The European Summer Revolution: Naomi Klein was right in her book "the Shock Doctrine"

The past four years have proved a total vindication of Klein's argument. A crisis of the market was cleverly transformed by free market ideologues into a crisis of public spending. Across Europe, the biggest slump since the 1930s has been used to push through policies straight out of some right-wing wet dream: the slashing of taxes on the rich and major corporations; the selling off of public services; and a bonfire of workers' rights. It is disaster capitalism on speed.

But, this week, the great revolt against the Shock Doctrine began. That is exactly how we must understand the sudden sea change in European politics: not least, the election of Socialist François Hollande in France, and the stunning breakthrough of anti-austerity leftists in the Greek elections.

Portugal after being bailed out by the EU and IMF – is pushing through a far-reaching free market agenda. The first wave of the most radical privatization program in the country's history is under way, including the selling off of energy, water, public transport and the national airline. VAT on electricity and gas has been hiked from 6 per cent to 23 per cent, driving up energy bills; many public sector workers are facing a drop in income of a quarter; and unemployment benefits have been slashed by nearly a fifth. Austerity has plunged the country into a deep recession, and debt-to-GDP ratio is soaring: but that is not the point. Portugal is being remade in the image of neo-liberal dogma.

For the first time since this crisis began, the momentum is with those taking on the Shock Doctrine. It has the potential to change the whole political climate also in the capitalist stronghold Britain. Polls show two-thirds reject the Government's economic program. The Tories and their Lib Dem allies got a kicking in the recent elections. Cameron's approval ratings are in free fall.

An attempt to use the so-called economic crises, which was actually a crisis which started from within  the financial sector, to transform society in the interests of the top is now floundering in Europe and will soon also come tofull  bloom in the US. The prospect of building alliances across Europe is no longer fanciful. It is a moment of transition: what happens next is uncertain - but the old ways are certainly dying.

EU-Digest