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Friday, 18 May 2012

Listen to the cry of Athens



Instead of treating Greek officials as outcasts and their constituents like the plague, European leaders, and particularly Germans, would be better off listening. Because, in attempting to prioritise the needs of the economy over those of democracy, they are undermining the Union’s foundations.
Barbara Spinelli 17 May 2012
LA REPUBBLICA ROME


We get used to cliches so quickly that we no longer see their more perverse consequences, and so we repeat them mechanically, as if they were irrefutable truths, while the purpose of them is to push us back into line. The danger of following the same path as Greece, for example: it has now become the slogan that has turned us all into bewildered spectators observing some rite of penance, where a scapegoat is sacrificed for the collective good. Those who are different or deformed have no place in our city. And if the new elections that have just been called do not provide the majority needed by their partners, Greece’s destiny will be mapped out for it.
How many times have we heard leaders whisper darkly: "You don’t want to suffer the same fate as Greece, do you?" The exit from the euro area was not foreseen by treaties but it can easily be surreptitiously achieved. In truth, Athens has already fallen into the twilight zone of non-Europe, it is already the bogeyman invoked to frighten children.

The real root of the problem ignored

Perhaps Greek secession is inevitable, but at least shed a little light on the real reasons why: if it's inevitable, it is not because rescue is too expensive, but because democracy has come into conflict with strategies that were supposed save the country. In the May 6 elections, the majority of voters rejected the austerity pill that the country unsuccessfully swallowed two years ago and which, on the contrary, triggered the recession in Greece which has proved disastrous for democracy. A recession reminiscent of Weimar Germany, with military coups on the horizon. Forced to go back to the polls in the absence of agreement between the parties, voters will reaffirm their rejection and give more power to the radical left, the Syriza party of Alexis Tsipras. And again, clichés proliferate: Syriza is a negative opposition force, against austerity and against the Union, while Tsipras is portrayed as the ultimate anti-European.
The reality is different. Tsipras does not want to leave the euro nor the EU. He wants another Europe, just like François Hollande. He knows that 80% of Greeks want to keep the single currency, but not under these terms, not with these national and European politicians who have impoverished them, while ignoring the real roots of evil: the corruption of the ruling parties, the state and the public sector who are slaves to politics, the wealthy who have been spared [by austerity]. Tsipras is the answer to these ills, yet nobody wants to get burnt by talking to him. Not even Hollande, who refused to meet the leader of Syriza when he rushed to Paris after the elections.
And have you heard the European left, who claim to have solidarity in the blood, supporting George Papandreou when he said he had Europeanized the Greek crisis in order to find a solution? Who took his words seriously when he addressed the German Greens in December, after his resignation as Prime Minister? The idea he had outlined today remains the best solution to overcome the crisis: "For the member states, austerity. For Europe, policies to spark growth."
Papandreou's words went unheeded, as if it were shameful to listen to a Greek these days. As if there were no thought to the astonishingly off-hand manner with which the country, the birthplace of democracy, was transformed into a pariah state as its merciless degeneration was watched from the sidelines: oligarchy, the dominance of the market resulting in plutocracy, the freedom with which the law and justice are disregarded.

Athens' expulsion, Europe's failing

If we had just a little memory, we would better understand the Greek soul. We would understand the writer Nikos Demou when he voices aphorisms on the misfortune of being Greek: "The Greek people feel the terrible weight of their own legacy. They grabbed the superhuman level of perfection in terms of their words and forms of old. It overwhelms us: we are more proud of our ancestors (without realising it), than we are concerned about ourselves." Those who mention the Christian roots of Europe, forget the Greek roots and the enthusiasm with which Athens, once it turned its back on military dictatorship in 1974, was welcomed into Europe as a symbolically important country.
What our leaders do not say is that the expulsion of Athens will not only be the result of its own failure. It will be the failure of Europe, a nasty story of voluntary inaction. We have not managed to balance economic needs with those of democracy. We have not been able, even by bringing together our resources and intelligence, to overcome the first lesson from the old nation states. Europe did not do as did former Treasury Secretary Alexander Hamilton just after the American Revolution, when he decreed that the central government would assume the debts of each state, thus uniting them in a strong federation. Europe did not make Greece a European affair. It did not see the link between crises of the economy, democracy, nation and politics. For years, it has been courting a corrupt Greek establishment and now here it is stunned to find its people do not accept responsibility for this disaster.
This distance between Union and democracy, between Us and Them, will have painful consequences. With their death, a little of us would die too, but the decline lacks the self-knowledge that Athens has taught us. It is not the Greek death that Ajax the Great spoke of in the Iliad* : "A black fog envelops us all, men and horses. Father Zeus, deliver us from this darkness, the sons of the Achaea: clear the heavens so that our eyes can see and if, in your rage, you want us to lose so be it, but at least give us light so that we can see! "
*Iliade (XVII 645- 647)

Wednesday, 16 May 2012

British citizen furious with what is happening in Greece




The euro exit is a bluff




NICOLAS VADOT
LA STAMPA MAY 15th

As speculation rages about a Greek exit from the eurozone, we must grasp that the country cannot survive without the single 
currency and that Europe cannot afford to let it leave. That's why everyone should put their cards openly on the table.


Stefano Lepri
The voters' verdict is already in across several countries and regions: the cure based strictly on austerity within the eurozone has failed. What needs to be done now is to take that reality on board and to start negotiations that promise to be difficult and that may lead to awkward compromises.
Greece, though, must be ready for anything. And it must distinguish between the reality and the threats and blackmail that are flying 
about at the moment.

Return of the drachma
Point one. Greece cannot survive on its own. Without the aid from Europe and the International Monetary Fund (IMF), it will very 
soon run out of money to pay its civil servants' salaries and to import what it needs for survival, starting with food and oil.
Point two. After the restructuring imposed on private creditors, almost half of Greece's debt is today held by Europe and the I
nternational Monetary Fund. If Greece doesn't pay, therefore, it will be mainly the taxpayers in the eurozone – i.e. all of us, at a 
thousand euros each, according to a rough estimate – who will be out of pocket.

Point three. The return to the drachma would be advantageous only in the imagination of poorly informed economists, mostly 
Americans. It now transpires that the George Papandreou government had commissioned a study that showed that even the 
two sectors that bring Greece its most significant revenues, tourism and shipping, would not be much better off with a devalued 
currency.

Point four. The real unknown is what collateral damage – apart from the failure to pay its debt – a possible bankruptcy of Greece 
would cause other countries in the eurozone. First of all, the spread with German treasury bonds could only go up. Certainly, the consequences would not have the same weight for everyone, falling harder on small countries, starting with Portugal, then Spain and Italy, and lighter on Germany.

Solidarity or rock-bottom?
There is no definite answer in the minds of the ministers of the Eurogroup that met in Brussels on May 14 to the question: should 
more support be held out to Greece, or should it be left to hit rock-bottom? At first glance, at least for Italy, solidarity seems cheaper than refusing to help; peering into the future, a Greece that has not been stabilised would become a ball and chain.
Since two political crises are intertwining here, one that affects the decision-making mechanisms of Europe and the other the Greek 
political parties, it's time to think about the alternatives that need weighing up, and to deploy a political rationale in doing so.
In Athens, a political system is collapsing. One must ask if the defeat of the two parties that previously dominated – New Democracy and the Socialists – is due to the tight deadlines demanded by Europe to clean up Greece's debt or to the unfair and inefficient distribution of sacrifices, which continues to protect the clientele and interests of the powerful.

Digging deep
Europe had called for shorter deadlines than the IMF was demanding precisely because Europe was wary of the politicians who were in power in Athens. And now Europe is wary of the Greek voters as well. Their votes have shifted to politicians from emerging movements, who are telling them a lie – that Greece can blackmail other countries more effectively by threatening to drag them into the abyss too if they fail to open their wallets yet again. To confront these illusions, it is up to Germany and other countries demanding austerity to show that blackmail leads nowhere, because they themselves will not fall into the abyss. They need rather to come clean and set out exactly what acts of solidarity they would be willing to perform for other countries weakened by the crisis in the event that Athens does form a government bent on a tug-of-war. Otherwise, telling the Greeks to "sink or swim" would prove to be a bluff – one that the markets are already tending to believe.




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