Greece

I have to start with Greece. For many vocal advocates of a more leftwing economic policy, most notably (and notoriously) Paul Krugman), the prolonged debt crisis in the Mediterranean country has its roots in austerity politics imposed by the ‘Troika’ of the ECB, IMF, and the Eurozone Group. Without another haircut, i.e. write-off of Greek debts, and a stimulus program, Greece will not manage to recover. And recovery, of course, means GDP growth. I could argue about the deeper meaning of austerity politics in the case of Greece (or Portugal, or Spain, or Ireland for that matter) – to actually build a coherent fiscal framework for the Eurozone with shared understandings of political economy, something that has not been there in the first place and what is desperately needed in a common currency area.… Read more

The electoral victory of SYRIZA in Greece has fueled imaginations on the European left for a departure of ‘no alternative’ austerity politics. As much as a return of more imaginative politics is desperately needed in order to revitalize European democracy and save it from too much technocratic post-politics, it is rather doubtful if there really is a true alternative from a postgrowth or degrowth perspective. When looking more closely at SYRIZA’s Thessaloniki program many elements can be found that have the name of John Maynard Keynes written all over them: cutting taxes on fuel and property, raising the tax threshold, reintroducing a 13th month pension for low income pensioners, a 3bn EUR employment program sought to create up to 300,000 new jobs, and an increase in the country’s minimum wage.… Read more

Tag: Greece

Austerity and Degrowth

Groundhog day in Greece: On the missed opportunity for setting degrowth on the political agenda