[TIME magazine has detailed what amounts to a bourgeois confession about the class nature of the state. Often wrapped in theatrical “democratic” disguise, the modern capitalist state is always the loyal servant of capitalism, and the enemy of the working class and the majority of society. The reality of bourgeois rule is usually concealed behind populist rhetoric, selective privileges, corruption, xenophobia, and media deceptions which create an ongoing culture of confusion. But times of severe crisis rip this veil and expose the reality, as seen this week in the events in Greece and Italy. — Frontlines ed.]
Regime Change in Europe: Do Greece and Italy Amount to a Bankers’ Coup?
The voice of the people isn’t something the markets seem to want to hear these days. First there was Greece, the cradle of democracy itself, where early this month, the merest mention of a referendum offering its citizens a say in a series of severe austerity measures was enough to send the markets into a tailspin. The ultimate result: the collapse of Prime Minister George Papandreou’s ruling coalition, the rejection of any notion of bringing the proposal before the people, and the installation of a caretaker government under the leadership of Lucas Papademos, a former vice president of the European Central Bank and, until earlier this week, a visiting professor at Harvard.
Then came Italy. As Athens threatened to go under, Rome found itself under pressure not so much for its level of debt — which though high is generally considered within the limits of sustainability — as much as for the erratic behavior of its flamboyant prime minister, Silvio Berlusconi. On Monday, investors seemed to make the collective decision that he could no longer be trusted at the helm of the euro zone’s third largest economy and sent Italy’s cost of borrowing up towards crisis levels. By the end of the week, not only was Berlusconi finished, so was the very idea of holding a vote to replace him. The markets had spoken, and they didn’t like the idea of going to the electorate. “The country needs reforms, not elections,” said Herman Van Rompuy, president of the European Council on a visit to Rome Friday.
Indeed both Papandreou and Berlusconi had been respectively berated and belittled by Angela Merkel of Germany and Nicolas Sarkozy of France. It is almost as if Franco-German displeasure combined with the disapproval of the markets was enough to bring about regime-change. As in Athens, the plan in Rome is to replace the outgoing prime minister with somebody from outside the political class. Mario Monti, a neo-liberal economist and former EU commissioner who seems designed with the idea of calming the markets in mind, is expected to take over from Berlusconi after he resigns Saturday. For many in the two battle-scarred capitals, the fact that Papademos and Monti aren’t directly accountable to the public isn’t a problem. It’s the reason they’re being called in. Continue reading