The imposition of German demands on Greece, without consideration for its democracy, sovereignty or interests, is one of those moments that changes everything.
I grew up with a European dream. Born in 1958 I was politically aware from a very young age. Much informed my early views, but most influences were, inevitably, personal. I wanted comprehensive education because of the damage the 11 plus caused to my family. I was always interested in Ireland because of my obvious family connections. And Europe mattered because I never met the grandfather who gave me my name as he died as a result of service in the Royal Navy during the Second World War.
I recall the 1974 EU referendum. I was for Yes, unlike many I knew. I had reservations, but not many when I made up my mind, because I was young. My reasoning was simple: this was a means to prevent the risk of war and to replace it with cooperation. That was good enough for me, but forgive me because I had not by then studied all the flaws in economic thinking on which the Common Market (as it was back then) was based.
Through think and thin I have stuck with Europe. That's been tested time after time by the neoliberal dogma it has espoused that has caused so much harm even when, on issues like tax, the EU has overall been a force for good.
But there come moments when eyes are opened, and yesterday was such a moment. If the Greeks did not believe that the Germans would try to destroy their democracy, remove their fiscal sovereignty and transfer their epicentre of power to Brussels, then nor did I. I thought that when you signed up to a deal like the euro it was akin to a marriage: for better, for worse; for richer, for poorer.
I was wrong. That is not what the Germans thought. This was, to them, just a deal. And the deal was about money, and nothing else. It was a banker's deal: one where conscience, obligation and respect were all missing. Where the ability to repay, come what may, was all that mattered, with security to be taken (even when not specified in advance) with menaces attached in the event of failure to make the scheduled commitments.
And Germany's view prevailed.
In which case this is no longer a Europe I can subscribe to.
This is not about dreams.
Or peace.
And fraternity.
This is about the raw, cold, power of money where that power is used to subjugate, oppress and demean.
That is not a Europe I want a part of.
I will have to think hard on this issue. Dreams should not die overnight. But it's hard to see how this one has not. Or how I could now support continuing membership of the EU.
How, I have to ask, could any democrat do so?
Or any genuine (as opposed to neoliberal) libertarian?
Or a dreamer, come to that?
It feels very much as if my dream is over. And that I do not like what I see in the dawn.
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This is about the raw, cold, power of money where that power is used to subjugate, oppress and demean.
I think slightly differently – because after all Frau Merkel won’t bat an eyelid at injecting vastly more money into Ukraine. It’s certainly about sending a political message, and not one of peace either.
I find it strange that the English are so horrified that Germany does not want to continue to support a corrupt and pensioned Greek population with their hard earned tax money. Did your country join the fiscal union? Is it your money? Each German, including babies, will contribute over EUR 700 to Greece. Is that the Europe your country (didn’t) subscribe to?
Is it your money?
You forget there is €1trn of QE funding in the EU right now
If only you got facts right it would help
The problem with “we’re supporting Greece” is that Greece and the other periphery countries have been propping up the chronically demand-deficient German economy since the turn of the century, and now Germany and others are refusing to return the favour by allowing inflation in core countries to at least somewhat offset the grinding deflation being undertaken in the debtor nations. Furthermore, most (90%!!) of the “Greek bailout” has, in fact, gone to recapitalising German and French banks. At least the leaders in the US and UK were honest enough to call a bank bailout a bank bailout, which is more than can vs said for the Euro core leaders.
hear hear!
This view that German’s people money support a corrupt Greece, where people parties and I don’t know what else, is a huge myth. People in Greece, those who are not in the 26% percent of unemployed, work from 10 to 12 hours for the minimum wage possible, and the highest percentage of taxes goes to the big well of debt. Really, how much Germany has benefited from the crisis, from the deposits that are transfered in German Banks and from the historical low interest rates of German bonds, guaranteeing the lowest cost of borrowing from the markets?
Well, the arrangements of 1953 are a long time ago now. In any case, no one expects qualities such as generosity or humanity in these matters from states – they are, as you say, spending other people’s money anyway. States aren’t good, either, at accepting responsibility for their own actions – If there was an ‘original sin’ of creative accounting when Greece joined the Euro, Germany, like the rest of the Eurozone, was complicit in it. They knew.
But what’s surprising and depressing is the lack of economic literacy. Without debt forgiveness, nothing will be solved. ‘Punishing’ the Greeks will achieve nothing. Austerity will not work. At the very best, this policy will leave behind a lasting legacy of bitterness and hatred. If I were German, I would not be planning a Greek holiday for a very long time to come
I have never said states other people’s money
That is an economically and legally bankrupt idea
But debt forgiveness is still required
Lisa the trouble with taking a strictly moralistic view about debt, is that it just doesn’t work, and in the end makes us all poorer. As Paul Krugman is fond of saying economics is not a morality tale. Money is there to enable us to trade, for getting and spending. Even if you put aside the appalling cruelty and humiliation the EU is knowingly inflicting on Greece, what they are doing solves no problems, just guarantees that they will have to return to this in a few years time, when the situation will be worse and who knows, but they may even be dealing with perhaps the neofascist Golden Dawn, or maybe a Russian satellite state.
Lastly even if you believe austerity works, (a tough ask), and that it is right that debts should always be repaid, Europe, and especially Germany and France are themselves partly to blame for this situation If you make a rash loan, should you still then always be entitled to collect and in full? For a fuller explanation try reading this http://marianamazzucato.com/2015/07/13/greece-and-the-eu-a-macro-and-micro-mess-up/
It has also to be said that Greece’s problems run very deep and they are as much cultural as political. How they will be addressed I don’t know, but the EU is just making them worse. http://www.iea.org.uk/blog/the-problems-of-greece-deeper-you-think
The Euro is too cheap for Germany, and too expensive for southern Europe, so these problems will continue to manifest themselves unless there is a complete redesign as to how it works, or a full federal Europe. But who would want to join an organisation capable of so much cruelty?
Like Germany, Greece has very low fertility and increasing life expectancy. Before the crisis Greece attracted a lot of economic migrants to the country, which enabled it to maintain a reasonable size of workforce given the aged population. It may have been a generous system, but Greece has no welfare state. If sub-prime hadn’t had come along the pension system wouldn’t be any of your business. Many of the pension funds were very well managed. The advantage of their method, was that the funds were separate, which can think of ring-fencing and diversification.
The problem now is that with 30% unemployment, drops in wages and increased taxes and negative net migration the labour force is rapidly shrinking while the aged population grows. The government can’t borrow from the markets to supplement tax volatility so non-problems like seasonal economic volatility feed into the growing problems. It’s very unfair on the pensioners that chose professions because they knew the pension fund was healthy and well managed. But I don’t think they mind if they get less money if their fund was raided to help other funds.
But the big issue, which many countries have had to face, is related to unexpectedly large increases in life expectancy and a too large benefit defined component to the individual pension accounts. Britain had a pensions crisis for this reason. And Britain had private funds going bust – people had paid into a pension fund for 45 years and were told one day the fund had collapsed. They were to get nothing.
Do you know that there are over 350,000 Greeks working in Germany? The Greek taxpayers funded their education and will probably never see a return on the investment. And like Ireland, Greece was bailed out only to save the banks the first time. Greece didn’t receive 30 billion direct loan from Britain on top of the bailout.
Look at a map. Greece id isolated in the very poor and undeveloped Balkan region. Greece can’t do any more to show it wants to progress than by standing out completely in every meaningful social and economic measure from its closest neighbours. It is the only truly outstanding country in Europe.
90% of the money is going to Greece’s creditors, not to Greece.
Nine tenths of the bailout funds go to Greece’s creditors, not to the country itself.
Germany would not have the wealth it does if not for the generosity of the UK and other countries like Greece owing $100 billion to France and Greece alone. Will you tell that to the little babies when you and they grow up?
I think I may slighttly further down the line than you on my potential to vote No to Europe.
I had been a stuck on Yes to Europe. Largely because I agree with the idea and have thought that we are better in than without.
However 3 things have either pushed me to No or at a mininmum are making it hard for me to support Yes.
1: TTIP (Transatlantic Trade and Investment Partnership)
2 Forced tendered of semi-nationalised industries (see Scottish Ferry operator CalMac)
3: The Greece situation.
This despite the obvious political opportunity to gain Scottish Independence, if after the EURef Scotland votes Yes, but England votes No.
As I say, I thought I was a stuck on Yes, but I may well now be voting No.
What I do now know is that I won’t be campaigning on the streets for either side, when I had thought that I would be helping spread the Yes message.
I’m coming to that view as well. I voted Yes in the indyref, but will probably vote No in the EUref. TTIP and Greece have convinced me that Europe is a failed, brutal, neoliberal project that I do not wish to be part of. I never thought I would say this, but I prefer Osborne’s austerity to Merkel’s any day.
What gets me is the stupidity. Harshness one can take, if it serves a good purpose. But this seems vindictive, and a power grab. That’s the only rational interpretation you can put on it, because it will not lead to a Greek recovery, but further Greek weakness. I want no part of Merkel’s empire.
This is financial colonialism pure and simple. It is little different to how the British Empire used to bleed Australia and other colonies of money.
We should call it for what it is.
The problem is that the anti-EU brigade seem to be for neoliberalism and against the social protections which the EU provides. The centre-left needs to develop its critique of the EU and probably doesn’t want to get into bed with UKIP.
I agree
That’s next
With respect Mr Murphy, you say that, but here in the north west of England UKIP is making electoral roads into Labour.
Our traditional working class does not eat Polenta or read the Guardian, but their putative Labour representatives do. And more importantly, you would never catch a UKIP candidate eating Polenta.
I am old enough to remember a proud Eurosceptic Labour tradition, under the stirring leadership of Michael Foot. There were giants then, who saw Europe for what it was: Anthony Wedgewood-Benn, Peter Shaw and Enoch Powell. Where are their heirs now?
I agree with you about Labour and UKIP
The need is for an alternative
And heirs to the giants
Strongly agree with this. I have noticed over the past few days an increasing number of left leaning commentators agruing that it may now not be possible for them to argue to stay in and they may argue to vote to leave. I find this very damaging and wrong. Not because the points that you and others have made are wrong but because these points are a whisper in the overall debate.
The exit capmaign will be under a nationalist, anti-immigrant banner. Those on the left may argue that this is not what there out vote means but there voice will not be heard. The message we will send by leaving the EU is not that we are opposed to TTIP, opposed to the treatment of Greece or are opposed to rules on privatisation. Instead leaving the EU will send a nationalist and anti-immigrant message.
There may well be a time for those on the left to vote for Brexit but this is definitely not it.
I understand all those concerns
The other point here being that leaving the EU under the current context will only make matters worse for ourselves. The government is held back by the EU in some ways, so ironically many of the things that are playing out in Greece that those of us on the left may be horrified by are likely to be worse in a post-exit UK.
Hell, the government will find a way to agree things like TTIP EU or no EU, and they’re hardly opposing privatisation (rather, the opposite). So the left’s critiques of the EU, Greece withstanding, don’t make the case for an exit given what the situation in Britain is anyway. Then there’s freedom of movement, access to services and jobs, the social, environmental and work protections…
In short – the EU is crap. The EU is proving itself to be even worse than crap. But it still doesn’t make sense to leave.
I did feel like that
And I am now thinking about the alternatives
The thing is, if we vote for Brexit we can still trade with Europe as Norway does as part of the European Economic Area. There will be strong pressure from the US to do this. Also logic – much of our trade goes to Europe. As part of the European Economic Area we will have to agree to EU policies on freedom of movement and economic activity. Norway is full of Latvians and Poles, Bulgarians, etc., working there. That is part of the conditions of trade with the EU.
So if you are on the left, there are no issues with this. It is perfectly valid then to adopt a leftist Euroscepticism, not based on anti-immigration, but on anti-austerity and opposition to ruthless predatory neoliberalism.
But without an argument for exit, the anti-EU position will be forever abandoned to the extreme right. It’s no argument at all to say don’t argue because there might be nasty people who also oppose the EU.
Malcolm, note th Times report that says Cameron’s pending “renegotiation” includes an opt-out of the social chapter. Where, then, the so-called protections?
None
There is a perfectly reasonable left critique of the EU developed by the No2EU campaign which should provide the basis of an ongoing campign. No2EU may be far to the left of what you envisage but if you look at its material there is little fault to be found with it, although the purely economic arguments need some development. However its trade union supporters, notably RMT, have cogent arguments in the area of the politics.
I do not believe that politicians can solve the problwm of greed and selfishness so endemic today. The sheer hipocracy of the current situation being displayed by our ‘betters’ makes me cringe.I can clearly see that we now have to become self-sufficient to a degree that is no longer possible since since the various Acts of enclosure. I fear that democracy is already lost and civilisation could soon follow. The ‘Rich Fat White Men’ have already undermined us to such an extent that there is nothing left end no hope either.Is this the biblical ‘time of the end’ I wonder
The left needs to rediscover its anti-EU stance. While the EU social chapter provides a lot of protection for workers, TTIP and the whole Greece tragedy are most definitely against left leaning ideas. The EU no longer serves the people, but instead serves the banks.
The trouble is, without a left wing anti-EU narrative, people are stuck with UKIP’s neo-liberal anti-EU policies.
So we need a narrative for European Co-operation
That’s exactly it, Richard. I’d reached that point up until May. I voted ‘No’ in 1975, mainly because of discussions with my ‘boss’ who was a nice Tory with an economics degree (he predicted we would lose our manufacturing base!) although I believe that he voted ‘Yes’ along party lines. I then got to like the Common Market – until I met my partner who doesn’t. I became steeped in the left anti arguments but then concluded that we’re not going leave so why not co-operate with left in all the EU countries. I still think we won’t leave, but Cameron is going to have a hard job to get the result he wishes – made even harder with the disgusting treatment of Greece. I originally thought to vote ‘No’ simply against Cameron, but the fact that he will be negotiating to get rid of the protection of workers’ rights and the environment, has determined me to vote ‘no’ with gusto.
Its all very sad, I must say that the only benefits I saw in the seventies were a reduction or elimination of trade barriers and a better chance to avoid further wars in Europe. My worry was that as a socialist (small s) it would be much more difficult to fight against Euro-capitalism. In later years I did see the benefit of legislation to protect workers (eg Working Time Directive, legal right to holidays etc). But now I predict the rise of Golden Dawn in Greece as the population are driven further into despair and I think I will be voting (should the referendum actually happen!) against remaining in a Europe run on behalf of bankers and the Fourth Reich.
Without a campaign and a win for the argument for a strong welfare state in the U.K in parallel with one against the capitalist collegium of the EU, pro-exit arguments, regardless of intention, will leave the UK population with a ruling class licking their lips in anticipation of the feeding frenzy an exit would allow them. Look how far they’re down the road already. All of this has been allowed within the EU. We should consider closely what the UK ruling class has waiting for us on the other side. A lot of people will die because of these decisions if this group has its way. In other words, this, in its current terms of contention, is a dispute between sections of the ruling class over the question of exploitation rates and international trade rules. And it’s not going well for us even whilst we’re in the EU. It will get worse. If we leave under conditions of anything other than an even stronger rejection of austerity, not of the EU per se, than the Greek rejection, and with an actual programme and plan that will not be discarded, then we will be stitched up for life and then our carcasses gutted by the owners of our workplaces, the ones who fund our current political masters.
Without the right kind of politics, exit is merely a step into an extremely ugly place through a different front door.
I agree: an alternative is needed
And one far removed from the right
Good blog. I too am moving from yes to no. What has become very apparent is that it is impossible to develop a socially progressive econonmy within the constraints of the EU. I echo though the view that those from ‘the left’ must not allign themselves with UKIP etc. That would be a disaster. In Scotland, regardless of whether you voted no or yes, it is clear that Labour campaigning with the Tories was a huge mistake.
Malcolm,you are right. There needs to be a centre -left movement which has an alternative to neo-liberal Europe. I am sure that there are many across Europe who don’t accept the dominant political/economic position. In my opinion the big neo-liberal players would be quite relaxed about the UK leaving the EU. A case of divide and rule.
If we leave the EU we still have a neo-liberal govt. here and even if we could change it, our power to influence the EU would be much reduced. We could still find ourselves in the TTIP even if we left.
We have been slow to build movements across Europe but I feel this is the best way ahead.
I will be working on ideas
I promise
Trouble is centre left = neo liberal.
This is the most important argument in favour of staying in the EU. We have a government which in just two months since being returned – with a *very* small majority – has mounted a merciless attack on the most vulnerable and disadvantaged sections of society. And there will be worse to come. I share all the concerns expressed by Richard & others, but leaving would be no protection against TTIP and the prospect of a Tory government unfettered by any restraints from EU directives makes me shudder.
Good point
However, having seen the EU excesses in its dealings with Greece, the idea of restraints from Brussels is surely redundant. Also, TTIP is an EU pact anyway so at least with exit, there might be some possibility of democratic input at national level to moderate the worst excesses of any deal this government may contemplate
Brenda’s comment is true BUT even with our first past the post electororal system it is possible to change our government which I believe is not the case with the EU.
What is nice is to see so many waking up to what the EU is all about: Control without question!!
The trouble with the centre-left is that it only plays on the left to divert attention from the right-wing.
A UK constitution is the answer if we leave the e.u
As a German I am sorry for my government. I holiday in Greece often as like many Germans I like the watersports. This shower has basically said we know u r in extreme trouble and we are going to take the piss.
I doubt that too many Germans will be holidaying in Greece. I’m determined to now.
Hi Richard,
I share you disappointment and disallusion. Given the continued influence of the neoliberalism control we have a difficult task to change this. There is the culture of contentment in the middle, erosion of social support and alienation at the bottom and continuing control at the top. When you place this against the environmental imperative we have its a significant worry.
We need help and a platform labour simply does not supply, what are your thoughts?
Regards,
John
My honest answer is I am working on them
I also have a boo to finish this week
R
You may not have to vote “no”.
There may soon be no EU to be part of.
If the idea was to cobble-up a humiliating degradation of a new government, and put national democracy in shackles, then the Greek-EU deal has certainly done that.
The trouble being: Others are looking-on and thinking “there but for the grace of God”
The Greek “deal”, and the Greek humiliation, is an EU gamechanger.
Nobody can have any doubt by now that the EU is run for, and by, Money and Germany. Everyone else are also-rans.
The next week is going to be critical. I think that even the most pro-EU country, except Germany, will be looking-on and backing away….
My considered opinion is that if the deal is done, it will be the end of the EU dream, and likely the end of European democracy (not that it is much to talk about anyway, with bought-and-paid-for “democrats” beholden to their moneyed masters.
I suppose next we’ll be treated to Harriet thinking the Greek deal terms are “very good for Europe”.
The deal foisted upon Greece is indeed humiliating for Greece and Tsipras and is akin to a suspension of the nation’s sovereignty.
However, we all too conveniently forget the the person the Greeks should be blaming is Tsipras – a year ago when Syriza won the Greek elections to the European parliament, they did so arguing that the current centre right government was over-accommodating to creditors and that austerity measures were unnecessary which would lead to economic prosperity and remain within the eurozone.
So while Germany and other EU countries have have shredded Greece’s sovereignty. lets never forget Tsipras’s economic vandalism that that led to what we have today.
Justin, what you seem to be suggesting that Tsipras, who’s been in power only a few months, is repsonsible for all the other crap supervised by previous Greek administrations. Richard might well choose to delete this post for the only description I can apply to your simplistic view – complete bollocks.
No, your comment is fair and appropriate
Amazing how narrow minded those blaming Syriza for all Greek woes are
“The complete lack of any democratic scruples, on behalf of the supposed defenders of Europe’s democracy. The quite clear understanding on the other side that we are on the same page analytically — of course it will never come out at present. [And yet] To have very powerful figures look at you in the eye and say “You’re right in what you’re saying, but we’re going to crunch you anyway.”
http://www.newstatesman.com/world-affairs/2015/07/yanis-varoufakis-full-transcript-our-battle-save-greece
Powerful interview
Had I not been busy decorating yesterday, I intended to make a comment much along these lines, Richard. What we have seen over the past few days must be the biggest advert for voting to quit the EU that I can possibly think of. So yes, I find myself in exactly the same situation as you for pretty much exactly the same reasons.
Incidentally, if you caught the interview between Mariana Mazzaucato and Otto Fischer in C4 News you’ll have seen exactly why what is going on has very little to do with economics and a very great deal to do with politics – and particularly the destruction of a radical government that might – just might – have been a success shown up neoliberal thinking for the barren waste land of human misery for the many and nirvana for the few that it is. But at least Mariana didn’t let Fischer get away with his claim that if the Syriza government had only stuck to the great “success” of the previous Greek government they would never be in this mess.
Good to see an academic speaking truth to power – a rare sight these days.
Mariana is great
I did see it
And she can more than hold her own against anyone
It seems that Yanis Farouvakis and James Galbraith’s ‘very reasonable proposal’ for rescuing Greece has worked brilliantly in exposing what the European Dream has become. Horrific that the Greek population must go through still more deprivation until this neoliberal ‘experiment’ is finally (hopefully) brought to an end … and actually the UK too.
It is arguable that the global elite have always considered the EU to be a transition organisation which would be superceded/replaced by the global Trade Deals, TTIP, TPP, TISA. Certainly, as the Greek crisis has clearly demonstrated, the Euro was a financial weapon in bringing nation states to heel and pushing for political union. ISDS in CETA and the other bilaterals will be potent in undermining national sovereignty but nothing like as effective as the ECB closing down Greek banks. TISA in particular, will facilitate the complete freedom of the financial sector to do much the same.
I fear you may be right and agree with a lot you say but if we distance ourself from Europe even more do we not open ourselves up to even more Tory abuse re civil liberties and the manufactured increase in the povety gap?
Only if you agree to play doormat. How’s the edge on your pitchfork?
This is the EU acting as a payday lender.
Maybe not. Even payday lenders make sure that their customer HAS a payday!
Is there going to be a posthumous apology to Nicholas Ridley now then?
Oh come on….
“European Monetary Union is a German racket designed to take over the whole of Europe…I’m not against giving up sovereignty in principle, but not to this lot. You might just as well give it to Adolf Hitler, frankly.”
Nicholas Ridley, 14 July 1990
well, everyone has to get something right
Thank you for this blog post. Our family, which is left-of-centre politically, is also now moving from the “yes” to “no” column regarding the UK remaining in Europe, and I know many friends and neighbours with the same reaction.
This seems to me an important story here in the UK that the papers are barely paying attention to: how the fall-out from the German-led Eurozone’s treatment of Greece is going to have a massive affect on the UK’s referendum. This is huge, and no one is paying attention.
I will be
I am also working on the alternative narrative
Richard
If TTIP is the ultimate goal, that is more than scary. We need somehow to demonstrate that people are not expendable, they are valuable and worthy. Mariana Mazzucato is fantastic but do our leaders take any notice of academics who they consider live in academia land and don’t have to make proper decisions. She demonstrates superbly how the state is the backbone of a country, taking the long view.
I am watching my beloved NHS die and the Greek people are watching their country die. Because I live in a tory stronghold, any communication I have with my MP is a road to nowhere. Time for reflection. May the force be with you.
I think one needs to distinguish between the EU, in which we need to stay, and the euro, of which Gordon Brown was correct to keep us out.
I fear that Germ,any has pushed that distinction too far
Absolutely, Richard. The demarcation between the one and the other, and indeed the ECB and Council of Europe, etc, have become entirely enmeshed and compromised as those who are trying to break Greece politically – lead by Germany – have increasingly drawn on every European institution to make sure none of them broke ranks and said or did anything that might provide some support for the Greek government.
As the hashtag that was so popular at the weekend noted, this is a coup and occupation – albeit non-military. It shows beyond doubt – as I know some have argued the fall of the Asian Tiger economies did – that there’s no longer any need to use the blunt instrument of military force to bring countries to their knees – corporate power, mainly as wielded by banking and finance will do it much more “cleanly” while making it all look the fault of the victim.
First the tax havens were occupied by the bankers
And now bigger states are
One day they will come for Germany
I have read the comments here with great interest, Richard. Undoubtedly Ted Heath mis-sold the whole concept to us in the 1970s. I am a few years older than you and I was already working as an international Purchasing Officer at that time and the Common Market appeared to be a means of simplifying trade within Europe, perhaps on a larger scale than EFTA.
It later became apparent that there was a more complex purpose for its existence – in fact I now see it as just another layer of management imposed on us by the international bankers. It is worth noting that when the Lisbon Treaty was finally signed, the deal was overseen by – guess who – Henry Kissinger of Bilderberg fame.
I do not necessarily blame Germany here, as has been said before, they are just carrying out orders.
If we choose to leave the EU then we can see how both Switzerland and Norway have handled independence, and if they can do it, so can we.
In my current world I investigate insurance and banking fraud so I have many opportunities to see first-hand just how the international banking world operates. Elsewhere above, I saw the comparison between mortgage-backed securities and the slave trade and this says it all.
Mortgage means grip of death
Like slavery then
The Germans are fair game for all that happens in Europe, but the various current “left-wing” parties throughout Europe and in the UK are both deeply compromised and accomplices in the current neo-liberalism. Greece is both the Greek people and the Greek oligarchs, those who work hard for very little, and even less security, and those who make vast profits, mostly off-shore, and squirrel them away from both the Greek government and the rest of Europe leaving the Greek people to pay their debts.
If we want to do something positive we need first to put our own house in order and prevent money-laundering through London and its satellites and create a powerful left-wing movement that can and actually will defend the interests of the people of England (and the rest of the UK – but don’t ask too much!) Don’t imagine for a second that TTIP or any other neo-liberal “international” agreement will not be signed by the UK government, that the UK government will defend anybody but its own clique. But chauvinism will unfortunately win over common sense, and blaming the Germans for everything that happens in Europe is a neat way of hiding our own government’s identical interests and policies.
It is clear to many people, suddenly, that the EU we grew up with, promoted, believed in and identified with more than with our own small nations, has been captured, like those small nations themselves, by the mighty corporate interests that are dictating how we shall be ruled in the interests of the financial giants. Where Europe stood, in many minds, as a safeguard against deluded or corrupted national government, it now stands as the main mover of legislation which is against the interests of people, implemented in despite of their will and now, even, in punishment and retribution for their resistance.
It needs to be dismantled. Details on how may take a while, but the necessity is utterly and compelling clear and urgent.
Capture is a recurring theme of this blog
Indeed, perhaps inevitably as the problem with any central authority is that it’s prone to capture – and then what do you do? Future authority appears as if it will be distributed, built upon blockchain technology http://ethereum.org/ It’s new as yet and, to our antiquated ways of thinking, alien, but I rather gather a new paradigm is developing which will render all we now concern ourselves with irrelevant.
There is a really cynical attitude, I believe, behind the unwillingness to find a progressive solution. The trauma done to Greece and its people is simply unnecessary and unjustifiable. The wealthiest countries in the world are setting a despicably low standard. It is simply Malthusian.
The position taken by official commentators is that reform is necessary and that can only be through suffering. Many intellectuals on the sidelines have discussed the ideological basis of this particular reform agenda. The history and jurisprudence of various types of debt have also been discussed. Casual observers often wrongly assume that the authority lent to the conditions and liabilities of the bailout programmes mean that the outcomes must be equitable and the deliberations completed according to sensible rational framework that is enhanced by consensus. However, the truth is rather different. And as the crisis drags on the erosion of the government’s ability to honour its civic duties and public responsibilities is destroying the legitimacy of the government to govern. There is no legal or supervisory power to regulate the decisions and assess the procedures and outcomes. There are only cumulative treaties and agreements agreed to by executives, mostly without any democratic mandate. Greece is in bandit country.
But how have so many leaders’ resistance to a clearly irrational and dogmatic logic been so weakened? Since at the least 2002 there has been gradual and progressive institutionalisation and codification of principles, which ultimately set unrealistic expectations of neutral fiscal equilibrium throughout the Eurozone economies and institutions. But, can it really be that the Finance Ministers Europe are unable to grasp the relationship between fiscal policy, monetary expansion and interest rates?
The only reason the Eurozone is not in deep deflation, given that the German economy has been set on the path of a strict policy of neutral fiscal equilibrium, is the borrowing of the debt crisis countries and QE undertaken by the ECB. To my mind what is now driving the debt crisis in Europe are the effects of convoluted debt monetisation. Guarantees by ‘creditor’ governments of the principle sums of bespoke financial instruments (‘bailouts’), provide a basis by which further debt can be leveraged, which is then officially accounted as the exclusive liability of the borrower government.
The bailouts in effect are binding financing agreements made between borrower governments and the institutions, which both codify a programme of fiscal consolidation and deliberately constrain the borrower’s access to pseudo-markets. However, the codified accounting agreement, transfers the liability of retiring toxic assets, bank recapitalisation funds and debt swaps to the borrower government. The leverage achieved is what can be considered debt monetisation, which produces secondary markets and through repayments new liquid money.
One of the effects of this long term depression is migrant labour is driven from Greece to long-term low fertility countries, that are dependent upon economic immigration to meet the costs of public services and vacancies to spur investment and economic growth.
So it is not only that the monetary expansion off-sets the effects of the fiscal tightening of the debtor country on the other Eurozone countries, but the process causes the release and transfer of assets and human capital investments from the debtor country to the Eurozone core.
It is a deeply cynical but fanatical Europeanist agenda. It forces integration via migrant labour flows and targets the sovereignty of debtor countries by destroying the governments’ ability to govern.
the EU being undemocratic and it’s members adherence to punishing, counterproductive and discredited economics are the issues threatening to destroy the European project, NOT the transfer of power from Greece to Brussels. the concession of power to a common political body was always in the pipeline, and the Euro has actually proved a very effective tool in persuading people to accept this.
Merkel is due for re-election by October 2017 and Portuguese and Spanish elections are due before then. Even if by some miracle the Greeks do not manage to throw off their yoke before the German elections the plan will for certain have been shown to have been completely unsuccessful. The French don’t like the plan nor do the Italians – (do the Irish?). Germany if it isn’t already, will by then be in a minority of one (with perhaps the Finnish and Latvians?) which is dangerous. But I cannot see the Germans in general liking their minority status and sooner or later they must realise that the Americans do it, the British do it even the Japanese do it so they too can do it! Quantitive Easing that is. Indeed they are already doing it. Just not in the correct fashion. If they get over the spectre of printing money which still seems to loom so large, they’ll begin to realise that the Germans too could be popular..
Therefore are not our efforts better directed to try to influence the Germans? Indeed we are told the Germans want the UK to remain in. But when Dave goes to Angela wanting ‘renegotiation’ she will have to offer special gifts because otherwise Dave will truthfully tell her Britain will be out (and good luck independant Scotland in the Euro!). She’ll have lost Greece in all but name, which perhaps is a misfortune, but to lose Britain will look like carelessness. Doubt that will play well with her electorate.
I would say don’t vote ‘no’ yet!
Merkel has delivered a death blow to the European Dream; all that remains is to bury the corpse. Though, in truth, we must do all we can to bring it back to life in a truly democratic form, because otherwise it will become a nightmare. At present I have no entusiasm to vote in Cameron’s referendum – one way or the other. Who knows what we will be presented with on the ballot paper! Neither Europe – Merkel’s or Cameron’s – is appealing. Nor is Farage’s UK.
I think the loan shark analogy is apt. Such lenders really don’t want their victims to pay back the original loan, they want to build up a permanent clientele of debtors whom they can continue to squeeze and control – you see people working as virtual slaves in India with no hope of ever repaying their debts. The trajectory of neo-liberalism is leading the Greeks and eventually the whole 90% of American and European people into neo-feudal corporatism.
I think Greece is being treated more like a bad bank.
After all it was initially bailed out to prevent contagion (100+ billion) rocking Europe’s biggest banks.
I’ve seen a major shift towards ‘No to the EU’ on social media and among people I’ve talked to in the last week or so. It seems to me that the left may be returning to the anti-EU position of the 1970s (as articulated in the 1975 Referendum by Tony Benn, Michael Foot etc.) I feel slightly uneasy about taking an unequivocal anti-EU stance as I worry about being lumped in with Farage etc. But on the other hand the European project is profoundly undemocratic and neoliberal. I would sign up to a federal Europe run on social democratic or socialist principles but I can’t defend the current EU any longer and so I think it will have to be a “No” for me in the EU referendum.
There is a left wing case for leaving the EU. But you won’t find Labour arguing for it. It will have to come from somewhere else.
We should exit the EU but remain part of the trading area, like Norway.
We are not in the euro.
We could exit the EU, but the trade agreements we would have to sign-up to would still include free movement across borders. Most of the “EU laws” we have enacted were issued not from the EU, but via the EU, and will still either apply, or have to be re-done.
Another aspect of EU regulation, not discussed in the press (nor likely to be) is explained in this paper:
http://scholarlycommons.law.northwestern.edu/cgi/viewcontent.cgi?article=1081&context=nulr
It’s worth a read, and its extensive references.
Then ponder TTIP and TISA…….with wikileaks available for both.
I just don’t understand why the Greeks want to be in the euro after all this. It has been a disaster for them. I guess it’s that the short term and medium term pain would be too great. The drachma would be devalued, they would have to pay their EU loans in euros. But maybe they could just default? They are heavily dependent on importing a lot of stuff, like fuel, the costs of imports would rocket. But in the longer term exports would rise because of the low value of the drachma. Greek goods would be cheap.
If the EU would allow any other EU member to trade with them….this whole episode has rapidly descended into a “playground bully” scenario.
I have recently been reading a book of which I chanced to pick up a second-hand copy – The Greeks: The Land and People Since the War by James Pettifer. I thoroughly recommend it to anyone who wants to understand the current situation (which I have come to conclude must exclude the lending politicians and officials of western Europe). It was written in 1993 – before Greece joined the Euro but after it joined what was then the EEC. It shows how all the problems, political, economic, institutional, social that have now come to a head were fully apparent even in 1993 and it explains the roots of them in the turbulent and suffering (even if sometimes self-indulgent) history of modern Greece.
Glad you have finally woken up Richard, and many who call themselves ‘left’ are now similarly turning, though need to be more definitive about where they do stand on this.
We need to work for a No to EU vote, but be ready then to make sure that things then go in our direction, as in the 1945 shift. Because the transnational financial services industry is certainly thinking ahead to try to ensure that they maintain control.
I think you are making a mistake on our order of priority; the transnational financial industry (TNFI) is alive and flourishing, and well ahead of us, and Europe is a relatively minor priority given the existing role played by several members, in particular Luxembourg. In any case most critical laws have to be ratified by the individual countries parliaments to be applicable.
The main prime movers in the TNFI, who also give its manÅ“uvres “credibility” are a group of states in the USA with strong links to off-shore tax and legal havens, but who are both tax and legal havens in their own right in spite of efforts by the US “Internal Revenue” AND, perhaps the worst, is the nebulous “city of London” i.e. the financial “industry” loosely based on London but which operates through all its special “protectorates” (and in a completely dematerialised world in the ether) – giving them legal and political credibility when its suits the London government, but claiming their independence, all the better to act outside international and UK domestic law. France has a similar but much more limited role based primarily on its ex-colonies.
Opposing the current form of the EEC is perfectly reasonable but will not change much for you in the UK or the UK’s almost total, but very cunning play in this nether-world of “international” finance. Oppose specifics in the EEC and push for greater power for its elected representatives… by all means, but you miss the point of who is running the show behind the scenes – the junkers of this world operate far more through London and its satellites than Brussels. In any case, as an example, HSBC, under US legal surveillance and pressure, is apparently thinking of delocalising… to Hong Kong not Brussels… Blaming Germany and/or France is a chauvinistic cliché encouraging you to march in lock-step with international finance (by not reforming the UK).
As an interesting, relevant aside, a recent paper from the IMF suggested that the relative size of a developing country’s finance industry could well have a negative impact on that country’s growth as a whole beyond a certain point in its development, resulting in the finance industry become a “succubus” (my choice of term) for that country as a whole leading to higher unemployment and less than optimum deployment of that country’s resources – I see an interesting parallel with post-Thatcherian Britain and the present state of the UK’s outlying counties!
http://www.abc.net.au/radionational/austerity-comes-to-australia-lessons-from-the-eurozone/5684176
From the Yanis Varoufakis interview with Australian TV:
“Why this penchant for austerity?”
“The intellectually curious cannot, at this juncture, fail to ask: if austerity is a foregone disaster, why is it so popular amongst conservative governments? The answer lies not so much in the austerity measures that they adopt but, rather, in those which they shun.
“For instance, if the Australian government wanted to slash the federal deficit, why did it not think of culling the factor price-distorting fuel subsidy to miners and farmers, which costs Canberra $7.5 billion annually? How about the private health insurance subsidy that could have saved the government $7 billion every year, some of which could be spent on public hospitals without any net loss to health care provision? Why abolish the $5 billion carbon tax? Indeed, why keep the Howard government’s tax cuts, which were responsible for the increase in public debt as a result of the faulty assumption that corporate and capital gains taxes would pay for them ad infinitum?
“The obvious answer is that austerity was never about tackling public debt. It was not even a political campaign to end the ‘culture of entitlement’. In the UK, in the eurozone, and now in Australia, austerity is, and always was, a thinly disguised campaign of invoking fiscal prudence and public virtues in order to indulge private vices and redistribute entitlements at the expense of the majority.”
Still speaking truth to power, it seems to me.
And me too
His time may not have come as yet
Sometimes something is so self-evident to me that I forget about it. Of course, you too!