What we have identified so far are the negative results of an aggressiveneoliberal form of European symbiosis. It is quite obvious that themechanism of euro did carry the day to the benefit of capital; yet withmajor contradictions.So, we have to keep in mind the following major results: debt surging(sovereign and private), imbalances, financial inter-indebtedness and afragile banking system.
3. The debt trap in the European context
If you ponder over the data and the projections with regard to sovereigndebt, you will find out that most of the European economies are
pretty much on the same footing.This is the other key lesson of the capitalist development of the last 15years. The state has become the last resort guarantor of the risk incurredby the financial system. This means that even countries with solid publicfinances had to socialize the financial exposures turning them into publicdebt. From another point of view, private debt is a kind of
publicdebt always ready to move from private portfolios to public balancesheets. In this sense, it is involuntarily supported by the taxes of theworking classes. Contemporary capitalism transforms workers into
(to paraphrase the title of Polansky’s recent movie) of ahighly liberalized financial system.Without doubt, the fiscal problems of Greece and Ireland are exceptional(the future of Portugal and Spain is uncertain as well).
Yet the mainproblem for Europe is not debt per se but the fact that financial marketshave become so fully integrated and leveraged that they can be noisolated or unilateral solutions without too much cost and misery for theworking people
. Every competitive national strategy has outrightimplications for the others.