Wednesday, 8 July 2015

The EU is determined to crush Greece and enforce austerity

I intended to write this post prior to the Greek referendum but so much has happened recently I hadn't the chance to do it. The referendum result on Sunday was a stunning 61% for No or OXI. A massive rejection of austerity and an outcome which reverberated around Europe, and gave hope to all those who believe in democracy, and believe that democracy should determine how a society and economy should be run, trumping all other interests.

Before the referendum Caroline Lucas said at a Greece solidarity rally in London:
“Austerity isn’t only socially destructive, as we know – it is economically deluded as well. Greece’s government debt to GDP ratio hasn’t gone down as austerity was imposed, it has increased”
Of course she was right. The Troika's bailout and programme of so-called economic reforms, which entail cuts in pensions and worker's salaries, are intended to make the poorest pay for the economic ills of Greece and protect those who caused the global economic crash which opened the door to austerity in the first place  - the banks. In fact the bailout was never intended to help the Greek people but to protect French and German banks which lent recklessly to a corrupt Greek establishment so that they could buy German weapons and goods.

The Greek people voted OXI (no) in the referendum on the humiliating Eurozone offer

Greeks were threatened openly by the Eurocrats in the run up to the referendum, they were told that the financial taps would be turned off by the ECB and they would be ejected from the Euro. Now, in the aftermath of the referendum, it seems clear that unless Syriza accept humiliating conditions no better than those rejected by the Greek electorate, the threats will be carried out. The EU Goliath is determined to crush the Greek David to ensure that no other Eurozone country has the  temerity to even think that democracy can prevail against the interests of creditors. This is a foolish and short-sighted approach which has the potential to cause real and lasting damage both to the Eurozone and the EU itself.

The Syriza government is between a rock and a hard place but there is only one way out - default and a return to a Greek currency. In fact they should have already set up a parallel currency to the Euro to allow taxes to be paid and the economy to function. Their immediate problem is not solvency but liquidity. This is a very hard road but in the longer term it it offers dignity and hope to the Greek nation. The alternative is decades of debt-slavery in the Eurozone.