European Crisis

DiEM25 was created in February 2016 because Europe was disintegrating as a result of a pseudo-technocratic takeover of the EU that was imposing austerity everywhere in response to the financial crisis caused by the EU pseudo-technocracy’s controllers. Today, now that a mindless virus has placed European capitalism in suspended animation, it is time to re-assess our analysis and to re-purpose our policies.

Later today, Thursday 23rd April, the EU Council will meet to discuss the common European response to the Great New Recession caused by the pandemic. Their agenda should comprise one, and only one, item: How to ensure that the necessary increase in public deficits will not show up in the fiscally stressed member-states’ national budgets, so as not to boost already non-viable public debt levels. If the EU Council fails in this task, the result will be massive, cruel austerity (e.g. pension and wage cuts, new taxes etc.) for the Europeans worst hit by the pandemic.

The Eurogroup approved a 500 billion package to fight the crisis. You recently wrote in the Guardian that The EU’s coronavirus relief deal is a gift to Europe’s enemies. Explain.

To begin with, the 500 billion euros is almost entirely loans. It’s exactly what Europe doesn’t need, especially like the countries that were hit the hardest, like Italy or Spain or Greece, which have the least capacity to have the necessary increase in public debt.

The debate about the economic consequences of the Coronavirus pandemic has already begun: what do you think is easier to happen? Will it be a momentary crisis or a crisis destined to change our economic system forever?

Neither. The consequences will be harsh and will not disappear any time soon. But, it will not, on its own, change the way capitalism works – even though, it is true, commentators revisit important policy changes, e.g. Universal Basic Income.

Discussing the toxic impact of the Eurogroup agreement of 9th April 2020 on Italy and Europe at large. Interviewed by Richard Quest on CNN’s Quest’s World

Europe suffered a historic defeat on Thursday night. After weeks of impasse, the Eurogroup gathering of finance ministers, whose countries share the euro, reached a decision on their collective response to the coronavirus pandemic’s economic impact. Besides constituting an epic dereliction of duty, the Eurogroup’s decision dealt a decisive blow to the foundations of the European Union – much to the delight of Europe’s critics and enemies.