Analysis of an economic article from " the guardian"

The title of the article written by Riccardo Bellofiore is "a crisis of capitalism", so the reader comes immediately into contact with the man topic of the text, that will probably concern with nowadays economic problems.  This opinion is also suggested by reading the subheading, in which it is said that financial problems are not home-grown, but they are the result of a global attack on labour.

The subheading is followed by an image showing a clash between police and anti-austerity protesters in Rome, and  it makes us understand  that we are in serious economic problem.

Well, the article starts with a quotation by Karl Marx: "History repeats itself, first as tragedy, then as farce", in order to introduce Italy's situation about a year ago, in the sense of the main problem was having a Prime Minister( Silvio Berlusconi) always distracted by sex and trials and an opposition made of "comedians". So, the use of the word has the function to underline how Italy is seen abroad, that is ridiculous and full of scandals.

Going on reading, Bellofiore states that European crisis is not a home-grown one, and also Italy's crisis is not homemade. In particular, the causes which led to the Italian crisis can be found in European features, such as the single currency not backed by political sovereignty and the presence of no significant European public budget.  What's more, Germany is trying to improve itself instead of helping southern Europe's countries, by introducing stagnation and measures of austerity budgets.

In the following paragraphs the writer first explains that the main problem of  European public debt has been the unwillingness to refinance the most troubled countries( Greece, Ireland and Portugal); after that he says that Italian GDP decreased from 1,3% in 2010 to 1,0% in 2011 and he adds that Italy's economy has been serious and structural failings, which can be dated from the mid-1960s, the years of the "Italian economic boom". Therefore, the institution of the policies of flexibility of labour led to a collapse of labour productivity, which caused itself the increase of regressive taxes and unemployment.

Solutions to the problem are suggested to be found. Securely, a solution doesn't have to be Italy's exit from the euro. This happened in 1992, causing a great devaluation of the economy. Now, two economists, Yanis Varoufakis and Stuart Holland, states that if Eurobonds became also a finance to a wave of investments, Europe( and so Italy) crisis would be stopped, more or less.

Finally, the writer shows again the topic expressed in the subheading and he understands that the real problem of Europe is the missing of internationalism, not money to finance debt.

Economic language within the text

ECB: European Central Bank

Neo - mercantilism: the power of a nation depends on how much it imports and it exports

Keynesianism: it is an economic school founded by John Maynard Keynes, who had focused the attention of economy from production of goods to demand.

Sovereign debt: it is the debt of a public corporation, for example if the expense of the State are higher than profit, the State asks for a loan to somebody and give him a title with interest

GDP: it stands for "gross domestic product" and it is the market value of goods and services in a specific moment

Eurobond: when you lend money to a foreign corporation