The Eurozone debacle continues. Now Italy, the third largest economy in the Eurozone, is having to pay much more to finance its debt. Yields, the interest that Italy has to pay on government bonds, have reached over 6% which is unsustainable. So that is Greece, Ireland, Portugal, Spain and now Italy which are already in, or in grave danger of falling into, the sovereign debt crisis.
The people of Europe are being asked by the leaders of Europe to pay for a crisis which is not of their making, whilst the perpetrators of that crisis, the banks and financial capitalists, are being protected. This is not just a betrayal of the people of Europe, by their elected leaders, but of democracy itself. Politicians in Greece have recently sold out Greek sovereignty to the banks, bondholders, and the financial technocrats of the ECB and the IMF by agreeing to a second bailout.
We have been sold the story that the EU is a European creation with the countries of Europe coming together in solidarity after WWII. But the EU is fundamentally an American cold war creation foisted on a weakened Europe after the war, the aim being to create and ensure a capitalist 'free' market ideological and economic hegemony in Europe, at a time when Soviet communism was seen as a real threat. Despite strongish trade unions and a tradition of social democracy, the EU is now a neoliberal state - with neoliberal 'free' market policies enshrined in its constitution. The purpose of the Euro is to pave the way for a European superstate. The aim now of politicians and financial technocrats is to reduce the living standards of workers and the middle classes, in order to create a great big bonanza for western corporations and their capitalist owners. The only thing which distinguishes this capitalist corporatist European project from fascism is the use of suits instead of uniforms and jackboots.
Having created a crisis by building a casino financial capitalism out of democratic control, and nearly bringing down the world economy, politicians and bankers have used the crisis to cut welfare and workers terms and conditions in the USA and Europe. This is straightforward class war, with ordinary people being made to pay for the failures of 'free' market capitalism. In the current circumstances the EU and its leaders are the enemies of the European people. In his excellent Guardian piece, Mark Weisbrot explains why the Euro deserves to fail. It is beginning to look like its failure may be the only hope for European democracy.
The EU may be a supertanker, but it will have to be turned round if the European people are going to be liberated from neoserfdom (neoliberal serfdom). That means a massive reform of the EU and re-writing of the constitution to remove the neoliberal shackles which bind the EU into this extreme right-wing project.