Photo by endiaferon

Europe’s economic crisis

19th May 2012 Socialist Action 0

By Jane West

As the Euro-crisis unfolds and Greece heads to new elections, the left party, Syriza is capturing the support of most of those in Greece who want to reject the austerity programme imposed by the EU.

It is striking that the impact of the world developments, and particularly the growth of the left in Latin America, has clearly interacted with this political leadership of resistance to austerity in Greece. It was recently reported in the Guardian, of Syriza’s leader, Alexis Tsipras: ‘one of his heroes is Venezuelan leader Hugo Chávez, with whom he shares the same birthday.’

Photo by Saikofish

The latest phase of the Euro crisis

10th October 2011 Socialist Action 0

By Tom O’Donnell

The foolish vanity that the current crisis in the European economy and financial markets was confined to the so-called ‘peripheral’ economies of the Euro Zone has been exposed as complacent self-delusion. Among the recent development the large Belgian-French-Luxembourg bank Dexia is threatened with bankruptcy despite already having been bailed out by the governments. Crucially, yields on French and Belgian government debt have climbed to reflect the increased risk of taxpayer funds being used for further bank bailouts. Their yield premia over Germany is now equivalent to the premium paid by Irish and Greek governments as the crisis began to unfold. The crisis has migrated from the ‘periphery’ to the ‘core’.