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Arabica Robusta

The Collectivist, debt colonialism and the real Alexis Tsipras | openDemocracy - 0 views

  • The first of many clashes between Alexis Tsipras and the status-quo powers concerns not debt restructuring and structural reforms but EU-Russian relations. A statement published on the January 27, 2015, claimed all twenty-eight leaders of the EU agreed that Russia bears responsibility for the rocket attack on Mariupol. The attack killed thirty people.
  • In this context, Alexis Tsipras’ expression of “discontent” at not having been consulted may have been justified. “The aforementioned statement was released without the prescribed procedure to obtain consent by the member states and particularly without ensuring the consent of Greece” the Greek government noted. “It is underlined that Greece does not consent to this statement”. Whether the oversight was intentional or a mix-up resulting from the transition of power in Greece remains unclear. That the new government of Greece will exert pressure in order to realign EU policies towards Russia should not however be in doubt.
  • What is more, EU pressure contributed to the failure in the privatisation process of one of Greece’s state-owned energy companies to a Russian-backed consortium. Subsequent criticism to the effect that Greece is not privatising assets at sufficient speed have sounded hollow as a result. EU sanctions on Russia are thus directly affecting some of the few dynamic segments of the Greek economy and have contributed, albeit indirectly, to SYRIZA’s victory in these elections.
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  • All things considered, Alexis Tsipras is wrong on Ukraine. The fact that EU policies have had such a destabilising effect on the country, and that even today the EU is not offering anything like adequate aid, are not sufficient to justify Russia’s annexation of the Crimea and its support for separatists in the East.
  • Whatever one’s take on dependency theory, it should be self-evident that no democratic country can support running primary surpluses of up to 5% of GDP over decades, as called for by the Memorandum, when over 25% of its population is unemployed, poverty is endemic and the productive base of the country has been ravaged. Given similarities to economic conditions during the Great Depression, the EU should consider the victory of a democratic party like SYRIZA a relief. Still, it remains a source of surprise that the EU did not move to link debt reduction to GDP growth before April of 2014, in other words before the Euro elections, when such a move might more easily have been coupled with accelerating the pace of the structural reforms that are needed to strengthen Greece’s private and public sectors. 
  • It is already exposing Greece to criticism. But can Greece’s economy – in particular its banking sector – survive such brinkmanship on all fronts for even a short period of time?
Arabica Robusta

After Greece: Can the Left Change Europe? » CounterPunch: Tells the Facts, Na... - 0 views

  • The public consciousness is, at last, aware of the issues of financial regulation, wealth distribution and the means of production. But questions relating to religion regularly push these into the background (1).
  • Nikos Filis, editor of Avgi, a newspaper with, as main shareholder, the radical left coalition Syriza (2), came to a different conclusion: “The attack may orientate Europe’s future: either towards Le Pen and the far right, or towards a more reasoned approach to the problem. Because security needs cannot be met by the police alone.”
  • “If Syriza had been less intransigent on standing for the rights of immigrants, we would already have 50% of the votes. But this choice is one of the few points on which we all agree.”
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  • They scarcely existed five years ago but now they look like credible candidates to exercise power; and they may be able to relegate their countries’ socialist parties — which share responsibility for the general financial disaster since 2008 — to a supporting role, just as Britain’s Labour Party supplanted the Liberal Party, and France’s Socialist Party supplanted the Radical Party (3). Those changes were permanent.
  • In Athens, that nowhere is all too clear. But austerity’s cruelty, with social and health consequences extending to hunger, cold and increases in infectious diseases and suicides, does not necessarily mean a change of policy (4). Austerity’s architects are well paid to have nerves of steel.
  • Syriza has calculated precisely that free electricity, public transport, emergency food for the poorest and vaccines for children could be financed through more aggressive anti-corruption and anti-fraud measures. The outgoing conservative government admitted that these deprived the public coffers of at least €10bn a year.
  • These measures are not up for negotiation with other parties or the country’s creditors, Milios insists: “They are questions of national sovereignty; they won’t add anything to our deficit. We are therefore intending to implement this policy whatever the outcome of debt renegotiations.”
  • In these circumstances, the European conference on debt that Tsipras called for two years ago in this publication (6) could become a realistic prospect. Ireland’s finance minister backs the idea, and it has a historical precedent in the 1953 conference that cancelled Germany’s war debts, including what it owed to Greece. Syriza hopes the conference it is calling for will provide “the alternative solution which will bury austerity for good.”
  • Merkel has threatened Greece with expulsion from the euro if its government breaks the budgetary or financial disciplines to which Germany is so attached. The Greeks want both to loosen austerity policies and to remain in the single currency. Those wishes are shared by Syriza (8), because a small, exhausted country cannot fight on all fronts at once. “We’ve been the troika’s guinea pigs. We don’t want to become the guinea pigs for a euro exit,” says Valia Kaimaki, a journalist with links to Syriza. “Let a bigger country, such as Spain or France, go first.”
  • Moulopoulos believes that “without European support, it will not be possible to do anything at all.” That is why Syriza accords importance to support from forces beyond the radical left and the Greens, in particular the Socialists. Yet the Greeks have had experience of the surrenders made by social democracy since Andreas Papandreou forced his party to make a major shift towards neoliberalism 30 years ago. “If he had stayed on the left, there would have been no Syriza,” says Moulopoulos. “In Germany too, when Oskar Lafontaine resigned from the government [in 1999], he expressed regret that social democracy had become incapable of even the most insignificant reforms. Globalisation and neoliberalism with a human face completely destroyed it.”
  • Electoral victory for Syriza, or for Podemos in Spain, could demonstrate, contrary to what Hollande or Matteo Renzi in Italy say, the viability of a European politics that rejected austerity. That would challenge more than the German right.
  • Now the threat is much greater. “If we don’t change Europe, the far right will do it for us,” Tsipras has warned. It has become even more urgent to be bold.
  • The task for the left in Greece and Spain, on which much depends, is hard enough without adding onto their shoulders the heavy responsibility of defending Europe’s democratic destiny, and averting a “clash of civilisations”. But that is what is at stake.
Arabica Robusta

Pressure grows for independent audit of Greek debt - 0 views

  • An audit commission, composed of public auditors, economists, lawyers and other specialists, as well as representatives of civil society and organised labour, would look into why public debt was incurred, the terms under which it was contracted, what the borrowed money was spent on and seek to establish who was responsible for problematic debt agreements. "Such an audit would throw up some interesting questions regarding the legality - banks may have been lending in contravention of public debt rules of European debts," Jubilee Debt Campaign director Nick Dearden said.
  • Odious debt a legal theory that posits that the national debt incurred by a despotic regime for purposes that do not serve the best interests of the nation do not have to be paid back.
  • Any substantial repudiation of this debt would punch massive holes in the balance sheets of the banks in the core of the Eurozone that performed much of the lending, mainly German and French institutions. Similar effects would be felt by UK banks in the case of Irish lending.
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  • The Greek labour minister, Louka Katseli, is thought to be sympathetic to the idea and support is growing across the political spectrum, say drafters of the call for an audit commission, with MPs expected to raise the proposal in parliament in the coming days.
Arabica Robusta

Greece's Political Chimera - NYTimes.com - 0 views

  • The showdown over the bailout is extremely dangerous, and obscures many serious issues that need to be dealt with in Greece and in the European Union as a whole.
  • The confrontation with Greece’s creditors can be seen as a clash between populism and dogma: on one side, a government that gained power by exploiting anger and despair; on the other, the creditor countries and organizations that insist on austerity even in the face of evidence that it is destroying a country and its people.
Arabica Robusta

Now can Podemos win in Spain? - Le Monde diplomatique - English edition - 0 views

  • Hundreds of thousands of demonstrators — whom the world press refer to as los indignados — gathered in the square of Puerta del Sol in Madrid on 15 May 2011, protesting against the banks’ stranglehold on the economy and a democracy they felt no longer represented them. They outlawed flags, insignia and speeches on behalf of organisations and parties, and soon had a slogan: “United, the people do not need parties.”
  • Podemos’s creation stemmed from the realisation that “15-M [15 May] was locked in a social movement-based conception of politics,” said sociologist Jorge Lago, a member of Podemos’s citizens’ council, part of its wider leadership structure. “The idea that a progressive build-up of strength among the demonstrators would inevitably produce political results proved to be false.” Associations to fight tenant evictions and resistance networks against health sector cuts were established, but the movement ran out of steam and fell apart.
  • But what should happen when a government that social movements regard as over-timid comes under fire from conservatives? Should they play into their enemy’s hands by joining the criticism, or keep silent, betraying their cause? There is no easy answer to this.
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  • Half of Spain’s unemployed no longer receive benefits, while 33 of the 35 biggest companies avoid tax through subsidiaries in tax havens (6). Half a million children have been plunged into poverty since 2009, but the wealth of Spain’s super-rich has increased by 67% since Rajoy came to power (7). To avoid the wrath of a fractious population, last December’s “citizen security” law outlawed everything that made the 2011 mobilisation possible, including meetings in public places and distributing leaflets.
  • Spain’s situation may be risky. It makes the far right, Iglesias has pointed out, “as happy as a fish in water” (8). Yet the Spanish left has an advantage over its French counterpart: a large fringe element of the nationalist far right is formally integrated into the PP, which makes it difficult for them to push an anti-system platform, unlike France’s Front National, which has only ever run local councils.
  • “To be specific,” Lago said, “we don’t talk about capitalism. We defend the idea of economic democracy.” Nor is the left-right dichotomy discussed: “The divide,” Iglesias has said, “now separates those, like us, who defend democracy ... and those who are on the side of the elites, the banks, the markets. There are people at the bottom and people at the top ... an elite and the majority.”
  • People looked at them like they were from another planet, and my students went home discouraged ... That’s what the enemy is expecting us to do: use words no one understands, remain a minority, fall back on our traditional symbols. And they know that as long as we do that, we pose no threat to them.”
  • Shaped by Gramscian thought, Podemos leaders believe that the political struggle should not be limited to overthrowing existing social and economic structures, but should also be against the hegemony that legitimises the domination of the powerful in the eyes of those they dominate. In this cultural area, the enemy imposes its codes, language and narrative. And one tool stands out for its ability to shape “common sense” — television.
  • “There’s nothing extremist about Podemos’s programme” (10), Iglesias has said: a constituent assembly on coming to power, tax reforms, debt restructuring, opposition to raising the retirement age to 67, the introduction of a 35-hour week (40 at present), a referendum on the monarchy, a kick-start for industry, the recovery of powers ceded to Brussels, self-determination for Spanish regions. Foreseeing an alliance with similar movements in southern Europe (Syriza in Greece, which has come to power in the 25 January election), Podemos’s plans do threaten financial powers, what Iglesias calls “German Europe” and “the caste”.
  • And those powers are already baring their teeth. A piece by journalist Salvador Sostres in El Mundo in December compared Iglesias to the former Romanian leader Nicolae Ceauşescu, and claimed he had only one idea: “to make the blood of the poorest flow, to the very last drop.” A PP politician was even more direct:  “Someone should put a bullet in the back of his head.”
Arabica Robusta

Analyzing the failures of Syriza « Systemic Disorder - 0 views

  • If we are serious about analyzing Syriza’s spectacular failure — including those who expected this outcome in advance — digging through the rubble is unavoidable.
  • The international Left saw hope in Syriza, and Syriza economists worked on solutions. There was much political seriousness as Syriza was seen as the last hope; that fascism might well be next given the growing menace of Golden Dawn focused minds.
  • no success in a single European country will be sustainable unless it is followed by similar successes in other countries.“Yiannis Tolios, an economist, also elected to the [Syriza] central committee, articulated the problem starkly, but with a different stress: ‘If having socialism in a single country is considered hard, having socialism in all countries at the same time is nearly impossible.’ Greece needed to forge ahead, whether the rest were ready or not, but it was perilous path.” [page 59]
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  • Greeks responded by heavily voting “no” to further austerity. The Syriza government then did a remarkable about-face. Eight days later, Prime Minister Tsipras signed an agreement even more unfavorable that what had been demanded by the troika. More than half of Syriza’s central committee signed an opposition letter and most Syriza members were furious. This was ignored.
  • You cannot build a left when you trash the very basis of our beliefs. It came from a mix of blatant opportunism, genuine confusion, psychological distress, and postmodernist sophistry.
  • That this is a “you are there” document from a personalized standpoint does not at all mean that The Syriza Wave is anything other than a serious political analysis. The work could have been strengthened in two ways: one, a deeper discussion of the economic issues, including the ramifications of staying in (or exiting) the eurozone, and, two, a discussion of how virtually every euro of the troika loans are going to creditors and banks rather than to the Greek people, a topic barely mentioned in passing only once. These are topics that would have added to the narrative.
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