SYRIZA leader's second letter to Barroso et al.

 Background 1, 2, 3 (see discussions also)
 

Letter of the president of the Parliamentary Team of SYRIZA – EKM to EU Commission President Jose Barroso, the President of the European Council H. Van Rompuy, and the President of the European Parliament Μartin Sultz; attn the President of the ECB Mario Draghi and Eurogroup President Jean Claude Juncker


Athens Thursday May 10, 2012

Dear Mr. President

I am sending you this letter after returning the exploratory mandate with which the President of the Hellenic Republic entrusted me, so that I could determine the possibility of the creation of a government that would enjoy the parliament’s confidence, according to our Constitution. This letter is a continuation of the previous one I had sent you on February 21.

The vote of the the Greek people on Sunday May 6th, delegitimizes politically the Memorandum of Understanding / Memorandum of Economic and Financial Policy which was signed by the previous government under Mr. Papademos and the leaders of the two parties which had guaranteed the parliamentary majority of that government. Both these parties recorded a loss if about 3,5 million votes, receiving a combined 33,5% of total votes.

We would ask you to note that, before this, the Memorandum of Understanding / MEFP had been already delegitimized as regards to its economic efficiency.

But it isn’t just that the MoU/MEFP failed in achieving its own stated goals. It is also that it has failed to confront the structural imbalances of the Greek economy. SYRIZA has been pointing out all these past years the endogenous weaknesses of the economy. All governments, in close collaboration with the EU, ignored our proposals for concrete reforms.

Please note also, that because of the policies of the MoU/MEFP, Greece is the only European country ever in peacetime to be suffering in 2012, its fifth consecutive year of deep recession. Furthermore, the bond exchange program (PSI) has failed to secure in a reliable way the long-term viability of the public debt, which is increasing as a percentage of Greek GDP. Austerity cannot in any way be a therapy during a recession. The immediate, socially just, reversal of the declining trend of our economy is therefore imperative.

We must urgently secure economic and social stability in our country. For this reason, we have a duty to undertake every possible political initiative in order to reverse austerity and recession. Because, beyond the lack of democratic legitimization, a continued implementation of the program of internal devaluation leads the economy towards a catastrophe, without producing the prerequisites for recovery. Internal devaluation tends to lead to a humanitarian crisis.

We therefore have a duty to re-examine the whole framework of existing strategy, given that it not only threatens social cohesion and stability in Greece, but also is a source of instability for the EU itself and for the Eurozone.

The common future of European peoples is under the threat of these disastrous choices. It is our deep conviction that the problem of this crisis is European and that therefore it is at a European level that a solution must be found…



Respectfully

Alexis Tsipras

President of the SYRIZA Parliamentary Group

Vice-chairman of the Party of the European Left

The anality of evil

Dark lords of the IMF over Dublin, one of their other lairs

EU Commission President Barroso said: 

"Greece's future passes through restoring both financial stability and growth potential. The support provided by the Commission's Task Force is a key instrument to support growth and jobs in Greece. The solidarity shown by many Member States, the Commission, and other international institutions is a very encouraging signal for this country. Let's build a future for Greece together".

The Daily Mail responded:

Is Greece becoming a third world country? HIV, Malaria and TB rates soar as health services are slashed by savage cuts:
Prostitution and heroin addiction on rise as hospital budgets cut by 40%. Malaria levels reaching near endemic levels in some areas. 'The entire health system is deteriorating'

The Guardian chimed in:

Greece is on the breadline: newborn testing is under threat... a health worker warns that children will die from disorders that are easily detected and treated

"Whatever are you talking about, these sub-humans deserve more austerity" responded the Commission and the Greek government eagerly assented:

...in preparation for the new cuts the government was reviewing public spending programmes, focusing on savings in social transfers, defense and the restructuring of central and local administration.
There would be job cuts in the public sector according to a redundancy and recruitment rule of 1 entry for 5 exits. Athens is to further cut pharmaceutical spending and operational spending of hospitals as well as welfare cash benefits.
“The continuation of the very comprehensive international financial assistance can only be expected if policy implementation improves,” the Commission report said...

"Defending the equitable state, the welfare state, is the top priority, a sine qua non condition for our survival as a civilized people" countered Nikos Xydakis.

"The European social model has already gone" said Mario Draghi dismissively."Yes" agreed the local bankers happily, busy chewing the pound of flesh they stole from the hospitals and the schools.

"While our policies may be unpopular, profligate states are finally starting to reform" added Angela, the demented ordoliberal, pointing at the breadlines and the homeless in Greece with some satisfaction... We have these sort of people here at home too, we do keep them to their station...

Cross posted at the European Tribune

A warning to austerian eurocrats

SYRIZA, the Greek Coalition of the Radical Left, has notified through an open letter signed by its president Alexis Tsipras and addressed to heads of Eurogroup member-states, the head of the European Commission Jose Barroso, the President of the European Council Herman Van Rompuy, and Martin Schulz head of the European Parliament, that it does not consider the signature of the politically illegitimate government of Greece binding for future Greek governments. Although SYRIZA is at 10-12% at the polls currently, there is a dynamic testified not only internally but by a recent character-assassination piece in Bild and a less rabid but if anything more vitriolic and selective in its narrative piece in Der Spiegel. SYRIZA is now the first Greek party to publicly commit itself to repudiating the terms of the latest loan agreement, as stated in the letter, translated below. Should SYRIZA continue rising in the polls expect the regime to postpone elections:

Hon. Sirs / Mms
I am sending this letter to alert you to a matter of democratic order of urgent importance for Greece. This has to do with the commitments undertaken over the past two days by the Papademos government, headed by Mr. Loukas Papademos. Allow me to remind you that this is an unelected government, which does not enjoy popular support and has consistently and consciously acted against the will of the people of Greece. This government does not have the democratic legitimacy to bind this country and its people for the coming years, the coming generations. This legitimization deficit is in conflict with the rich democratic tradition of your own country. If this continues therefore, it will become a bad precedent for Greece and Europe as a whole, which above all, have a common inheritance of political and democratic traditions, which must be respected. However great the seriousness of the current circumstances might be - over which there is room for a divergence of opinion - they should not in any way cancel democracy.
The lack of democratic legitimacy of the Papademos government arises from the following facts:

1. The two political parties, which support the government and participate in it do not have a popular mandate to bind Greece to treaties and agreements of this nature. Their representatives were elected in the last national elections on October 2009, based on political programmes at complete odds with the policies that were followed by the previous Papandreou government as well as those being negotiated today with the EU, the troika and the IIF, by the current government. The two parties which constitute the current government have a recorded history of plundering public resources and are responsible for the current economic situation
2. The people of Greece have been systematically misinformed and deceived about the intensity and the duration of the austerity measures, ever since their first implementation in 2010. Consequently they have withdrawn their confidence in the Greek political establishment. Furthermore, the widely admitted - inside our country and abroad - obvious failure of these measures to successfully face the fiscal problems they were supposed to solve these past two years and the five-year period of  continuously deepening recession, has further legitimated the demand for a change in policy, so as to restore a socially just growth and therefore the prospect of a fiscal rationalization.
3. More specifically: the unelected Papademos government provides but a minimum of information, sometimes even deceitful, regarding the agreements it is secretly negotiating. It has not initiated nor has it allowed to initiate any public, informational discussion about the extremely serious long term commitments that follow. Greek Democracy has thus been deprived of the constitutionally protected right of a detailed evaluation of the consequences of the signed agreement. The so-called "second rescue" was voted through an emergency ultra fast-track procedure, in the time-frame of one parliamentary session on a Sunday. The main object of this session was the demand by the government of a carte-blanche authorization on almost blank documents, which are supposed to bind the country for years to come
4. To the degree that there has been no information on these agreements, their content seems to be such as to commit the Greek people for generations to come. For such commitments any government should at least demand a clear and renewed mandate.
5. To the degree that there has been no information on the government's movements, the will of the Greek people as expressed in a multitude and a variety of ways, is almost unanimous in opposition to them. Specifically, during the last two years the people of Greece, throughout the country are expressing their opposition to government policies through, among other means, repeated general strikes and demonstrations, occupations, letter writing, electronic messages and other forms of personal communication with members of Parliament. The Greek government, not only chose to ignore the voice of its people, but tried indeed to stifle it, at times even violently, so as to continue in a antidemocratic way, the policies that have been proven disastrous for the Greek economy and society.

For all of the above reasons, I  am notifying you that the Greek people, as soon as they restore their right to democratically express their will and regain control of their democratic institutions, will in all likelihood reserve recognition or compliance with these agreements that the current government is planning to assent to. Specifically the Greek people will not accept any loss of sovereignty, foreign involvement in internal matters of Greece or large-scale sale of public companies, land and other assets that the current government is preparing to accept...

Alexis Tsipras
President of the SYRIZA parliamentary team

Declaration for the Defense of Society and Democracy

I reproduce here the text of the Declaration for the Defense of Society and Democracy, organized by a group of progressive Greek intellectuals as an instrument to raise awareness about the predicament Greece is in, but also the dangers that this implies for Europe as a whole... In order to sign this document send an e-mail with your name and organization (optional) to koindim@gmail.com (signatories thus far)

The following declaration (original here) is the product of an initiative undertaken by a group of citizens from different backgrounds who have agreed on the necessity of sounding a coherent and massive critical voice inside Greece as well as internationally. We have agreed that an intervention is necessary, which will forcefully highlight to Greek and European public opinion three major issues, in a conjuncture when the dominant dilemma "austerity or bankruptcy" has given it's place to the absolutely negative sum of "both austerity and bankruptcy":

1. The collapse of the social welfare state and the intensification of social inequalities

2. The subversion of democratic institutions and civil rights

3. The dissolution of the European vision and the decay of European unity

This initiative does not aim to produce yet another petition and a collection of signatories, despite its having originated on that basis. It aims to produce wider concurrences and spread the message everywhere that the "Greek problem" is simply a warning about the danger that fundamental European social and political values are in. Therefore it concerns us all.

It is our goal that everyone who signs this petition involve themselves, if they so wish, into social action, in a potential collaboration with organizations and collective entities who know firsthand, better than all of us, what is really happening in Greece today, and who are interested in working for a social and democratic Europe. In this crisis no one is alone. The answer to exclusion is participation. The answer to defeatism and pessimism is action...

Greek society is suffering both from the crisis and the responses to it, which have reached a dead-end. Major social and political institutions that were created with enormous struggles and sacrifices in post-War Greece – social security, the public health care system, public education, public transport, the natural and urban environment, the right to live a safe existence, and various elemental goods and services that underwrite the very existence of an already curtailed and devalued Greek state – are all being utterly dismantled so that Greek society is now dying of asphyxiation.

These dead-end responses rest on the blackmailing dilemma: austerity or bankruptcy? Yet, this is hardly a dilemma – it is rather a negative aggregate: both austerity and bankruptcy. The tri-monthly threat to expel Greece from the Eurozone constitutes an ethical alienation and an economic catastrophe, precisely because it strengthens the profound recession, turning the whole of Europe into an agent of uncertainty, financial instability, and proliferation of the crisis. It is Europe itself that is producing the conditions that make it impossible for Greece to fulfill its debt obligations.

It is becoming clearer every day that the specific political response to the crisis, which culminated in the parliamentary approval of the Second Memorandum, is not a viable process of overcoming the crisis or alleviating the long term pathologies of the Greek political and economic system, but a catastrophic process that deepens already existing terms of social injustice. The crisis is not experienced by those who exploited the state and public interest for decades, but by the most vulnerable social constituencies. We are confronted with an unprecedented initiative of an upwards redistribution of wealth and power that subverts the European social model by exacerbating the most extreme economic and social inequities, while simultaneously empowering the return of nationalism and the intensification of racism and xenophobia.

The falsified use of the notion of “reform” is indicative of the incapacity to overcome the crisis. Even those who did hope that the crisis would signal the opportunity to clean up or radically renovate existing institutions understand now that such imposed “reforms” destroy what is left of the social fabric. The dominant discourse regarding Greece, both within the country and abroad, is moralistic, guilt-ridden, and punitive. Every sort of disagreement or critique is dismissed as “populism”, “unionism”, or “anti-Europeanism”. After witnessing the stigmatization of the democratizing process following the fall of the Junta in 1974, we now witness the legitimation of the Far Right, which has been invited to participate in the current government. At the same time, we are bombarded with the demand that government be left in the hands of “Sages”, to coalitions of “technocrats” who will “save” the country. These are powerful autocratic and anti-democratic tendencies that employ an extreme populist rhetoric, to exploit the understandable sentiment of people’s fear-ridden disgust with the now rapidly collapsing old political order. We reject this old order as well, but without, however, subscribing to the shallow “ethnically proud” discourse that uncritically opposes the debt agreements without considering or proposing an alternative plan that can be realistically implemented.

Both Greece and Europe are sinking into a co-dependent crisis that demonstrates, not only the institutional weaknesses of the EU but the unacceptable crisis management by conservative national leaderships with neoliberal statutes and projections. No matter how difficult it seems, we owe it to ourselves to work together for a democratic European society that will continue to project its historical and political values, and provide new content to globalization. In any case, no solution can ever be reached at a national level; it must come to terms with the broader circumstances that affect the entire continent and even beyond. Today, Greeks are being humiliated, tomorrow other peoples, in a process of spreading suspicion and hatred among all. We are facing a catastrophic moment in European history. In this respect, solidarity with the Greek people underlines a major political wager for all of progressive Europe.

Against an uncritical class-based discourse, we owe it to ourselves to respond with critical thought drawn from the daily experience of citizens’ needs, especially those who are targeted unjustly by the crisis. We, the undersigned, are declaring our commitment to engage in the formation of a powerful front for the defense of society and democracy. We are forming a broad coalition that will bring together people from a multitude of political domains with the objective to restore the real meaning of words against an abusive language of self-interest, to help produce more creative modes of communication among social spaces and citizens with different affiliations, who share the elemental values of justice, solidarity, and democracy, in other words, the constitutive identities of citizens in a free-thinking and democratic polity.

Rejecting the logic of the “one-way street”, the ahistorical stereotypes that vilify Greek society thus shredding our collective dignity, we take up the task of elucidating, the real consequences of this crisis, both within Greece and abroad. The Greek crisis is part of a broader crisis that is changing the foundations of our current historical times. In this transitional period it becomes essential to understand that the very meaning of society, and certainly the meaning of democracy and of citizenry, are under threat of being dismantled and must be defended at all cost.

e-mail to koindim@gmail.com

Debts, promises and coups

Schäuble tyrannus

Master and servant

“In Greece the realisation that something has to change, and dramatically, still has to take place among many,” said Schäuble yesterday.

This gem of wisdom, comes from someone who supposedly is in charge of the Greek experiment, the chief of the German economy. I'm not sure how he forms an opinion on what is occurring in Greece, the effects his austerity programmes have on society and the population as a whole, nor do I understand what sort of people advise him on the mindset of the Greek population as a whole. But this didactic tone, coming from someone who obviously, from the effects of the policy he supervises, has not the faintest clue of either the society, or the economy he is helping to demolish and on which he is imposing a developing humanitarian disaster, is colonial in its contempt for the natives.

The Irish Times article linked to in the quotation above, describes Schäuble as one of the negotiators of Germany’s unification treaty, a process which he apparently considers a success and a model for Greece. I leave aside the astonishing idea that the Greek economy is anything like the East German economy was and how terrifying it is that the man running Greece, for all practical purposes, considers it to be a similar project in any meaningful way. I have no first-hand opinion on the matter of course, but it does strike me as odd that the net result is a region which seems to overwhelmingly prefer life under one of the most repressive, intrusive and harsh dictatorships in the Eastern Block, to what Schäuble achieved. So that is what the man calls success: creating mass yearning for dictatorship. I have no doubt that the corrupt and inefficient Third Greek Democracy, ending now, will be remembered with similar nostalgia should current plans persist.

The German leaders' uninformed, yet unabashed shows of contempt, bordering on the racist against Greece and the southerners are, most likely, political theater aimed to please the unthinking Bild readership,vile in its arrogance, but with a broader political aim of enforcing austerity and destroying social Europe as we know it well beyond the Greek borders. Yet one wonders: can they be as cynical as all that? Might the need to make a moralizing argument make them blind and selective as to the sort of "news" and ideas they have about what is happening in the south? I'm not sure... Could it be that it's not just that this is a policy aimed primarily at consolidating the Bild readership, but also a policy informed by Bild?

Meaningless promises burn meaningfully

I have chronicled as best as I could the trials and tribulations of Greek society and its economy, both at Histologion and the European Tribune over the past two disastrous years, and noted the disconnect of the persons in charge of "fixing" the Greek economy with its reality. This whole disaster is turning into a disgusting farce, a farce with real human casualties, but a farce nonetheless. "Greece" is being blamed for failing to meet the programme goals and "lying" to the EU officials. The programme itself cannot be at fault (although it is failing everywhere) so it must be it's lax implementation. This is something that apparently is sold as a fact to northern Europeans, along with the idea that this new package is mainly about "reform" and not about abolishing collective bargaining in Greece, forcefully decreasing private sector salaries to well under official poverty levels and reducing labor law to Burmese levels of worker protection - along with the fire sale of important infrastructure such as the Athens and Thessaloniki water companies and valuable assets such as the state lottery and football pools.

The list of "complaints" about Greece's "broken promises" is impressively ridiculous:

Taxes go uncollected, deficit targets are routinely missed, job cuts from the state payroll are postponed, privatisations have barely begun and pharmacies still shut in the middle of the day. Nearly two years into Greece's bailout, so many promises have been broken that international lenders have largely lost faith in the country's will to reform itself and are torn between imposing stricter outside control and cutting Athens loose.

Let's see how valid the complaints mentioned are:

• Taxes go uncollected:  This is a ridiculous statement. Taxes - flat taxes, and consumption taxes almost all of them- weighed heavily on the poorer and middle class segments of society, have been vastly increased at a time of total economic implosion. You can't collect taxes now, because the capacity of citizens and most businesses is either diminished or non-existent. As household incomes have fallen by ~50% over the past few months, paying last year's taxes for most households becomes an unbearable weight, and for most small businesses an impossibility. The new tax on property including residences, which was supposed to be paid through the electricity bill (or have your electricity cut-off, I kid you not) - has been met with widespread resentment and refusal of payment from an apparently huge percentage of the population, most of which cannot afford to pay the tax, either because they don't have the money (six out of ten households can't afford to even pay the utility bills, much less the extra tax ), or they're not sure that they won't need the money for pressing and basic needs in a climate of total work insecurity, or because they refuse to be blackmailed by an extortionist state. As even the Telegraph rightly notes:

  Greece’s tax revenue from VAT collapsed by 18.7pc in January from a year earlier.
  Nobody can seriously blame tax evasion for this. It has happened because 60,000 small firms and family businesses have gone bankrupt since the summer.
  The VAT rate for food and drink rose from 13pc to 23pc in September to comply with EU-IMF Troika demands. The revenue effect has been overwhelmed by the contraction of the economy.
  Overall tax receipts fell 7pc year-on-year.
  This is a damning indictment of the EU-imposed strategy. Greece is chasing its tail. The budget deficit is stuck near 8pc to 9pc of GDP because the economic base is shrinking so fast.

•  Deficit targets are routinely missed: They are. Of course. The targets are unrealistic to begin with, they are imposed based on political aims and not on some plan for the Greek economy, and then the austerity prescribed causes a much greater slump than originally calculated, which makes meeting the deficit target impossible without further cuts, which then cause a deeper recession which cause even greater divergences from the set goal, and so on in an infinite vicious circle... This forecasting error is not limited to Greece alone, but rather a feature of all IMF analyses, which are tools of political coercion and not objective technocratic estimates:

  The fact is that the optimistic 2012 forecasts presented in September 2011 whenever realistic. It was quite clear that the fiscal austerity being imposed upon the Eurozone was always going to result in sharp contractions in real growth.
  The IMF has a history of providing overly optimistic growth forecasts at a time when it is bullying national governments to impose fiscal austerity. The opposite is also the case, their growth estimates that typically conservative when governments are introducing fiscal stimulus packages

  Thus deficit targets are routinely missed, because they are set up that way, in an imploding economy that has lost 15% of GDP in 18 months...

• Job cuts form the state payroll are postponed: This is hogwash. There is a constitutional ban on firing public sector workers so this can't be done legally as easily as the troika pretends it can. A loophole has been invented in that they can be fired if the position they occupy is canceled. Since 2009, the number of public employees has declined from ~700 thousand to ~500.000. Is this bloated? Well no not even in 2008 it wasn't, according to the OECD:

  Greece has one of the lowest rates of public employment among OECD countries, with general government employing just 7.9% of the total labour force in 2008. This is a slight increase from 2000, when the rate was 6.8%.

  The situation remains significantly unchanged as far as the irrelevance of the size of the public sector employment in Greece to its problems is concerned, even if one adds the broader public sector - quasi-privatized, most of it - which is immediately affected by the troika decisions even though it has no immediate budgetary impact. Now this already low number is to be reduced a further 25%, with promises of firing an extra 150 thousand public employees by 2015. This has literally dissolved the public sector, increased corruption, demotivated the public sector workers and has caused all sort of problems, not least of which is the harm inflicted on the health system, corrupt and inefficient to begin with, which now produces higher mortality rates and superbugs.

•  privatisations have barely begun: This is true. The reason is that interest in privatized enterprises is close to zero, and the goals set were way too ambitious and unrealistic even last year... Now that the Greek economy has tanked they bring diminishing returns. This is aside of any discussion of the social and long-term economic sense and effects of selling-off things such as the water companies. Demanding immediate privatizations now is a demand for allowing the plunder of public resources. That the privatisation plans were not realistic, was noted very early on by many commentators...
• pharmacies still shut in the middle of the day: This doesn't merit a response. The reason Greece is in an unprecedented depression is certainly not the traditional arrangements on the work schedule of pharmacies. If they mean the liberalization of professions, it is now in effect in Greece in such a drastic and idiotic way in most cases, that it has destroyed the livelyhoods of thousands of people while creating practically no jobs for anybody else.

This is the sort of propaganda that promotes that idea that the reason for this whole Greek disaster, is not the actual policies imposed by the troika, which came to Greece with general blueprints and no idea about the reality of Greece's economy, vindicating Joseph Stiglitz's views on the IMF missions to various part of the world - but now with a local, ECB flavor of ineptitude:

When the IMF decides to assist a country, it dispatches a "mission" of economists. These economists frequently lack extensive experience in the country; they are more likely to have firsthand knowledge of its five-star hotels than of the villages that dot its countryside. They work hard, poring over numbers deep into the night. But their task is impossible. In a period of days or, at most, weeks, they are charged with developing a coherent program sensitive to the needs of the country. Needless to say, a little number-crunching rarely provides adequate insights into the development strategy for an entire nation. Even worse, the number-crunching isn't always that good. The mathematical models the IMF uses are frequently flawed or out-of-date. Critics accuse the institution of taking a cookie-cutter approach to economics, and they're right. Country teams have been known to compose draft reports before visiting. I heard stories of one unfortunate incident when team members copied large parts of the text for one country's report and transferred them wholesale to another. They might have gotten away with it, except the "search and replace" function on the word processor didn't work properly, leaving the original country's name in a few places. Oops.

There is no doubt, in short, that the Greek government, a most obedient group of creditors' overseers, lacks credibility. First and foremost it lacks credibility among its population. All polls show, and Sunday's demos proved, that this is a government that has lost all real political legitimacy, and the two parties that support it are in free fall. But the reason it lacks this legitimacy, the reason that they are ineffective tools for the implementation of the IMF/ECB programme is exactly because they are trying to implement a political project of mass pauperization and destruction of the minimal social state that existed in Greece before the arrival of the troika. This is not only an unjust and violent plan, but also a plan fraught with contradictions, misdiagnoses, and ideological fixations that apart from destructive also make it unworkable. It is, I admit, a display of evil political genius, that this impossibility is used to reinforce its brutality, at least as far as the other suckers in this mass bank bailout that is sold under the guise of Greece's bankruptcy, are concerned, namely the taxpayers of the loaning countries. Money given to "Greece" in fact will end up a. feeding Greek banks, already bailed out lavishly on taxpayer money, though their ownership structure will be preserved, with sums that are two orders of magnitude larger than their current market evaluation b. To the PSI participants c. To pay of already existing debt. There is no d. It bodes ill for the future of Greece that the memorandum (which parliament approved in a few hours, in a draft version that had blanks on actual sums of money involved, to be filled after its approval!) is a straight jacket that in practice commandeers the Greek economy for the benefit of bankers and other creditors, to the detriment of its population. That is why the Greek government lacks credibility even to lenders: a democratically  illegitimate government facing elections soon, is not credible because it is not stable. Which brings us to recent developments

An EU coup?

The severity of the measures and the blatant breach of any sort of national sovereignty by the new loan deal, coupled with the growing strength of the actual left in Greece, has created a climate of insecurity for the powers that be in the EU - powers, I should add that are already seen as enemies by much of the Greek population. Thus the German Finance Minister and the EPP axis of austerity around him are apparently considering an ultimatum, or is it blackmail? call it what you will:

There were signs a group of triple A-rated governments, including Germany, Finland and the Netherlands, were hardening their stance towards Athens. During a conference call among eurozone finance minsters, the three countries suggested they may want additional letters from other smaller Greek parties and openly discussed the possibility of postponing Greek elections.
Ahead of the call, Wolfgang Schäuble, the German finance minister, said in a radio interview Greece might delay its polls and install a technocratic government that does not include politicians like Mr Venizelos and Mr Samaras, similar to the model currently in place in Italy.

So elections should be put off, according to the debtors wishes, despite the fact that Samaras has guaranteed elections will be held in April and that it is blatantly obvious that the current government is totally at odds with the popular sentiment, as is the parliament. This is not a democratic union anymore. This is a tyranny where political leaders are extorted into signing letters of submission and adherence to a dead-end policy, that has failed in multiple parts of the world. This is the neoliberal cancellation of democracy, the emergence of the European Central Bank as an instrument of transformation of the European Project to some sort of market-driven dystopia. This is not tolerable, and it's not just about Greece anymore.

It seems that the Greek debacle, the realisation of the extent to which European elites are ready to use the debt crisis as an instrument for the neoliberal transformation of the EU has stirred popular forces around the world. From England, to France, to Spain, , Belgium, Italy, even as far away as San Francisco, a lot of people realize that the fight in Greece is more than about fiscal rectitude and balancing budgets, it is the first in a series of battles that will decide the way the debt crises will unfold in Europe and beyond, whether the EU will become another labor wasteland and whether Social Europe as we have known it will continue to exist and develop.

That is the battle we're fighting here, not just for our own skins, although we're trying to avert a descent to a humanitarian disaster, but also the first battle in a world-wide social war over the debt, over who controls the economy and whom it should benefit...
[A briefer and more focused version of this story can be found at the European Tribune]

The battle around Syntagma square

Around 11, I tried to return to the protests. I had to turn back. It was impossible to reach down-town. ~50 buildings have been set on fire and the smell of tear gas is overpowering. A few minutes ago a police precinct was attacked. A bank in Volos was burned to the ground, while MPs offices were attacked in Corfu, Western Greece and Crete...

The mobilization was unprecedented. By 5 o'clock Syntagma was full, so was Omonia square, and almost all of the surrounding streets - but it's difficult to gauge participation though because as soon as the square started to fill up the police attacked the protesters with large amounts of teargas... There is an estimate around the tweetosphere of 500.000, this is not unrealistic. Bear in mind though that after the first chemicals people, especially older people,  decided not to show up, or attempt to approach Syntagma.

Even the orderly and robust communist union's block didn't make it to Syntagma although they attempted an approach from three different directions. The Syriza block attempted many times to reach parliament. They were pushed back, and the block was attacked around 10 - 10:30.

The cops were throwing tear gas canisters in the middle of huge but peaceful crowds. The number of people injured and taken to the hospital tonight officially is 75, but in reality it's much more, the makeshift first aid stations around Syntagma (some of which I hear were attacked by the police) treated scores of people....



Among the first to be hit were Greek resistance icon Manolis Glezos and music composer Mikis Theodorakis (89 and 91 years old respectively), giving a signal that the police was not about to spare anyone. It was obvious that they had orders to keep Syntagma square clear and they did it with extreme brutality.

After that, things got wild, either through some sort of concerted black-block action, or whatever, one after the other buildings were set on fire, banks initially but then other buildings: coffee shops, and cinemas among them - grand old buildings of great contemporary historical significance sadly.
As I write this Athens is still ablaze, and I fear this might be the start of a trend, not just an explosion. Certainly the number of people despising both the police and the current government skyrocketed today and as the state is reduced more and more to shows of police brutality anti-authoritarian or even just blind violence will grow more frequent.

About the vote: As expected. The two leaders, the political and electoral nullity (8% approval rate) of George Papandreou and Antonis Samaras (soon to follow him in disrepute) threw out a total of 41 MPs from their parties. The two teams of expelled MPs are strong enough to create two new parties: one at PASOK's left perhaps (although most of them are also in disrepute exactly for following the PASOK leadership's orders for so long) and one at ND's populist right. Panos Kammenos, an economic populist (and virulent nationalist , it has to be said) is said to be preparing such a party, though not all of the MPs who were expelled would feel comfortable in such a political environment.

The left will gain: Democratic Left as a more "moderate" left is receiving a huge inflow of moderate PASOK voters, looking for a less damaged political roof, but also SYRIZA and KKE have stabilized at very high numbers and the current climate of popular unrest will probably strengthen them. All three of these parties voted against the memorandum and SYRIZA and KKE have promised to undo all of its measures one by one, on constitutional grounds...

There is talk of a continuous general strike planned for most of the country's public enterprises, and a continuous series of strikes in the rest of the public and private sector. I think it is labor now, more than any other part of the Greek population that will carry the torch of the popular battle...

I would also like to point out that those who are building a Europe of solidarity, a real European Union? well it's not Merkel...

Greece: They must not pass...

"Martial law has to be imposed for these measures to be implemented"

This loan shark says, make them pay, beat them until they pay everything, but don't beat them so hard that they can't keep paying.  That loan shark says, if you don't make an example of this one, the others won't respect you.  Beat them to death.  And it is between these two poles that the bankers, ratings agencies, and EU leaders oscillate...

How is Greece taking the new loan deal that accompanies the PSI? Most compare it to a dictatorship, a foreign occupation, the kind of terms a victor imposes on a defeated country. No wonder: Two years of the most grinding austerity, has caused a destruction of the Greek economy that has no precedent, in peacetime, as official nominal wages dropped 15%, unemployment passed the 20% mark and, according to polling company VPRC, the bottom 90% of Greek households, suffered in 2011 alone loss of income on average ~45% of their incomes. Greece is already a "labor wasteland" where jobs are near impossible to find and when they materialize they are more likely to be "black", uninsured, well below the poverty threshold.Yet the new loan deals mandate among other things:
- The dismantling of collective bargaining and the annulment of the current collective agreement. "Labor law" in Greece will not be a meaningful subject any more
- Across the board cuts in nearly all of private sector wages and salaries to the tune of 22%. This includes the minimum wage (which will be now around 580 euros net, and under 500 euros if you are a new entrant into the job market). This affects all sort of benefits i.e. the unemployment benefit which is reduced to 369 from 461 euros. This in a country where the cost of living in its capital is still higher than that of Berlin
- Immediate elimination of rent subsidies for the poorer, cuts in pensions, mass privatization at fire sale prices (including the Athens and Thessaloniki water companies, and the lottery/football pool company, whose market price right now is at two years profits) etc. This on top of galloping social destruction, a health system that is going to the dogs (the decay of which is producing even stronger superbugs) and public services being destroyed or annihilated.
- At the same time whatever debt will remain - and it will be huge and unsustainable anyway - will now be under English law, and not Greek law, meaning that the terms of the loans will be draconian.

And much, much more: 650 pages of it that Greek MPs were required to read in 24 hours since they received the package, Saturday, to vote on it on Sunday. The process is illegitimate, and constitutionally questionable yet the two government coalition partners (socialists and conservatives - the far right LAOS rightly figured that this will destroy it electorally and removed its ministers from the government), are extorting their MPs: "pain or destruction" they warned, along with the PM. Everything will be rationed, Greece will leave the euro and remain a third world country for ever. Sane people disagree. But they are not in government.

Τhe political system is shaken: MP after MP from the ruling coalition either resigns (at least 5 now, but probably more, I've lost count) or announces that they will vote against the new plan. These include among others the former economy minister Louka Katseli, and notably Socialist MP and former World Bank and IMF economist Elena Panaritis, who was close to tears in the Parliament commission today, stating that in her 16 year experience of drafting similar deals (and she worked with the World bank in Peru, for chrissakes), she has not seen anything quite as disastrous as the troika's offer.

It is unsurprising then that despite being hammered by the media and the Papademos government (the Prime Minister being the sort of economist that argues in parliament that if workers don't accept huge wage cuts  the unemployed will stay unemployed - this as real wages are collapsing anyway,) most Greeks prefer immediate bankruptcy to this. The colonial attitude of Ollie Rehn and Jean Claude Junker only inflamed public opinion. What seeps through the media from EU and especially establishment opinion on how this is all the Greeks fault and they should suck it up because they are overpaid, lazy etc. has already caused the first instance of German flag-burning and has resulted in the first time ever that the EU as an institution has a negative reception according to a latest poll.

And so Greece strikes and fights back:

The Law school in Athens under occupation by students, the health ministry by mental health doctors who protest the near-total defunding of mental care, the ministry of Labor by workers belonging to the communist union, the electric grid authority in the ministry of environment and energy by the power company workers' union (a couple of days ago they held the minister hostage for a few hours, until he was released by riot police)... also occupied: the Holargos(a suburb of Athens) City Hall, in Larissa, Chania, Veria, Ermoupolis and Corfu the Regional Governor's building, in Rethymnon the City Hall, in Chania and Trikala the prefecture offices.

I'm not sure how many of these occupations are still in effect, and it is likely that they have multiplied. They will serve as a launch pad all over Greece for what promises to be the largest protests ever (despite the weather) outside the parliament building in Athens and in major squares all over Greece. People are angry, no longer "indignant" but "outraged". If this government proceeds to pass this memorandum, all hell will break loose, on a social and a political level. The political system is destabilized, all options are on the table and theoretically elections are less then a couple of months ahead. And despite the rhetoric of this government's apologists, today's demonstrations are in reality the true pro-european demonstrations. In Greece today there will be the first of a series of big battles in defense of the European social contract, of labor. A test case, a guinea pig, because it is obvious that in one form or another this austeritarian disaster will be unleashed around the EU, and the core should not feel safe from harm. Already labor conditions and real wages in the EU southern periphery are converging downwards towards the poorest members of the union.

Today, after three days of huge demonstrations and general strikes, Athens will be filled with rage. A police officer's union has declared that it will refuse to attack its brothers, and threatened the troika members with arrest... People are prepared for the worse anyway though. I'm heading down to Syntagma to topple a foreign imposed bankers' government, gas mask in my pocket and mad as hell. They must not pass. They will not pass...

[The Greek Left Review has said it will have live coverage of demonstrations today]

IMF: The gaping abyss of "reform"

...Whenever the IMF tried to take care of countries’ debts, it created more problems than solutions

Former Brazilian President Lula Da Silva

About a month ago, on the 16th of December, IMF mission chief for Greece, Poul Thomsen, told reporters that the country's economy:

“...is continuing to trend downwards, reflecting that the hoped for improvement in market sentiment and in the investment climate is not materializing,”

Having finally recognized, after two years of producing an unmitigated societal and economic disaster, the failure of its plans, its estimates and its projections, one would expect the IMF to backtrack from its pro-depression policies, and start proposing something less catastrophic for Greece and the rest of the EU periphery (and eventually the whole of the EU and the rest of the world). Well one wouldn't really, if they knew the history of the IMF and the recent history of the EU debt debacle, but that would be the rational thing to do. Actually the IMF did the exact opposite: after a treatment that has driven the patient close to death, it is asking to increase the dosage of the same deleterious medicine in line with the Merkozy school of Hooverian economics:

"The numbers show that Greece's budget deficit continued to rise in November, while the recession, spurred on by suffocating austerity measures, has cancelled out a large part of the extra income that the government hoped to gain from emergency taxes. Indeed, provisional figures from the Ministry of Finance show that the state budget's "black hole" broadened by 5.1% in the first 11 months of this year, reaching 20.52 billion euros, compared to a total of 19.5 billion a year ago.

In order drastically to reduce public spending, therefore, the so-called "troika" has asked the Athens government to carry out further severe austerity measures, including the redundancy of a further 150,000 public sector workers by 2015, in addition to the 30,000 who will be released by the end of this month. The demands of the "troika"... were announced by the Minister for Administrative Reform, Dimitris Reppas, following a meeting with representatives of the international creditors: Matthias Mors, Mark Flanagan and Bob Traa. Reppas explained to the officials that the redundancy of surplus state employees has not had the desired effect because the measure was applied hurriedly and without correct assessment..."

IMF eparch for Greece P.Thomsen

Along with all that, and a barrage of new taxes on the already buckling shoulders of employees and pensioners who cannot evade taxes, add the customarily sadistic and destructive extortions accompanying every installment of the "loan package" Greece has been receiving from the troika: demands for lowering or abolishing the minimum wage (it's ~8400 Euros/year net, theoretically, around 7000 Euros for youth entering the work force, and less than that for all the tens of thousands now forced into part-time jobs, usually with full-time schedules, and no overtime, and those who are months behind in salaries probably never to be received) and cancelling the 13th and 14th monthly salaries (misrepresented as bonuses when they are part of a workers' yearly compensation, cut into 14 installments for historical and practical reasons) - and that's for the private sector. Public sector workers having had their (mostly) meager salaries slashed by anything from 30 to 60% over the past two years, and having been fired at random for months now, are planned to be drastically reduced in number (they were no more than 14% of the workforce to begin with note, near the OECD average) while most teachers, and quite a few doctors etc will be among the working poor.
Note that there is still one area in which Greek public spending outperforms most of the healthier economies of the world: defence spending. This is apparently, actively encouraged by both Merkel and Sarkozy.

Is it a Greek thing?

The disaster that has befallen Greece, according to the various fiscal occupation authorities, is entirely of its own making, the reasons the IMF's predictions have failed is because of insufficient political support or not enough reforms. But is that  true? How successful have the policies of uber-hooverism been in less rowdy patients?

Ireland:  Troika warns of future welfare cuts

The Coalition will have difficulty in keeping to its promise not to adjust tax bands and credits in Government and will also need to rely on cuts in social protection to provide the “bulk of savings”, troika officials monitoring Ireland’s bailout programme have determined.
Two separate analyses by the EU Commission and the International Monetary Fund published before Christmas have disclosed details of proposed measures for the 2013 budget, which is unprecedented for Ireland. A total of €3.5 billion in savings are planned; €1.25 billion in new taxes and €2.25 billion in cuts.

The analysis has also criticised aspects of Government policy, including its decision to make larger than expected reductions in the capital budget as well as the lack of punitive sanctions for unemployed people who refuse to seek work.

...All of which lead to the obvious question: Ireland has done what the IMF wanted, but where is the reward?

Despite 'exceptional' efforts to meet IMF targets, Ireland has a rising deficit, sustained emigration and 15% unemployment... The fiscal adjustment, according to economist Karl Whelan, is the equivalent of "€4,600 per person… the largest budgetary adjustments seen in the advanced economic world in recent times". With annual "adjustments" of €3-4bn flagged until 2015, the euphemism of "purposeful austerity" cannot long camouflage the concerted assault on the – already minimalist – social contract...

...Costas Douzinas recently documented how the IMF blames the failure of its growth predictions, and austerity measures, on the impact of Greek public resistance. Yet in well-behaved not-Greece, the same bad medicine has resulted in a rising deficit, stagnant growth, sustained emigration, and unemployment at about 15%. In its latest quarterly report, the IMF praised Ireland's "exceptional" efforts to meet its targets, but this praise comes at a time when the fiction of a reward for good behaviour is falling apart.

Portugal: Income inequality EU15 champion, is heading towards even greater income disparity, as are apparently all the already highly unequal "restructured" peripheral countries - this being of course not a side effect but an aim of the IMF / ECB/ EU programmes. Meanwhile, this year's logistic trick that reined in the Portuguese deficit can't be repeated next year:

The government had set a goal to trim the deficit from 9.8 percent of GDP in 2010 to 5.9 percent in 2011 and to 4.5 percent next year. The 2012 budget includes a plan to eliminate the summer and Christmas salary payments for state workers earning more than 1,100 euros ($1,443) a month. Tax deductions will be reduced and the government plans to increase the value- added tax rate on some goods.

 Or as the IIF has put it:

Portugal, which has “experienced serious fiscal slippages,” is trying to meet a deficit target of 4.5% of GDP. Doing so would require a fiscal contraction valued at 6.1% of GDP, in a year in which growth is expected to drop by 3%. “This represents a very demanding objective and lack of progress could heighten market concern.”

Spain:  The new conservative government has already reneged on its promises as a result of troika pressure and missed targets:

Spain's new government said on Friday that this year's budget deficit would be much larger than expected and announced a slew of surprise tax hikes and wage freezes that could drag the country back to the centre of the euro zone debt crisis. In its first decrees since sweeping to victory in November, the centre-right government said the public deficit for 2011 would come in at 8 percent of gross domestic product, well above an official target of 6 percent. It announced initial public spending cuts of 8.9 billion euros ($11.5 billion) and tax hikes aimed at bringing in an additional 6 billion euros a year to tackle the shortfall.

And things look bleak for the foreseeable future:

Rajoy's government is taking quick action so as to meet a promise to slash the annual public deficit to 4.4 per cent of gross domestic product in 2012, come what may.
The government has acknowledged Spain will miss its goal of reducing the public deficit to 6.0 per cent of GDP in 2011 from 9.3 per cent the year before. The 2011 deficit may even top 8.0 per cent, ministers say.
The Popular Party government says the deficit slippage in 2011 could force it to implement another 20 billion euros in austerity measures for 2012, on top of the originally estimated savings target of 16.5 billion euros.
The government also announced that the social security fund's accounts are worse than had been feared, with a 2011 deficit of 668 million euros. The previous Socialist government had forecast a social security surplus

But it isn't just the unclean PIGS, who are in trouble, austerity (certainly the open-ended, turbo-austerity we're witnessing being implemented around the world) hasn't worked because it never worked in the interests of the societies subjected to it:

Indeed, austerity economics has not worked in one single case in Europe in the last two years. When David Cameron’s government imposed a first round of harsh spending cuts in 2010, it utterly failed to revive the British economy as promised. To the contrary, it probably cut a budding recovery short. Unemployment and the deficit as a percent of GDP remained high. Some pro-Conservative observers I met at the time assured me that the Cameron team, led by George Osborne, the Chancellor of the Exchequer, was pragmatic and would reverse course on austerity if it wasn’t working. Yet when growth basically ground to a halt in late 2011, the Cameron team only doubled down, making further cuts. We need more of the same medicine, they told their citizens, a record number of whom are unemployed. Britian is a hair’s breadth away from outright recession only two years after its last one.

So, no Mr. Thomsen, the IMF / ECB failure was not due to some Greek particularity. It is systemic and ubiquitous. part and parcel of what austerity is supposed to do. Indebted countries in the EU periphery can get an idea about where they will be next year socially, if these policies are not resisted, by looking at Greece now . We're a year ahead as far as social despair is concerned (possibly a couple more years from richer countries). And by just sitting there and doing nothing, dear European reader, you're not helping avert it. Protest, organize, demand. Elect those who are explicitly and adamantly against the destruction of social Europe. Or, as our brothers from across the pond might put it, fight the 1%...

[An extended and slightly rearranged version of this post is cross-posted at the European Tribune]

Austerity: the Greek road to hell

A beggar in Syntagma square, Athens, 27.12.2011

As the Euro crisis unfolds, and the European social model remains under attack by the mindless political armies of orthodox neoliberalism, spread across the continent in positions of power, and the bankers they represent, all is hardly well in Greece. The Greeks, having served as lab-rats for extreme-austerity, have come to realize one thing: Austerity is not a fiscal programme. It is a political project: a project of societal and financial sabotage, aiming at a radical upwards redistribution of wealth in an already very unequal country - indeed a whole continent. This is how the austeritarian disaster zone looks like from the ground:

• Back to the Caves: "Dozens of homeless people in Athens will spend the Christmas holidays in the sheltering caves of Philopappou Hill, away from the rain and the cold weather.
  According to two reports conducted by the Ministry of Health and the Municipality of Athens and published by Real News, there are many new age homeless, who once were businessmen and traders, and are now penniless, lying on the streets.
  The shocking truth is that among those people there are families as well."

• 

  Homeless in Athens

  Meet the new homeless: With an average age of 47, 11% of Greece’s homeless have a university degree (!) and 23.5% hold a high school diploma, while only 9.3% are illiterate. The new Greek homeless class members have laptops and iPhones, remnants of their “old” lives. “They come to us in suits with their laptops in hand. These citizens a couple of months ago had ordinary lives. They had a job, a home and car,” says Nikitas Kanakis, the head of Doctors Without Borders in Athens. Counselors from the Department of Homeless Services describe a similar situation. “We even have homeless from suburbs like Kifisia and Voula [upper class suburbs of Athens]! They come  here with their laptops and expensive smart phones they once used for their work, shocked and depressed”.

• Hunger: Athens Mayor George Kaminis told the daily that the city's homeless had increased by around 20 per cent while queues at soup kitchens organised by municipal and church organisations were up 15 per cent."Care workers no longer meet typical homeless people, they meet a person who likely had a perfectly organised life weeks previously," said Kaminis, who has asked for additional state funding for city welfare services."We have noticed a dramatic increase in our mess halls over the recent period," added Chrysostomos Symeonidis, head of the Athens archdiocese poverty fund. "We distribute over 10,000 meals on a daily basis and 250,000 meals are given out nationwide on a weekly basis," Symeonidis said... [oh and Starvation Recipes are all the rage]

• ...hunger in the schools:  “Our pupils faint due to starvation. We see our pupils coming to school with holes in their shoes. They don’t even have money to buy food from the school canteen”

• Which then leads to abandoned children: 'Propelled by poverty, 500 families had recently asked to place children in homes run by the charity SOS Children's Villages, according to the Greek daily Kathimerini. One toddler was left at the nursery she attended with a note that read: "I will not return to get Anna. I don't have any money, I can't bring her up. Sorry. Her mother."'

• The disabled are also victims of the policies pursued: "In August, a five-year-old program providing deaf people with interpreters was suspended after the government abruptly cut its funding to less than half. Overnight, 15,000 deaf people around Greece were left without help to report a crime to the police, rent a house or go to a job interview. Funding cuts have opened up gaps across welfare services, with slashed services and longer waiting times for vulnerable groups including the blind, recovering organ-transplant patients, autistic children, and paraplegics in need of physiotherapy"

• At the same time the already decrepit health system is further eroded according to The Lancet: "Overall, the picture of health in Greece is concerning. It reminds us that, in an effort to finance debts, ordinary people are paying the ultimate price: losing access to care and preventive services, facing higher risks of HIV and sexually transmitted diseases, and in the worst cases losing their lives. Greater attention to health and health-care access is needed to ensure that the Greek crisis does not undermine the ultimate source of the country's wealth—its people". Giving birth is now a luxury activity. I suppose women are expected to give birth at home by themselves - a great way to bring infant and maternal mortality to truly third world levels...

• And, desperate, people kill themselves at an unprecedented rate:  "Greece's suicide rate has reached a pan-European record high, with experts attributing the rise to the country's economic crisis and painful austerity measures. Statistics from the Greek Ministry of Health show a 40 per cent rise in those taking their own lives between January and May this year compared with the same period in 2010"

And the economy? Surely all those wizards of austerity must have improved the flailing Greek economy, raising its productivity etc. No? Well... No:

• Greece: heavy industry, desperate measures to survive: Heavy industry in Greece, particularly the sectors that produce steel, concrete, aluminium, copper and paper, are desperately trying to find ways to stem some of the negative effects of the economic crisis the country is going though. Some companies even sell up to 70% of their production abroad at cost price, just to be able to keep producing... Energy-intensive industries in Greece fight a daily battle for their survival on a domestic market that has been in recession for four years, with low liquidity, limited financial resources, rising interest rates and a series of austerity measures that seem to ignore their impact on the real economy, like the high taxes on energy

• Unemployment is rocketing, reaching fearsome heights:
  
  
  

  The jobless rate rose to 17.7 per cent in the third quarter compared to 16.3 per cent in the previous quarter and 12.4 per cent in the corresponding quarter of 2010, the Hellenic statistical authority said... It added that there were over 878,000 people out of work during the three-month period, most of them women and young employees aged under 30

• At the same time young (and not-so-young) Greeks are leaving the country or are planning to leave soon, the most highly educated and employable among them: "Lois Lambrianidis, an economist and geographer at the University of Macedonia in Thessaloniki, told The Australian that 9% of young Greek graduates emigrated between May 2009 and February 2010. "And in recent months, the departures are accelerating," he said, noting that Greece's population of 11 million includes about one million immigrants while the diaspora has seven million – and counting"
• While alternative local currencies have cropped-up in many towns, business is dismal, as more and more small and medium businesses go broke, and one in four shops have closed. This Christmas retail sales have dropped by 30%... So much for a festive season...
• At the same time the wealthy are jumping ship. As enormous sums of money are already out of the country, invested in property as well as deposited in banks in tax-havens around the world...
• The prospects are bleak, as the deep recession is continuing and will surely extend to 2012 (and probably beyond that if policy doesn't change) making it a five-year depression.  
• The tax system has been transformed into a shifting, irrational mechanism, whose sole aim is to extract the last drop of blood mostly from those that already paid their taxes, or indeed those that were too poor to tax. The government has imposed an extra, regressive property tax, to be paid through the electricity bill, threatening to cut-off electricity to any households that can't, or refuse, to pay it. However there are so many times a vampire can feed off his victim. Already they are facing diminishing returns and a tax revolt
• Wages are slashed across the board. After cutting public sector wages anywhere from 30-60%, meaning that most doctors and teachers are paid subsistence wages, the IMF, true to its traditional "enemy of the people profile", is demanding a similar across the board cut in the private sector (what little they have left of it), in a job market where most workers are behind pay (some many months), no jobs are available and real wages are already below the official minimum wage

Things are, in other words, tough. Very tough. The kind of tough one associates with a war or a huge natural disaster. And do not think for a minute that all of this is irrelevant to you: if you live anywhere in Europe, periphery or center (but at this point probably anywhere in the Western world), this is in one form or another the future that has been prepared for you. Greece has been the canary in the coal-mine for social Europe in this crisis, a wretched and sorry bird, to begin with, admittedly, yet an indicator of the way things are going in Europe. Regardless of whether austerity is systemically viable in its own terms (it most probably isn't), the news is that the canary, is slowly yet steadily croaking. It is dying. Greek society is taking blows that will transform it for ever, in a path that no one knows where it takes and it is unraveling. So our suicides here, our untended ill, our abandoned children, our middle-class poor, our new homeless and hungry, they are an omen, a sign of things to come, across Europe. Or that seems to be the plan. The good news is that this society is taking it a lot better than some (I too) initially expected it would. Solidarity networks have cropped up all over Greece, while the support to the striking steel-workers (from Greece but not only), two months now in struggle for their livelihoods and lives, is going strong and their struggle is right now the rallying point of resistance to the destruction of all of our collective lives.

High school students, express solidarity with the steel-workers after having gathered a few Euros from pocket change to contribute to the strikers fund

An interesting thing is happening at the political level: the "unserious" Left is gaining. In a recent poll, the "electoral influence" of the three left of the mainstream parties adds up to 37% - 41 percent if one adds up the smaller parties and the Greens, a number that is unprecedented and apparently rising. Whether this will coalesce to a viable government is doubtful: The communists consider everybody else a capitalist stooge, not serious about systemic change, the Democratic Left, the right splinter group from SYRIZA, seems to be more comfortable discussing a collaboration with PASOK (assuming there will be a PASOK left by the time the elections arrive) than with everybody else. However, popular pressure can work wonders, and one still hopes that  Greece will be the first to throw a political wrench in the working of the austeritarian banksters and their political employees in Europe. That is assuming that the ruling Socialist - Conservative - Far Right coalition under a former ECB vice president, actually deigns to hold elections sometime in the near future as originally promised.

The future remains at this point very opaque. The issue is whether the rest of the European peoples will need to arrive at the point of despair that Greeks have reached, before they react.

Greece on the Brink of Emergency: A Matter of Days

As Greece prepares for a 48 hour general strike, promising to be the largest ever in a series of far from insignificant mobilizations over the past year and a half, there is a sense here that the coming week will be historical, fateful. The success of the strike over the following two days will be hard to measure, though it seems that there is an unutterable goal of toppling the government, which acts as a quasi colonial regime, pressured to surrender the last vestiges of sovereignty, imposing a catastrophic austerity in full knowledge that it is catastrophic.

The situation is reaching a critical point and I reproduce below, as a general intro, a brief analysis on the current situation that Aris Leonas has been kind enough to send me, with minor edits:


Greece on the Brink of Emergency: A Matter of Days

by Aris Leonas

[Note: This text is part of a longer article about the global crisis and resistance that is being written by Kolya Abramsky, and will explore questions of the emerging worldwide political struggle which is the latest stage of the crisis’ development; the limits of political reformism; control of key means of production and reproduction; and the question of force. It was hoped that this longer article could be finished already by now, but this has not been possible. However, due to the urgency of the situation in Greece, and the fact that the situation can change radically in the next few days, he has decided, together with Aris Leonas, who is the main author of this text on Greece, to send this part out separately].

In Greece a number of factors stand out, suggesting that Greece is on the verge of some major changes. The disruption of basic operations of the state in conjunction with the widespread certainty that the Greek debt cannot be controlled (constant rumours of default in the coming period) compose a picture of political instability and crisis which seems to be the precursor of a more generalized political crisis to be spread to the rest of the south European regimes first and possibly to the heart of the Eurozone given the accelerated tensions of the financial crisis and the disagreements among current leaderships in the Eurozone. The remaining days leading up to the summit of the EU leaders, on the 23rd October, and the G20 summit in the first week of November are considered crucial. Something has to give, and soon. And, it could go in many different directions, for better, or for worse. Rumours, which may or may not be true, are circulating regarding possible deployment of the EU EuroGendFor (Euro Gendamerie Force) military personell being called to Greece in the days ahead...

On the one hand, there has been an incredible level of political activity and mobilization from very broad layers of society. This has continued to intensify, bringing in ever greater numbers and becoming more and more continuous as the crisis has deepened much further since 2009. The sequence of movements follows this general scheme: broad student movement and riots during 2006-07 before the official announcement of the Greek debt crisis; weeks of urban rioting that took place in December 2008 as young people responded to the police killing of a teenager; mass demonstrations; 13 general strikes since the IMF deal; most political form of the movement of indignados (compared to the similar movement in Spain); the last step in this series of resistances is expressed through occupations of public spaces and buildings, and strikes in key industries such as transport or railways.

On the other hand, this high level of mobilization has not stopped or even slowed down the pace of austerity measures, nor the plans for mass privatizations, and repression has been growing. Protests have been met with extreme police violence, and increasingly strikes are being declared illegal.

Despite high levels of organizing, people report a profound sense of despair, and no clear sense of alternatives being built by people. There is widespread panic and a general sense of economic, political and mainly social collapse. Increasingly the reproduction of massive parts of the society is becoming more and more difficult, as society’s functioning grinds to a halt. Nothing is working, neither public services nor private deals.

Political organisations, such as parties on the left side of the spectrum to groups in the anti-authoritarian or autonomous spectrum, are under enormous pressure. The acceleration of the economic crisis has resulted in a serious political crisis and the complete lack of a concrete alternative is obvious. Voices on the left spectrum have begun whispering about the need to form a left government constituted by a broad coalition of the left parties and smaller groupings. However, they have been unable to articulate this idea in such a way as to inspire the broad movements and struggles which have appeared in a very sudden and decentralized way. This, despite the fact that these parties are actually potentially very strong, as they account for 26% in the polls, while the party in government accounts for only 15%, with almost 50% of the voters having declared that they will abstain from voting in any future elections. The range of left parties includes: Syriza, a left coalition born after the decade of Social Forums; the Communist Party – a traditional communist party with its own unions, that are widely criticized for being reluctant to join with the rest of the left in some type of coalition; Antarsia, a small coalition of anti-capitalist groups; and the Ecologists-Greens, a relatively new party linked to the European Greens).

People are under huge pressure. Increasing sections of the population are unable to pay taxes, pay back loans or even ensure the satisfaction of their basic subsistence needs, such as electricity, health services, housing etc.

Unemployment is increasing fast, and is expected to reach an average of 25% in the first semester of 2012. High taxes are being imposed through electricity bills, and the economy has contracted fast, and fear, or even panic, reigns among large parts of the active population. All of this has created a fluid mass of ex-workers, as well as over-exploited and insecure employees. These people are not connected to the traditional trade unions (these are the unions which have traditionally been, for the most part, attached to the two main political parties, i.e. the ruling PASOK party, and Nea Dimokratia, which was in power until it lost the elections in 2009). Unemployment and insecurity mainly affect the younger generations, which are forced to emigrate (mostly to North and Central Europe, and also Australia and Canada). This is especially so for high-skilled workers and those with with university degrees.

Current situation:

The level and intensity of struggles has grown rapidly since the summer and during the first weeks of October. The Greek version of the indignados movement (“Aganaktismenoi” in Greek), which ended with riots in June to mid July, seems to have completed its first cycle of existence, leaving behind a space for a broad basis for interaction among different movements and groups across the country. This has expressed itself in the form of many decentralized and spontaneous activities such as strikes and occupations in the public sector, as well as mass demonstrations and rioting. During this period, new forms of committees of struggle have emerged, increasing the number of participants and showing a willingness to unite behind the call for a 48-hour strike which was issued by the General Confederation of Workers (GSEE) and the Confederation of public servants (ADEDY) for the 19th-20th October. Although these committees are still very new, they have already shown themselves to be highly stable. They vary both in the form and place of struggle, ranging from low level unions in workplaces, to assemblies that organize occupations and neighbourhood assemblies that organize local struggles and unite during major calls, such as calls for demonstrations in the centre of Athens.

Several new forms of struggle have been born during this period. This includes occupations of (8) ministries and government offices, disruption of operations at different levels of the state, from local authorities all the way to state services such as tax offices and courts etc., the occupation of productive infrastructure (means of public transport, railways, occupations from the powerful union of workers in the Public Power Corporation). Every day smaller protests also disrupt the regular functioning of commercial, economic and social life. However, this high level of mobilization has, until now, as we mentioned, not managed to stop or slow down the pace of austerity measures, nor derail mass privatizations. Furthermore, the efforts at creating a concrete and broad organizing umbrella of all these movements has, so far, not given rise to any kind of new institutional form. Left parties, activists and workers meet during these struggles in a rather chaotic way. It is becoming increasingly important to try to ensure that these committees which have emerged become legitimate focal points for building and defending mass based popular power through struggle.

Until now the government has been trying to avoid any uncontrollable explosion from below (such as the ongoing occupations in the public power corporation, strike of workers in the cleaning sectors of the local authorities). Repression has been growing. Street protests are met with increasing levels of violence from the police. More and more strikes are declared illegal, and private companies are being hired by the government to take over tasks that are not being carried out due to occupations and strikes in the public sector etc. The army has even been called in to clean city streets, as cleaners are on strike.

Things are now coming to crisis point, and it is matter of days. In the run up to the summits mentioned above, the movement from below is intensifying its actions through strikes and demonstrations across the country. At the same time as mass activities are increasing, the government is also making moves from above, apparently in preparation for what will follow should the current government resign, and these plans are taking the antidemocratic measures to new levels, based around a state of emergency.

Certain moves from within the government show that this week is probably the most crucial of the crisis period in Greece. Especially important in this regard is a long article signed by three important ministers on Sunday the 16th October, and supported by the assistant PM and Minister of Finance E. Venizelos. This article asks people to loyally follow the policies agreed with the IMF, and to establish the consent of the silent majority against, the so-called vocal minorities who are disrupting the country’s political functioning. This is full of incredibly antidemocratic and authoritarian overtones, suggesting the urgency of the situation. Another important factor that adds to the image of a collapsing government is that increasing numbers of important trade unions and very large numbers of party members have been withdrawing from the ruling PASOK party, as well as one member of parliament. Rumours are rife about what scenarios might develop in the next-days, and it is virtually impossible to know which have their basis in fact and which do not. This includes the rumour that some kind of new antidemocratic social and political compromise will be established among the different centre-right parties, in the form of a national unity government, or the installation of a government of technocrats, or the installation of a state of emergency etc., in order to pre-empt the threat of an even worse scenario unfolding, a threat which remains unspoken from all sides. Presumably, this unspoken threat, which established political authorities understand all to well, is the threat of revolution from below. The question of political power in on the table, and the political crisis will be resolved in the struggles in the days and weeks ahead, in one way or the other.

This is a call for people in Europe, and other parts of the world, to watch closely the developments in Greece, and to be ready for the next stages in the development of this political crisis, which will soon spread, in all probability first to other parts of Southern Europe, and later to the European Union as a whole. The political crisis in Greece has taken approximately two years to reach its climax, and this time frame is likely to be greatly reduced in other countries as the European and global crisis accelerates. There is no time to lose.