Austerity

Austerity policies (for some more general considerations on austerity see here)  in Belgium are not new – and a 2013 study by Oxfam about

THE TRUE COST OF AUSTERITY AND INEQUALITY

may provide a glimpse at the problem. And it clearly shows the tensions that are not least caused by the European Union policies. So, it is no wonder that we find no measures against countries as Hungary where we find an ongoing battle about the attempts of the Orban-Government to criminalise homelessness and the homeless – relative success stories, informing us that the

Hungary Supreme Court Allows Homeless Back on Streets

are surely overshadowed by the fact that the same policy is now pursued by different means, as according to the same source now

The bill allows district local councils to rule certain areas as prohibited for the homeless. [1]

Of course, it still is a success, not least as we have to recognise in this context that

Civil Rights Groups Rally against Ban of Homeless from Public Areas

But, coming back to Belgium, there is more to it:

In short we may speak of a “convergence” of policies in Europe against homelessness as policies against the homeless.

Noteworthy is that austerity policies in Belgium are increasingly virulent.

In consequence not least of this Belgio-European political course we find that the scale of poverty increased tremendously recently, doubling in just four years.

But that is not all – these dramatic cuts in personal lives are going hand in hand with the redefinition of public spaces and the responsibility of private.

If EUrope really wants to claim its roots in ancient traditions (which is surely dangerous in some respect, e.g. if we think about the abduction of Europe by Zeus)[2]/[3] there would be good reason to revisit for instance Cicero’s work stating in paragraph 22 of the first book of De Officciis

Sed quoniam, ut praeclare scriptum est a Platone, non nobis solum nati sumus ortusque nostri partem patria vindicat, partem amici, atque, ut placet Stoicis, quae in terris gignantur, ad usum hominum omnia creari, homines autem hominum causa esse generatos, ut ipsi inter se aliis alii prodesse possent, in hoc naturam debemus ducem sequi, communes utilitates in medium adferre, mutatione officiorum, dando accipiendo, tum artibus, tum opera, tum facultatibus devincire hominum inter homines societatem.

Steven Hill argues that

Europe … was founded on a feudal and Catholic value system which believed that the exercise of privilege by the wealthy came with wider social obligations beyond mere charity. Typical of this view, St. Augustine in the 5th century AD declared, “He who uses his wealth badly possesses it wrongfully.”

But even in Northern American law we find, according to Gregory S. Alexander the notion

that American property law, both on the private and public sides, includes a social-obligation norm, but that this norm has never been explicitly recognized as such nor systemically developed

Sure, engaging in this debate would open a wide field – Aquinas, for instance can be interpreted in both ways, as supporter of equality and inequality alike, as advocate of accumulation and modesty. And there would also be the need to discuss the “translation” of ancient traditions (not only of Christianity but also of Islam and all the others) into “modernity”.

In any case, the reality is rather simple: the public, the common, the general interest had been redefined by these European institutions – and they are further redefined – giving the power away to private bodies that are now building their fortresses within the fortress.

Looking at this fortress then, here the recent excessively violent form, it remains to be discussed if it is in line with Article 1 – Protection of property of the Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms [4]

Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.

The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties.

Sure, looking at the formulation of this passage from the protocol shows the entire dilemma: lawful is what is said by the law and the law says what the lawmakers say.

There can only be one conclusion then: we need a law made by the people and not for the people …. – and of course, for this we need the public spaces.

Otherwise, there are too many ways of people being killed – and some are slower than this, but not less brute.

 

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[1] Hmmmm …: I opened the Wall Street Journal website for several times now and there is always the same ad coming up: “Discover your Perfect Home”

[2] see Maria Mies: Europe in the Global Economy or the Need to De-Colonize Europe; in: Peter Herrmann (Ed.): Challenges for a Global Welfare System: Commack, New York: Nova Science Publishers, Inc.; 1999: 153-171; here: 160 f.

[3]            see in this context also the reflections SURELY PROVOCATIVE – THE STAGING OF ‘RUSALKA’ and EUROPE ANCIENT AND PRESENT

[4] as amended by Protocol No. 11 (Paris, 20.III.1952 – according to the provisions of Protocol No. 11 (ETS No. 155), as of its entry into force, on 1 November 1998)

Natale – alcune cose non cambiano

– A proposito, – soggiunse il burattino, – per andare alla scuola mi manca sempre qualcosa: anzi mi manca il più e il meglio.
– Cioè?
– Mi manca l’Abbecedario.
– Hai ragione: ma come si fa per averlo?
– È facilissimo: si va da un libraio e si compra.
– E i quattrini?
– Io non ce l’ho.
– Nemmeno io, – soggiunse il buon vecchio, facendosi tristo.

E Pinocchio, sebbene fosse un ragazzo allegrissimo, si fece tristo anche lui: perché la miseria, quando è miseria davvero, la intendono tutti: anche i ragazzi.

Collodi, Carlo, 1183: Pinocchio

… What is really needed …

“I am very sorry, sir,” said Bob. “I am behind my time.”

“You are?” repeated Scrooge. “Yes. I think you are. Step this way, sir, if you please.”

“It’s only once a year, sir,” pleaded Bob, appearing from the Tank. “It shall not be repeated. I was making rather merry yesterday, sir.”

“Now, I’ll tell you what, my friend,” said Scrooge, “I am not going to stand this sort of thing any longer. And therefore,” he continued, leaping from his stool, and giving Bob such a dig in the waistcoat that he staggered back into the Tank again; “and therefore I am about to raise your salary!”

Bob trembled, and got a little nearer to the ruler. He had a momentary idea of knocking Scrooge down with it, holding him, and calling to the people in the court for help and a strait-waistcoat.

“A merry Christmas, Bob!” said Scrooge, with an earnestness that could not be mistaken, as he clapped him on the back. “A merrier Christmas, Bob, my good fellow, than I have given you, for many a year! I’ll raise your salary, and endeavour to assist your struggling family, and we will discuss your affairs this very afternoon, over a Christmas bowl of smoking bishop, Bob! Make up the fires, and buy another coal-scuttle before you dot another i, Bob Cratchit!”

Charles Dickens, 1843: A Christmas Carol, A Ghost Story of Christmas

 

Eine andere Weihnachtsgeschichte

Unser Alltagsleben besteht aus lauter erhaltenden, immer wiederkehrenden Verrichtungen. Dieser Zirkel von Gewohnheiten ist nur Mittel zu einem Hauptmittel, unserm irdischen Daseyn überhaupt, das aus mannichfaltigen Arten zu existiren gemischt ist. Philister leben nur ein Alltagsleben. Das Hauptmittel scheint ihr einziger Zweck zu seyn. Sie thun das alles, um des irdischen Lebens willen; wie es scheint und nach ihren eignen Äußerungen scheinen muß. Poesie mischen sie nur zur Nothdurft unter, weil sie nun einmal an eine gewisse Unterbrechung ihres täglichen Laufs gewöhnt sind. In der Regel erfolgt diese Unterbrechung alle sieben Tage, und könnte ein poetisches Septanfieber heißen. Sonntags ruht die Arbeit, sie leben ein bißchen besser als gewöhnlich und dieser Sonntagsrausch endigt sich mit einem etwas tiefern Schlafe als sonst; daher auch Montags alles noch einen raschern Gang hat. Ihre parties de plaisir müssen konvenzionell, gewöhnlich, modisch seyn, aber auch ihr Vergnügen verarbeiten sie, wie alles, mühsam und förmlich.

Den höchsten Grad seines poetischen Daseyns erreicht der Philister bey einer Reise, Hochzeit, Kindtaufe, und in der Kirche. Hier werden seine kühnsten Wünsche befriedigt, und oft übertroffen.

Ihre sogenannte Religion wirkt blos, wie ein Opiat: reizend, betäubend, Schmerzen aus Schwäche stillend. Ihre Früh- und Abendgebete sind ihnen, wie Frühstück und Abendbrot, nothwendig. Sie können’s nicht mehr lassen. Der derbe Philister stellt sich die Freuden des Himmels unter dem Bilde einer Kirmeß, einer Hochzeit, einer Reise oder eines Balls vor: der sublimirte macht aus dem Himmel eine prächtige Kirche mit schöner Musik, vielem Gepränge, mit Stühlen für das gemeine Volk parterre, und Kapellen und Emporkirchen für die Vornehmern.

Die schlechtesten unter ihnen sind die revoluzionairen Philister, wozu auch der Hefen der fortgehenden Köpfe, die habsüchtige Race gehört.

Grober Eigennutz ist das nothwendige Resultat armseliger Beschränktheit. Die gegenwärtige Sensazion ist die lebhafteste, die höchste eines Jämmerlings. Über diese kennt er nichts höheres. Kein Wunder, daß der durch die äußern Verhältnisse par force dressirte Verstand nur der listige Sklav eines solchen stumpfen Herrn ist, und nur für dessen Lüste sinnt und sorgt.

Novalis, 1798: Blüthenstaub

things in perspective

Yes, the development of Cuban-USNA-relationships is great. Still, there are some things a bit worrying, for instance if we read in a

FACT SHEET: Charting a New Course on Cuba

we read

… it does not serve America’s interests, or the Cuban people …

There are many more interesting aspects in the formulation that provokes some thoughts … – about who states and people are, about what is good and what is bad …

One source we should not forget when following the debate is surely the one from Cuba itself.

50 Cent – the price of behaving sustainably

Returning from Milano with Trenitalia, listening to

Joseph Stiglitz:
Restoring Growth and Stability in a World of Crisis and Contagion

Somebody passes, and puts a leaflet on every table a leaflet: itinerRe per le Frecce

EasyFood – comodamente al tuo posto

Tutti i menu a solo 1 €

On top of it: one is encouraged to pay by credit card. The young woman walks back and passes a short time later with the little “mobile bar”. I ask for a coffee but she makes me now again of the special offer which I refuse to buy – finally I just want a coffee.

Certo, 1.50

I stick to my decision, pay, take my coffee

No, grazie; senza zucchero.

take the headphones again and go on listening to the Stiglitz, presenting his ideas about how we get back on the growth path of the economy, increasing the GDP.

Still, I hear as well the words of non-understanding the lady says to the person sitting somewhere nearby:

I offered him this special menu, but he wanted just a coffee ….

both shaking their head.

… Restoring Growth …

As one can listen to Stiglitz without watching I look at the gentleman, enjoying his 1€-EasyFood-menu – he decided for

  • Caffè
  • Succo
  • Croissant
  • Biscotti

all taken out of the paper bag. At least he takes the sugar for his coffee which not everybody would do.

I am a bit torn, experiencing this ambiguity: I failed, did not properly contribute to growth which surely would in some way do good to the Italian economy; I just did not take up on the offer, throwing away

  • Succo
  • Croissant
  • Biscotti
  • Zucchero
  • the bag
  • the little “spoon”
  • the napkin
  • …

Sure, something good I see later: the leaflets are collected towards the end of the journey, and I hope it is for reusing them.

I do not feel too bad, I paid 50 cent, the additional charge for contributing a little bit to protecting the environment, which surely does in every day good to the Italian economy.

Two background noises that come to my mind on this occasion – do not say they do not belong here.

The first one

The other day I picked up the METRO. Il quotidiano gratuito.

The headline on page two:

Salvini balla da solo e punta a Palazzo Chigi

It is about the Lega Nord attempting to move south.

The headline on page three:

Medico e architetto ambulanti per forza

It is an article about a young couple, well educated and starting their career in precarity.

The second one

We all know about the recent success, La Repubblica writing about it under the hedaline

Cuba, la caduta del Mura

We talked about it more or less extensively with Soraya, Hugo, Orietta, José … many other colleagues and comrades from Bolivia, Cuba …. It had been the ever present matter – one that employed the mind. Sure, it is also allowing growth which surely would in some way do good also to the Cuban economy. But …, well, there is a but right?

PS: There is another point on Cuba, the the vulture capitalists already lowering the height of their flight.

The Big Formula – and a “look between the windows”  – or a Pre-Christmas Story

I walked back from the library where I had been working during the day – a few days before Christmas 2014 – elaborating a formula that makes it possible to formulate (of course, no formula can calculate) schemes of (dis-)integration of societies – I left my scooter near to the office, so I have to walk down the Via dei Condotti, one of the most luxurious shopping malls in Rome, at this time of the year probably also one of the busiest places in town although many are here just for window shopping, the displays full of surprises showing that the world is a stage, and lost its sense.

It is not often that one sees it, that I see it (may be that I am not often enough walking through the city): a more or less young man, a man in “his best years”, obviously foreigner, migrant, being dragged by another man – “private security” is written on his jacket. That he has to look after his bike while dragging the other along the street does not make things better. A few people turn around … – few people turn around, watching the scene. – What could one do, what we see is most likely legal, according to the letters of the law.

A few meter further: one policeman, one policewomen, their car standing in the way, but still leaving enough space for a large Merc to pass and turn from one of the side streets into the narrow mall; enough space for the not smaller BMW that follows. I am not aware of a sign that limits traffic here but even of their would be –

Wound for a wound, eye for an eye, tooth for a tooth

Leviticus 24:20

But here it about something else:

sign for a sign

And of course it is telling – it is also part of the formula on which I had been working – that we find this division of labour between private security service and police, executing sovereign tasks.

Via dei Condotti, one of the most luxurious shopping malls in Rome, at this time of the year probably also one of the busiest places in town although many are here just for getting absorbed by the window dressing of our societies.

Yes, plural as it is only by accident that I see it here; there are so many other places like it, and many more…

Greek elections and financial market upheavals

Guest Contribution by Marica Frangakis[1]

On 9 December the Greek Prime Minister, Antonis Samaras, called for early presidential elections for December 17. On the same day, the Athens Stock Exchange fell 13 pc, the biggest one-day drop since 1987. Further, yields on 3-year Greek debt exploded by nearly 300 basis points to 9.52 pc, while Italian and Portuguese yields also increased noticeably. What is the underlying rationale of these developments in the financial markets? What is the latest stage in the Greek saga that began in 2010? We shall probe into these questions and try to provide some answers.

According to the Greek constitution, parliament must elect a new president one month before the end of the incumbent’s 5-year term, which in this case ends in March 2015. Following the announcement of early elections, the first presidential vote takes place on 17 December and, if this fails to achieve a majority of 200 (out of 300) members of parliament, the vote will go into a second round on 23 December, again requiring a 200 vote majority. If in the third and final round to take place on 29 December, the present government coalition fails to obtain the lower requirement of 180 votes, snap parliamentary elections will be held by early February 2015.

The probability of the government’s presidential candidate to be elected by the present parliament is slim. This is because the government coalition of the conservatives (New Democracy) and the socialists (PASOK) has 155 seats in the Greek parliament. Thus it needs to convince 25 additional MPs to support its candidate. Although it could co-opt support from other parties and independent MPs, it is unlikely that it will succeed to secure the required quota of 180 votes. Therefore, early parliamentary elections (20 months ahead of schedule) will have to take place. However, why does a legitimate constitutional process cause such a furore in the financial markets? Why has it led to an instant downgrading of Greek government bonds?

The reason is that the main opposition party SYRIZA (Coalition of the Radical Left) is predicted to win the next parliamentary elections. Its appeal to the Greek electorate has been increasing in leaps and bounds since 2009, when it registered 4.9% of the vote in the October elections of that year. For example, in the European parliamentary elections of May 2014, SYRIZA obtained 26.6% of the vote, as compared with New Democracy’s 22.7%. The prospect of a SYRIZA government is unsettling for the financial markets, given that it is highly critical of the ‘cure’ applied to Greece since 2010, which has resulted in five years of depression believed to be ‘longer and deeper than Europe’s worst episodes in the 1930s’.[2]

Brute austerity has been applied in Greece since early 2010, resulting in the shrinking of the economy by almost 30%, as consumption and investment, both private and public, continue to contract, while exports do not make up for the deepening gap in demand. Unemployment has almost trebled reaching 26% of the labour force, hitting especially hard women and the under-25s, while a brain-drain to the US, Canada, Australia, Germany and the UK is taking place, as young, qualified Greeks leave the country in large numbers. Long-term unemployment and poverty are on the rise, making for an explosive situation, as the public services – health and education – have deteriorated irrevocably due to spending cuts.

The prescription of the European Commission, the European Central Bank and the IMF (the Troika) for Greece has failed miserably even on its own terms. In particular, the public debt increased from 109.3% of GDP in 2008 to 174.9% in 2013, in spite of a debt restructuring exercise in 2012, which was however funded by new public borrowing.

The dire economic and social consequences of the failed policies implemented in Greece have led to a political re-ordering of great proportions, as the traditionally large parties – New Democracy and PASOK – have lost in credibility, while SYRIZA is gaining in support. At the same time, the fascist party, Golden Dawn, has grown steadily in popularity over the course of the crisis, obtaining 9% of the vote in the 2014 European elections, in spite of the fact that its leadership is in jail for criminal conduct!

Overall, Greece is at the cross-roads. It is very likely that national elections will be held in early 2015. Should this happen, SYRIZA will most probably be called upon to form a government. This will have to deal with a large number of especially difficult problems, including not only the humanitarian crisis faced by large sections of the population and the collapse of the Greek economy, but also the high financing needs of more than €20 billion (11% of GDP) in 2015.

SYRIZA is committed to renegotiating the deal with the EU and the IMF. It will seek some form of debt relief, so as to halt the downward spiral Greece finds itself in and set the economy back on track. Such a renegotiation may well open the way for a meaningful restructuring of the Eurozone architecture, which has been an integral part of the euro- crisis. The more smoothly this is done, the fewer the repercussions on the financial markets.

Should Greece’s Eurozone partners, however, refuse to enter into such negotiations, this will cause a new wave of speculative betting in the financial markets, destabilizing them yet again and reviving the risk of contagion to other Southern European countries, such as Italy. Furthermore, such a refusal will have severe political repercussions, since it would risk humiliating not only the Greek, but also the European Left, while it would drive greater sections of the population to the far-right in Europe.

___________

[1] Independent Researcher (frangaki@otenet.gr); Member of the Board of Nicos Poulantzas Institute (www.poulantzas.gr); Member of the Steering Committee of the EuroMemo Group (www.euromemo.eu)

[2] Evans-Prichard, A, 2014, Greek candidate willing to call European leaders’ bluff, The Telegraph, Dec 10