Ambrose Evans-Pritchard has an interesting column in today’s Telegraph arguing that the EU’s austerity “diktat” towards Southern Europe is creating a climate of anger, anarchy, and terrorism.
Greece’s Revolutionary Struggle detonated a car bomb at the Athens Stock Exchange in September. Citigroup’s branches have been targeted twice this year.
Hooded extremists attacked the rector of Athens University in his office this month, sending him to hospital with head injuries.
In Milan, the Informal Anarchist Federation (FAI) planted 2kg of dynamite last week at Bocconi University, the symbol of the free market in Italy.
What, specifically, is the issue?
The hard-Left resurgence cannot be blamed on monetary union as such, yet the two are linked. EMU has always been viewed as a capitalist conspiracy – a “bankers’ ramp” – in Left-wing circles. While their view may seem odd to us, they are entirely right to think that poor people in certain countries are victims of the experiment.
Unemployment is 19pc in Spain (43pc for youth) on Eurostat data. Greece is catching up fast. Labour minister Andreas Loverdos said Greek joblessness has jumped above 18pc over the last two months as EU-funded workfare schemes expire.
This will get worse. Southern Europe is being ordered to carry out IMF-style austerity, without the IMF-style devaluation required to rectify the massive imbalances that have built up between North and South under the euro. The victims are caught like France and Germany under the Gold Standard of the early 1930s, when society was broken on a wheel of deflation decrees.