July’s EU coronavirus rescue deal was hailed as a qualitative step forward for European integration but, argues HANNAH SELL, has not overcome the fundamental contradictions of the bosses’ club – which the workers’ movement must respond to with socialist internationalism.
For a large part of the previous decade the European Union (EU) has teetered on the edge of disaster. Globally the last world economic crisis that began in 2007-2008 led to the authority of capitalist elites being severely undermined. For the EU, and particularly the Eurozone, it was an existential crisis.
The weaker economies of the Eurozone, Greece but also Portugal, Spain and Cyprus, were facing bankruptcy, unable to service government debt. The institutions of the EU and the International Monetary Fund (IMF) – ‘the troika’ – demanded vicious anti-working class austerity as a precondition for those countries receiving so-called ‘bailouts’. This was against the background of an already calamitous fall in living standards. As general strikes swept the continent – with upwards of 30 in Greece alone – and the Greek anti-austerity party Syriza was victorious in the 2015 general election, the existence of the Eurozone hung by a thread. Thanks to the capitulation of the Syriza government to the demands of the troika, however, the Eurozone survived at the expense of the living standards of millions.
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