Abstract The contemporary cinemas of the European countries directly involved with the current socio-economic crisis, such as Greece and Spain, have become key cultural areas in which urban space and social identity is imagined. Films such as Attenberg (Tsangari, 2010) and Hermosa Juventud/Beautiful Youth (Rosales, 2014) come from different cultural backgrounds and are examples of films that establish a powerful semiotic relationship between aesthetics and politics to give cinematic space a new meaning by tapping into a nexus of ideas about time and subjectivity. The films bear striking similarities in their articulation of the latest economic crisis through images of urban recession and their manifestation of social identity. Commonalities can be detected in stylistic and narrational strategies, thematic motifs, characterization and plot construction, and the use of film technology. This article explores the ways in which these images are related and articulate the current social reality in South European cities narratively, stylistically and formally. Bringing Walter Benjamin’s ‘aestheticizing politics’ of urban space in dialogue with Michel Foucault’s concept of ‘desubjectification’, this article is interested in investigating the links between subjective experience and urban space in South European cities hit by the recession.