Costas Lapavitsas - The Left Case Against the EU

Much of the debate around Brexit in the UK has been dominated by the idea that essentially the right-wing voted against the European Union and the left supported the institution. This is in sharp contrast to the debate when Britain joined the EU when the majority of the left opposed entry to the Common Market. In this important new book Costas Lapavitsas demonstrates the real role of the EU. For left-wingers, he argues, the EU is not to be celebrated. It is a capitalist instrument and is particularly geared towards imposing a neo-liberal agenda on its constituent countries. As he writes:

The EU and the EMU [European Monetary Union] are not a neutral set of governing bodies, institutions, and practices that could potentially serve any socio-political forces, parties, or governments, with any political agenda, depending on their relative strength. Rather, they are structured in the interests of capital and against labour. They have also gradually become geared to serving the economic advantages, and there by the international agenda, of a particular dominant class, above all, German industrial export capitalists.

He continues a few pages later,

EU member states are also capitalist states, and class relations are fundamental to their make-up as well as to their interactions. The resilience of the nation state in Europe is linked to maintaining the balance of class relations in each country, thus requiring command over the structures of judicial, military, administrative and other power. Class relations mark the interactions of each member state with the union but also among member states, determining the interests that are to be defending and promoted. 

In other words, two factors dominate policy of the EU - the class struggle within the nation state and the competition between states. Lapavitsas spends a good deal of this book showing how this works in practice, his emphasis, as the first of the two quotes above suggests, being the role of German capitalism within the EU. Lapavitsas argues it is because German capital has been able to hold down wages of workers at home that enables it to be the dominant economy within the EU. Germany was able to take advantage of the post-1989 East European economies (particularly their low wages) as a source of workers and markets. This, combined with what Lapavitsas calls the "defeat" of German Labour in the 1990s, means that the country had a competitive advantage over the rest of the Euozone.

It also meant that when the Euro was setup Germany was the natural economy to "anchor" the currency to. This had fatal consequences: "The core of the EMU is also riven with profound instability owing to the persistent gap in competitiveness between Germany... and France and Italy." Lapavitsas continues:

By 2017, Germany had imposed its will on the EMU and the EU, pacifying the crisis within the confines of the EU. The dysfunctional regime of the euro was actually hardened, thus solidifying the advantages of German industrial exporting capital, particularly as Germany has refused even to consider changing its domestic politices. German exporting capital continued to earn enormous trading surpluses within the EU and across the world. Austerity and neoliberalism became the credo of the EU, while democratic rights suffered. Capital won at every major turn, while labour paid the price.

Two events demonstrate the real role of the EU. One was the way that the EU, together with other international institutions such as the IMF used the 2008 economic crisis to harden their neo-liberal policies, attack wages, destroy public services and impose harsh austerity on the Eurozone. The second is the refugee crisis that erupted in 2016. The EU "dealt with refugees and migrants as if they were a matter of security, rather than people displaced through wars, some of which were partly caused by EU countries." As Lapavitsas points out the Mediterranean was turned into a "killing field". EU institutions and rules encouraged and facilitated nation states from helping refugees pushing the blame elsewhere and trapping thousands in camps on the fringes of the economy.

The role of the EU in economic crisis is best demonstrated through the experience of Greece. Lapavitsas argues that the Greek crisis had long term causes, many of which are rooted in the economic configuration of Europe, with Greece subordinated to other economies. But during the crisis, "not a single economic or social decision could be made by the Greek state without the agreement of the Troika. Greek sovereignty drained away dramatically." Ultimately the Greek ruling class made its peace with the EU, and agreed to appalling austerity measures that destroyed the lives of millions of working class Greeks.

Lapavitsas focuses on the role of the radical left party Syriza elected with a mandate to fight austerity, and how they capitulated to the Troika within a very short space of time. The problem, he argues, is that the row about the role of the EU was conducted within the party, not on the streets. In other words, the power to challenge the anti-democratic EU was not in clever arguments, but to counter-pose workers' power to the EU's economic power. The EU, with absolute hostility to left-wing ideas refused to bend an inch. So Syriza gave up.

Lapavitsas develops from this point an argument that the Left cannot implement policies "against austerity and in favour of working people" while trying to stay inside the EMU. The EU will not let that happen and indeed its whole structure is created with the aim of preventing such breaks with its direction of travel. A lesson for a potential Labour government is precisely that it is not possible to do this and the EU must be confronted.

Unfortunately, despite his clarity on the impossibility of reforming the EU, in his final section on a radical left alternative, Lapavitsas turns to a sort of left nationalism. While arguing a case for reform (nationalisation of the banks) etc, he suggests that in Britain Labour, post-Brexit, could offer a radical new approach - breaking from the EU and negotiating trade deals that favour the majority.

This is all very well and good, but I think Lapavitsas' treatment neglects the way that even outside the EU the ruling class will mobilise to protect its interests. The capitalist state needs to be challenged through working class power, otherwise it will use force to prevent fundamental change. But he is right to argue that the breaking up of the EU would be a massive blow against the forces of capital, that the working class can take advantage of. This is not to say that there aren't massive problems - the political scene is dominated by the right-wing, and thus the left has to build major anti-racist movements and ensure that the right to freedom of movement is not abandoned. The project for the left cannot be to "recoup popular and national sovereignty" - this is to fight on the terrain of the right - but a struggle for a socialist world.

Nonetheless, this is an important book. It exposes the reality of the EU in an accessible and fresh style. Because it focuses on Greece it was missing further analysis of the EU's role in Ireland, Portugal and Spain. But the left lacks an understanding of what the EU is and who it serves and Costas Lapavitsas's book is an important contribution to finding clarity.

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