Paris/Brussels, 25/01/2016 (Agence Europe) - The question of an alternative to the European Union and the eurozone dominated debate between radical left political representatives and intellectuals in Paris on 23 and 24 January at an internationalist summit for a 'plan B' in Europe. During the discussions, a differentiated approach emerged depending on a country's size.
For nearly two days, politicians and activists from the radical left, along with heterodox intellectuals and economists, discussed subjects as wide-ranging as collective restructuring of sovereign debt, the introduction of audits and public debt moratoriums and strategies for winning back 'economic sovereignty' to return the economy to the democratic fold.
It was, however, the drawing up of an alternative monetary plan in Europe that focused the debate. The Greek experience and the ratification frog-marched through by the Syriza government of the third Greek bailout in return for the introduction of a raft of measures poles apart from the Thessalonica programme of the coalition in power in Greece (see EUROPE 11358) was traumatic for the radical left in Europe, who describe it as flying in the face of democratic fundamentals and a “coup d'État” by “neoliberal Europe.”
The 13 July agreement on the third Greek bailout therefore bears out the section of the radical left which believes it is not possible to change Europe “from the inside,” as Maxime Benatouil of the European 'Transform' network, a political foundation of the European Left Party, told this newsletter. From this starting point, some radical left forces have decided to jointly draw up a credible 'plan B' in case of failure of the current 'plan A,' the 'Good Euro Plan' that is officially being promoted by the European Left Party. This 'plan A' is reportedly structured around a reformed European Central Bank subject to democratic control and where there would be solidarity among the member states.
“There is a division within all radical left parties on the question of the euro. The majority view says that the strategy of transformation 'from within' must continue despite the failure in Greece.” This approach seems to be supported by former Greek finance minister and co-initiator of the Good Euro Plan, Yanis Varoufakis, with the future launch of the “Democracy in Europe Movement 2025” - DIEM 2025, which aims to reform and democratise the European institutions. “The supporters of 'plan B' view this strategy as a pipedream,” commended Benatouil.
During the discussions a consensus emerged in favour of a differentiated approach depending on the type of country, viz. small 'peripheral' nations like Greece or 'big' countries like France and Germany. For the small peripheral countries, assuming a radical left party came to power, some said that a negotiated exit from the European Union would be the only possible path, along with the creation of an alterative currency, the introduction of capital controls and nationalisation of the banks. For big countries, the balance of forces is more favourable and the strategy could be to start by transforming the European institutions from within. If this ended in failure, then a negotiated exit should be the preferred option.
Some, however, pointed out the huge problems underlying such an exit. Fabio De Masi (GUE/NGL, Germany), for example, expressed concern about the exchange rate of any alternative currency, which would inevitably come under strong pressure on the international markets. Talking about the obstacles in the system, a speaker from the audience pointed out the exorbitant globalisation restraints that would be placed on countries making such a move.
The forum for a plan B didn't get the support of the European Left Party and was only backed by some members of the GUE/NGL at the European Parliament. “The space we're building is a space that people join as individuals (…). It won't be joined by entire parties, but sometimes there will be figureheads who join,” explained to this newsletter Jean-Luc Mélenchon (GUE/NGL, France), project co-initiator, adding that access to the forum would be as open as possible because this was the best way of building the forum.
The big figure absent from the forum was Varoufakis. An observer commended that the movement he has just announced would not be in line with the forum for a plan B.
The next meeting of the forum will be in Madrid on 20 February, followed by a meeting in Berlin in June (Original version in French by Pascal Hansens)