Dead Economic Dogmas Trump Recovery: The Continuing Crisis in the Eurozone Periphery

Sunday, 15 June 2014 00:00
By CJ Polychroniou, Truthout | News Analysis

In the four bailed-out countries of the European periphery, there is not a trace of solid evidence that the austerity / structural reforms / export-led growth approach insisted upon by the EU and the IMF has paid any solid economic or social dividends, yet it is hailed as a "success."

Four years after the start of the euro crisis, the bailed-out countries of the eurozone (Greece, Ireland, Portugal, and Spain) [1] are still facing serious problems, as the austerity policies imposed on them by the European Union (EU) authorities and the International Monetary Fund (IMF) not only failed to stabilize their economies, but actually made matters worse; in fact, much worse: The debt load increased substantially; national output was seriously undermined; unemployment reached potentially explosive levels; a credit crunch ensued; and emigration levels rose to historic heights. Because of these highly adverse effects, the citizens in the bailed-out countries have grown indignant and mistrustful toward parliamentary democracy itself, euro-skepticism has taken firm roots and a cleavage has reemerged between north and south.