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Greece, the E.U. and the Discipline of Capital

Just seen this post from Principia Dialectica discussing  Financial Times coverage of the Greek economy. The FT are reporting that the Greek government have come under criticism by the E.U. for falsifying the extent of their debt ridden economy. As the shocks from the financial crisis continue to spread Greece is the latest state under pressure. Given the inter-dependent nature of the E.U. however, the effects of any financial crash will be more widespread.  Indeed, in a bid to buffer the Euro-zone, Greece could be kicked out within 3-4 years if this debt can’t be secured.

The costs of this will no doubt be paid for by Greek citizens themselves, indeed duties on cigarettes and alcohol have already been raised whilst the health services have been highlighted by E.U. inspectors as being highly inefficient. Further spending cuts will be needed to secure their debt and hence the value of the Euro. The welfare of Greek citizens will no doubt suffer. It’s highly unlikely, however, that the military, border and police forces will suffer from a lack of spending. Given the precarity of Greek ‘national security’ and Greece’s pivotal role as enforcer of the Schengen zone and site of struggle with a huge, popular autonomous social movement these institutions appear unlikely to be forsaken.

Could Greece become the European Mexico or Argentina? How will social movements in Greece respond to this?