Forcing regime change in Greece: the Troika v. Democracy

30.06.2015 - Pressenza London

Forcing regime change in Greece: the Troika v. Democracy
(Image by Kotsolis at English Wikipedia. Licensed under CC BY-SA 3.0 via Wikimedia Commons "2011 Greece Uprising")

We reproduce here some views from Podemos and Nobel Laureate in Economics

In view of the situation in Greece, and following the breakdown in the negotiations by the Eurogroup, Podemos wishes to communicate the following:

1.- Last Monday, the Greek government presented a proposal to the Eurogroup which included important concessions and was unanimously welcomed by the lenders as being reasonable and viable. In the following days, however, the international creditors led by the IMF did not accept the Greek government’s proposal to tax the wealthiest sectors of society, restructure the debt and launch an investment plan to revive the economy. Instead, they demanded to raise VAT on basic services and food and required further cuts on pensions and wages. In their effort to demonstrate that there is no alternative to austerity, the creditors only seem to accept the money of the poor, and insist on imposing the same logic and measures that led the country into a humanitarian disaster. The Greek economy is asphyxiated. To keep strangling it is the precise opposite of what must be done.

2.- Facing such blackmail and extortion, the Greek government has reacted to the ultimatum in an exemplary manner: by calling on the people to decide their own future in a democratic and sovereign way. Unlike the Spanish governments of 2011 and 2012, the Greek government has refused to violate the popular mandate derived from the January election. All the attempts at coercing, intimidating and influencing this vote by unelected powers, especially by the European Central Bank -which is willing to suffocate the Greek financial system to influence the outcome of the referendum-, constitute a flagrant and unacceptable violation of the democratic principle. We say that Europe without democracy is not Europe: all democrats should join their voices in denouncing these intolerable interferences and pressures. Democracy is incompatible with letting unelected powers govern and decide for us. It is democracy what is at stake.

3- With their intransigence, the creditors have demonstrated that they have no interest at all in solving the Greek debt crisis; their aim is rather to subject and overthrow a democratically elected government so as to prove that there is no alternative to the politics of austerity. Their blindness is such that they are willing to put at risk the integrity and the stability of the financial system and the European project itself, exposing them to speculative attacks whose price will ultimately be paid also by the citizens of other countries. We will say it once and again: they will be the ones to blame, they will be responsible for the consequences of this disaster.

4- Syriza did not create the tremendous economic crisis that affects Greece. It was the governments of New Democracy and PASOK, the friends of our PP and PSOE, who falsified data and accounts, surrendered the sovereignty of the country to the Troika, and handed Syriza an economic and social catastrophe that is necessary and urgent to reverse.

5.- Many international actors have already distanced themselves from the dogmatism of the creditors. Hundreds of thousands of people across the world have expressed their solidarity with the Greek people in their defense of the democratic principle. We demand that the Spanish Government and the European institutions respect the sovereignty and dignity of the Greek people, and that they consequently guarantee that the referendum takes place in conditions of freedom and complete normality. The democratic will and the fundamental rights of the Greek people, which have been systematically attacked during the long years of austerity, must be respected.

There are two contradictory fields in Europe: austerity and democracy, the government of the people or the government of the market and its unelected powers. We stand firm on the side of democracy. We stand firm with the Greek people.

“Europe’s Attack On Greek Democracy

“The rising crescendo of bickering and acrimony within Europe might seem to outsiders to be the inevitable result of the bitter endgame playing out between Greece and its creditors. In fact, European leaders are finally beginning to reveal the true nature of the ongoing debt dispute, and the answer is not pleasant: it is about power and democracy much more than money and economics.

“Of course, the economics behind the program that the “troika” (the European Commission, the European Central Bank, and the International Monetary Fund) foisted on Greece five years ago has been abysmal, resulting in a 25% decline in the country’s GDP. I can think of no depression, ever, that has been so deliberate and had such catastrophic consequences: Greece’s rate of youth unemployment, for example, now exceeds 60%.

“It is startling that the troika has refused to accept responsibility for any of this or admit how bad its forecasts and models have been. But what is even more surprising is that Europe’s leaders have not even learned. The troika is still demanding that Greece achieve a primary budget surplus (excluding interest payments) of 3.5% of GDP by 2018.

“Economists around the world have condemned that target as punitive, because aiming for it will inevitably result in a deeper downturn. Indeed, even if Greece’s debt is restructured beyond anything imaginable, the country will remain in depression if voters there commit to the troika’s target in the snap referendum to be held this weekend…

“…We should be clear: almost none of the huge amount of money loaned to Greece has actually gone there. It has gone to pay out private-sector creditors – including German and French banks. Greece has gotten but a pittance, but it has paid a high price to preserve these countries’ banking systems. The IMF and the other “official” creditors do not need the money that is being demanded. Under a business-as-usual scenario, the money received would most likely just be lent out again to Greece…

“…It is hard to advise Greeks how to vote on July 5. Neither alternative – approval or rejection of the troika’s terms – will be easy, and both carry huge risks. A yes vote would mean depression almost without end. Perhaps a depleted country – one that has sold off all of its assets, and whose bright young people have emigrated – might finally get debt forgiveness; perhaps, having shriveled into a middle-income economy, Greece might finally be able to get assistance from the World Bank. All of this might happen in the next decade, or perhaps in the decade after that.

“By contrast, a no vote would at least open the possibility that Greece, with its strong democratic tradition, might grasp its destiny in its own hands. Greeks might gain the opportunity to shape a future that, though perhaps not as prosperous as the past, is far more hopeful than the unconscionable torture of the present.

“I know how I would vote.”

 

 

 

Categories: Economics, Europe
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