europe now. But the only real option for the Hellenic democracy is to now leave the Eurozone as quickly as possible. With the drachma restored, they would be free to adopt an investment-led recovery, restore their battered public services and revive their economy. In doing this, they would be leading the way for democratic forces across Europe to rise and turn our fractured societies away from the austerity that has left Britons to choose between heating and eating, Spaniards to watch their health services crumble and youth unemployment soar, and Greeks to see their country unravel around them, their young and their rich taking flight abroad.
For some of us on the progressive left in Britain, until now reluctant supporters of the European Union as at least some form of minimal defence against the corporatocracy, the treatment of Greece (and of Portugal, Spain and Italy) demands we revisit our views ahead of the British referendum. The Europe we seek, one that puts people and planet before the profit of big companies and the demands of our elite, is not on offer.
It may feel uncomfortable to be on the same side of the fence as the likes of UKIP, but is it any easier standing alongside the three pro-EU, pro-TTIP, pro-austerity parties coalesced under David Cameron? At the very least, the debate must be had - why should any progressive wish us to remain part of this "ever closer union" that would willingly, even enthusiastically, destroy one of its own? Can this project be saved from itself? How do we get a social Europe genuinely on the agenda? Or do we need to break away to come back together in something more constructive and sustainable?
It is a vote for a future that is about people, not profits.
From the birthplace of democracy, it is a vote for all of us.
|Athens was the birthplace of European democracy: this ballot said "No" to Themistocles in a vote 2,400 years ago.|