Against the Troika: Crisis and Austerity in the Eurozone

by Costas Lapavitsas, Heiner Flassbeck, Paul Mason (preface)

A radical anti-capitalist alternative to Eurozone austerity On the 25th January 2015 the Greek people voted in an election of historic importance—not just for Greece but potentially all of Europe. The radical party Syriza was elected and austerity and the neoliberal agenda is being challenged. Suddenly it seems as if there is an alternative. But what? The Eurozone is in a deep and prolonged crisis. It is now clear that monetary union is a historic failure, beyond repair—and certainly not in the interests of Europe’s working people. Building on the economic analysis of two of Europe’s leading thinkers, Heiner Flassbeck and Costas Lapavitsas (a candidate standing for election on Syriza’s list), Against the Troika is the first book to propose a strategic left-wing plan for how peripheral countries could exit the euro. With a change in government in Greece, and looming political transformations in countries such as Spain, this major intervention lays out a radical, anti-capitalist programme at a critical juncture for Europe. The final three chapters offer a detailed postmortem of the Greek catastrophe, explain what can be learned from it—and provide a possible alternative. Against the Troika is a practical blueprint for real change in a continent wracked by crisis and austerity.

Genres: Economics, Politics, Nonfiction, History

144 pages, Kindle Edition

First published January 1, 2015

Reviews

[Andy · Rating 5 out of 5]

While this was a challenging book to wade through for a non-economist like myself, ultimately by the time I finished reading this I was already looking up more works by Lapavitsas to read. If you decide to read this, though, have patience. While it is technical and deals with a lot of complex mechanics of present day economics, you'll start to grasp things as you move through the book. The second half was a much easier read by the time I got there.

Having read some Varoufakis before, whom I am a general fan of, I found that Lapavitsas (and Flassbeck) by comparison offered a very consistent and logical case for a left approach to the Euro crisis (at the time, anyways) but with a less idealistic and far more eurosceptic view --and thus-- a more practical left solution to the crisis.

The only real negative thing about reading this book for me was that it was a bit sad going through all of Lapavitsas recommendations for a left Greek government and comparing to what SYRIZA did (or more accurately: didn't) do.

In the final analysis, I say it's a good little book on the Euro crisis especially from a Greek perspective. There are parts of the books that are a bit outdated, but the underlying analysis and ideas seem very sound to me (but as noted, I am just a layperson).

[Peter Harrison · Rating 5 out of 5]

Another great subversive book on the impact of Eurozone economic policy on Greece from Costas Lapavitsas (with Heiner Flassbeck) after his "Crisis in the Eurozone" from 2012. Written before the election of Syriza in 2015 Lapavitsas makes a convincing case for the structural imbalances built into the fabric of the Euro's creation which systemically favour German exports and deliver trade surplus with the periphery. In essence the rules of the game were rigged in Germany's favour using a flawed neo-liberal analysis which has inflicted untold damage on Greece and the other peripheral countries and is not sustainable in the long term.

His prescriptions for policy action in the later parts of the book are perhaps less convincing, but it is certainly fascinating to see the path attempted by the Tsipras government (unsuccessfully as it turned out) mapped out by someone who would go on to become a minister in the government. Lapavitsas correctly identifies the pressure that would be applied by the EU (withdrawal of ECB liquidity support from Greek banks) which ended Tsipras' negotiations.

A good and insightful read for anyone pondering how to vote in the upcoming UK referendum on remaining in the EU!

[Leo · Rating 5 out of 5]

This is the definitive book on the Greek crisis, and gives a very good, concise analysis of the crisis of the European monetary union more broadly. It has also proved extremely prescient in its analysis of Syriza's strategy, and it offers a comprehensive plan for a Greek left government that accepts the necessity of Euro exit.

If it has a weakness, it is in failing to analyse the sources of opposition to leaving the Euro in Greek society opposition. This proved to be the major problem facing Syriza, but there is an argument that the leadership should have insisted on the necessity of leaving the Euro exit in the run-up to the January elections, and if they didn't win the election then so be it - the most important thing was to build up the social basis of support for a Euro exit. Maybe it is unrealistic to expect a political party to adopt a strategy not directly aimed at winning elections, but the cost of Syriza's present strategy is plain to see.

[Luis · Rating 5 out of 5]

Un muy buen libro sobre los desequilibrios estructurales de la zona euro y sobre cómo en buena medida estos son los responsables de la actual crisis. Lapavitsas no ve posible la instrumentación de un programa de política distinto al de austeridad a ultranza empujado por la troika, por lo que considera que la mejor opción para Grecia y para la UE en general es disolver la unión monetaria. Los últimos dos capítulos, centrados en Grecia, hacen ver a Lapavitsas como Casandra, pues en ellos el autor señala lo que ocurriría con un gobierno de izquierda que intentara cambiar la política económica en una dirección de menor austeridad y lo que relata el autor es casi igual a lo que le ocurrió a Syriza. Recomiendo mucho su lectura

[Andreas Kuhnert · Rating 5 out of 5]

Very good analysis going back to the core of the Eurozone crisis

[Jose Pedro · Rating 3 out of 5]

Vera interesting analysis But a bit aged already

[Dayton Martindale · Rating 3 out of 5]

I learned a lot about the Euro/Greece. And it was timely—the book sort of predicts Syriza's failure, or rather, it says what Syriza should do (written shortly before the election) and with hindsight it seems he was probably correct. But it's pretty wonky and economistic, I would've preferred a less technical treatment.

[Ed · Rating 3 out of 5]

There's a lot of insight to be gleamed from this book, but it's also very dense and requires a pretty extensive knowledge of finance. Still, it helped me understand the tough position that Greece and it's government is currently in as well as the reasons for Germany's disinterest in actually helping Greece.