European and global debt crises

1. European and global debt crises

2. Key points

3. Key points • Reckless lending caused by liberalised financial system

4. Key points • Reckless lending caused by liberalised financial system • Bailout and austerity destroys lives and maintains the crisis

5. Key points • Reckless lending a root cause of crisis, caused by liberalised financial system • Bailout and austerity destroys lives and maintains the crisis • European campaigners for economic justice have to be working on the European debt crisis

6. Key points • Reckless lending caused by liberalised financial system

7. EU reckless lending Current account balance

8. Global reckless lending

9. Global reckless lending Net lending to countries in the South (does not include illicit flows)

10. History of crises Government defaults

11. Key points • Reckless lending caused by liberalised financial system • Bailout and austerity destroys lives and maintains the crisis

12. Bailouts and austerity By start 2013, EU and IMF had lent Greece $290 billion – now accounts for 65% of foreign owed debt

13. Bailouts and austerity External debt in the global South

14. Human impact In Greece, 11 per cent of population now live in extreme poverty; cannot afford a decent diet and enough heating In Spain, Red Cross helped feed 1 million malnourished people in 2012

15. Impacts: In 1980s Latin America Population living in poverty increased from 144 million to 211 million Africa Population living in extreme poverty increased from 205 million to 330 million

16. Key points • Reckless lending a root cause of crisis, caused by liberalised financial system • Bailout and austerity destroys lives and maintains the crisis • European campaigners for economic justice have to be working on the European debt crisis

17. We have to work on Europe • European campaigners for economic justice have to be working on the European debt crisis: • The impacts are huge • We are irrelevant to our fellow citizens if we don’t • The crisis, and response to it, are a central part of the financial system which has dominated the world for 40 years

18. Final point Capital now rushing to the global South again, because of crisis in the North • Some countries using capital controls, eg, Brazil • Some taking opportunity to borrow, eg, Rwanda