[Peace-discuss] Sous les pavés, la plage?

[C. G. Estabrook]

[A topic discussed on tonight's News from Neptune/TV Ed. (ch. 6 at 7pm and soon 
online) but few other places in US media. I was in Latvia several years ago, and 
what's described here is hard to imagine. --CGE]

	Governments across Europe tremble
	as angry people take to the streets
	Ian Traynor, Europe editor
	The Guardian, Saturday 31 January 2009

France paralysed by a wave of strike action, the boulevards of Paris resembling 
a debris-strewn battlefield. The Hungarian currency sinks to its lowest level 
ever against the euro, as the unemployment figure rises. Greek farmers block the 
road into Bulgaria in protest at low prices for their produce. New figures from 
the biggest bank in the Baltic show that the three post-Soviet states there face 
the biggest recessions in Europe.

It's a snapshot of a single day – yesterday – in a Europe sinking into the 
bleakest of times. But while the outlook may be dark in the big wealthy 
democracies of western Europe, it is in the young, poor, vulnerable states of 
central and eastern Europe that the trauma of crash, slump and meltdown looks 
graver.

Exactly 20 years ago, in serial revolutionary rejoicing, they ditched communism 
to put their faith in a capitalism now in crisis and by which they feel 
betrayed. The result has been the biggest protests across the former communist 
bloc since the days of people power.

Europe's time of troubles is gathering depth and scale. Governments are 
trembling. Revolt is in the air.

Athens

Alexandros Grigoropoulos, a 15-year-old middle-class boy going to a party in a 
rough neighbourhood on a December Saturday, was the first fatality of Europe's 
season of strife. Shot dead by a policeman, the boy's killing lit a bonfire of 
unrest in the city unmatched since the 1970s.

There are many wellsprings of the serial protests rolling across Europe. In 
Athens, it was students and young people who suddenly mobilised to turn parts of 
the city into no-go areas. They were sick of the lack of jobs and prospects, the 
failings of the education system and seized with pessimism over their future.

This week it was the farmers' turn, rolling their tractors out to block the 
motorways, main road and border crossings across the Balkans to try to obtain 
better procurement prices for their produce.

Riga

The old Baltic trading city had seen nothing like it since the happy days of 
kicking out the Russians and overthrowing communism two decades ago. More than 
10,000 people converged on the 13th-century cathedral to show the Latvian 
government what they thought of its efforts at containing the economic crisis. 
The peaceful protest morphed into a late-night rampage as a minority headed for 
the parliament, battled with riot police and trashed parts of the old city. The 
following day there were similar scenes in Vilnius, the Lithuanian capital next 
door.

After Iceland, Latvia looks like the most vulnerable country to be hammered by 
the financial and economic crisis. The EU and IMF have already mounted a €7.5bn 
(£6.6bn) rescue plan but the outlook is the worst in Europe.

The biggest bank in the Baltic, Swedbank of Sweden, yesterday predicted a slump 
this year in Latvia of a whopping 10%, more than double the previous 
projections. It added that the economy of Estonia would shrink by 7% and of 
Lithuania by 4.5%.

The Latvian central bank's governor went on national television this week to 
pronounce the economy "clinically dead. We have only three or four minutes to 
resuscitate it".

Paris

Burned-out cars, masked youths, smashed shop windows, and more than a million 
striking workers. The scenes from France are familiar, but not so familiar to 
President Nicolas Sarkozy, confronting the first big wave of industrial unrest 
of his time in the Elysée Palace.

Sarkozy has spent most of his time in office trying to fix the world's problems, 
with less attention devoted to the home front. From Gaza to Georgia, Russia to 
Washington, Sarkozy has been a man in a hurry to mediate in trouble spots and 
grab the credit for peacemaking.

France, meanwhile, is moving into recession and unemployment is going up. The 
latest jobless figures were to have been released yesterday, but were held back, 
apparently for fear of inflaming the protests.

Budapest

A balance of payments crisis last autumn, heavy indebtedness and a disastrous 
budget made Hungary the first European candidate for an international rescue. 
The $26bn (£18bn) IMF-led bail-out shows scant sign of working. Industrial 
output is at its lowest for 16 years, the national currency - the forint - sank 
to a record low against the euro yesterday and the government also announced 
another round of spending cuts yesterday.

So far the streets have been relatively quiet. The Hungarian misery highlights a 
key difference between eastern and western Europe. While the UK, Germany, France 
and others plough hundreds of billions into public spending, tax cuts, bank 
bailouts and guarantees to industry, the east Europeans (plus Iceland and 
Ireland) are broke, ordering budget cuts, tax rises, and pleading for 
international help to shore up their economies.

The austerity and the soaring costs of repaying bank loans and mortgages taken 
out in hard foreign currencies (euro, yen and dollar) are fuelling the misery.

Kiev

The east European upheavals of 1989 hit Ukraine late, maturing into the Orange 
Revolution on the streets of Kiev only five years ago. The fresh start promised 
by President Viktor Yushchenko has, though, dissolved into messy, corrupt, and 
brutal political infighting, with the economy, growing strongly a few years ago, 
going into freefall.

Three weeks of gas wars with Russia this month ended in defeat and will cost 
Ukraine dearly. The national currency, at less than half the value of six months 
ago, is akin to the fate of Iceland's wrecked krona. Ukrainians have been buying 
dollars by the billion. In November the IMF waded in with the first payments in 
a $16bn rescue package.

The vicious power struggles between Yushchenko and the prime minister, Yuliya 
Tymoshenko, are consuming the ruling elite's energy, paralysing government and 
leaving the economy dysfunctional. Russia is doing its best to keep things that way.

Reykjavik

Proud of its status as one of the world's most developed, most productive and 
most equal societies, Iceland is in the throes of what is, by its staid 
standards, a revolution.

Riot police in Reykjavik, the coolest of capitals. Building bonfires in front of 
the world's oldest parliament. The yoghurt flying at the free market men who 
have run the country for decades and brought it to its knees.

An openly gay prime minister takes over today as head of a caretaker government. 
The neocon right has been ditched. The hard left Greens are, at least for the 
moment, the most popular party in the small Arctic state with a population the 
size of Bradford.

The IMF's bailout teams have moved in with $11bn. The national currency, the 
krona, appears to be finished. Iceland is a test case of how one of the most 
successful societies on the globe suddenly failed.

guardian.co.uk © Guardian News and Media Limited 2009

http://www.guardian.co.uk/business/2009/jan/31/global-recession-europe-protests