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Thursday, April 24, 2014

An Exit From the Eurozone a Taboo For SYRIZA --- But Not For Society?

"You know I never said that an exit from the Eurozone is in and of itself the solution to all of our problems. It is however a prerequisite. The issue for Greece is not to leave the euro and to go to a national currency. The country needs deep changes to the state mechanisms, to the economy, deep changes at all levels. We all know the inequalities, the social harshness, the poverty, the general difficulties in the economy. Consider as well that the Memorandum camp also flies the flag of ‘reforms’. There have been major social changes and cuts in our country in recent years, but they are cuts that make things worse for society and the labour force. That is not by chance. The euro is an institutional framework, a framework of power which favours conservative changes - that is the changes in the social structure that favour capital".

A very interesting interview with Costas Lapavitsas, professor of Economics at the School of Oriental and African Studies (SOAS).

4 comments:

  1. Trully, the fact that " the country needs changes to the state mechanisms to the economy, deep changes at all levels " would be much easier to implemented without euro, is something interesting-practical to watch herr Klaus?
    "The inequalities, the social harshness, the povetry the general difficulties in the economy " would be for sure less without euro, he is right !
    Probably what Prof Lapavitsas support is treated as "counterbalance" to the general perception in favor euro (especially to elderly--- not young). There is one perception and the other.
    Practical measures which will help most of us still do not implemented.


    MS

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  2. The retort of euro supporters has always been one of "two wrongs make one right".

    Euro bashers like me have always said that the permanent fiscal consolidation that the Eurozone membership requires would choke the economy after such an enormous balance-sheet depression.

    The continuous response of euro supporters has always been to point out the hypothetical evils of a national currency, namely high inflation, exchange-rate devaluation, and lack of reforms.

    So here we are now, still in the Eurozone and experiencing deflation (and the predictable debt overhang), exchange-rate appreciation, and lack of reforms.

    Duh.

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  3. The exit from the euro is not a taboo for SYRIZA. It is a sort of taboo for the "right wing" of SYRIZA, but even that comes and goes. Other times they say "we want the euro, but not at all costs", other times "we will stay", depends on polls.

    There is however a considerable force inside SYRIZA that has always been against the euro. SYRIZA is composed by many lesser forming parties. About 12-13. The left wing has several small parties, the biggest of which is "Left patform", which in the last SYRIZA elections, got 33% of the votes for the general assembly of the party.

    It's leader is Lafazanis, who a few days ago, again, asked for discussion for a plan for exit from the euro, unilateral cancellation of the "crushing majority of the debt" and statalization of the banks.

    http://www.protothema.gr/politics/article/370012/tsipras-apadisi-sta-shedia-tis-adidrasis-i-niki-tou-suriza-stis-euroekloges/

    Prof. Lapavitsas ideologically, belongs to KKE (the comunist party), although there were reports that there have been proposals to put him in SYRIZA's europarliament electoral list, as well as Prof. Varoufakis. The evil rumours, say that both of them were cut out after reaction of their respective sides inside SYRIZA. Lapavitsas was cut off, after reaction of the left (pro-dracma) wing, while Varoufakis of the right (pro-euro) wing. Of course, prof. Varoufakis rejected everything, saying that there was never a case of him being candidate. Why would their respective wings want them out? Well, according the same venomous newspaper articles, because there are already all too many economic professors inside SYRIZA, who don't want more cocks inside the hens house, especially 2 other professors that are very good in comunication and could potentially put them under their shade and eclipse them.

    Of course, like i said, this information comes from venomous articles in a wide-spread newspaper that supports center-left.

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  4. Just to support what i wrote earlier. This is from the official text-declaration that was approved by yesterday by SYRIZA's assembly:

    "No sacrifice for the euro. If we will be blackmailed by the creditors, we will cease payments".

    http://www.protothema.gr/politics/article/373503/suriza-kamia-thusia-gia-to-euro-stasi-pliromon-an-mas-ekviasoun-oi-daneistes/

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