Showing posts with label Tsipras. Show all posts
Showing posts with label Tsipras. Show all posts

Monday, 13 July 2015

Saturn Eats His Own: Winter Has Come to Europe


"There was once a dream that was Rome, you could only whisper it. Anything more than a whisper and it would vanish. It was so fragile and I fear that it will not survive the winter."

The fictitious (as far as we know) words of Emperor Marcus Aurelius in Ridley Scott's 2000 film Gladiator. The aged philosopher-king was bewailing the slide of the ideals of the Roman Republic into the hands of greedy and corrupt nobles and politicians.

It was perhaps  an apt movie to emerge in the Millennium Days. Alongside a decade long boom sustained unsustainably on the debts of the poor, the 2000s saw the rise of the Euro, the international currency adopted by 19 of the 28 member states of the European Union - the first such since Marcus Aurelius' Imperium introduced the denarii as the single currency from Bagdhad to Newcastle. It would of course have been 20 states had Tony Blair and Nick Clegg had their way - but we have old prudence himself, Chancellor Gordon Brown, to thank for keeping the UK out. He was content to hand us over instead to the deregulated City financiers in London and our Eurozone membership (as distinct from our EU membership) was kept on indefinite hold.

The Euro was  seen as a huge step forward in the "ever closer union" of Europe. A single unit of exchange, binding economies as diverse in size, social objectives and wealth distribution as Germany and France, Portugal and Cyprus and several of the until recently Communist states of eastern Europe. This would be Europe's dollar, a standard to solidify the Continent's economic power around so that it could compete equally with the declining USA and more importantly the rising superpowers of China and India.

Basic economics however cautioned from the outset against any such optimism. With such a wide range of economies, the Euro would always struggle between rich and poor, between Governments keen to intervene and influence economies to the benefit of their citizens and those favouring laissez-faire market economics. As with the entire banking sector, it was and remains adherents of the second type who control the European Central Bank, the major economies of the EU and the IMF. Consequently, their view has repeatedly prevailed in terms of Eurozone policy.

The impact of this has been manifest on the smaller, poorer economies of the southern states. Portugal, Spain, Italy, Cyprus and Greece have all struggled. As members of the Eurozone, unlike the UK, they have ceded their fiscal autonomy to the ECB. Whereas in the past they could print or borrow money in their own right, now they are at the behest of the ECB and when it is committed to austerity and market economics, they have in the end no choice but to comply, regardless of the consequences on their societies.

And so we see this week, the rich states of the north combining under the ultimate neoliberal standard bearer of Angela Merkel to "waterboard" (as one EU official gleefully put it) the Greek Prime Minister into surrendering huge swathes of his nation's wealth to privatisation and at the same time increasing sales tax and cutting pensions, both measures which will directly harm millions of the poorest Greeks. The EU will put up tens of billions of Euros in bailout money, but this will go to pay Greece's debts to German and other EU banks, not to aiding any recovery in the Greek economy.

The corporate thieves in charge of the EU have had their way: a democratically elected left wing government, having had the temerity to stand up to the bully boys of the neoliberal establishment, has had the legs cut from under it. Already, they are looking to install a rightwing regime in spite of the conservative Nea Demokratia's trouncing at the polls. Syriza, once the hope of hundreds of millions across Europe, is now divided and its party banners set on fire by former supporters on the streets of Athens this evening. Spain has been duly served a warning should it be so impertinent as to vote for the wrong people and elect Podemos in its elections in November.

So what remains of the great European Ideal?

Established by the Treaty of Rome in 1957, once it was to establish a harmonious, prosperous union across a Continent previously riven by endless centuries of war, almost since the days of Marcus Aurelius himself. Alongside a single market, social programmes would share wealth and protect ordinary people from big business taking advantage of them. Employment laws, health and safety standards, environmental protection, social benefits and consumer rights would be equalised so that citizens were empowered. The European Parliament would speak for them and a democratic family of nations would flourish, a beacon in a troubled world.

How far removed from that we are tonight. The dream has become a nightmare as policy imposes real hardship - hunger, homelessness and despair - on European citizens. The suicide rate has risen sharply in Greece with one university professor so distressed that he died by setting fire to himself in Syntagma Square in a desperate plea to the European leaders to give relief to his nation. But he was of no consequence to the psychopaths in suits.

In the UK, we face a referendum on whether or not to remain in the European Union, possibly as early as next autumn and by 2017 at the latest. The Cameron Government is posturing that it will get a new deal for Britain in Europe - one which, for all the rhetoric, will simply strengthen the power of the rich over the poor in the our country. For Cameron plans to get opt outs on the limited protections in the workplace that the EU even now does guarantee - against long hours, against discrimination and in favour of some basic employee consultation on matters such as redundancy. These are the things the Farage and Cameron want to remove: they will be quite happy for big business to continue to rob the taxpayer and profit from workers and customers alike.

Because of this, Greens and many others on the Left have to widely varying degrees of enthusiasm (or reluctance) favoured staying in the EU. But now, as we see the European Union's mask slipping and its mouth gaping like Saturn's rictus as he devoured his own, it is time to think again.

We share none of UKIP's anti-migrant agenda and so we hesitate to stand on the "Brexit" side of the debate. But ask ourselves, when we talk of a social Europe, where is it? And what possible prospect is there that we will ever see it?

Goya's Saturn, god of Rome, eating his children
Is an institution that not only abandons but actively preys on the weakest, an institution whose Ideal seems more wedded to economic eugenics than democracy, an institution that ransacks the common wealth of an impoverished society - is it really one that we can campaign to remain part of? For what possible reason?

The European Parliament, perhaps the one crumb of progressive hope in the whole rotten edifice, is as emasculated as ever. We have seen this with the secrecy around the TTIP negotiations - yet another measure that is about to offer all of us up to the wolves of Wall Street and their global buddies.Why would any socialist, progressive, Green or human being wish to continue to be part of it?

I write this with much sadness. All my life I have dreamt of a genuine European confederation, a union of equal nations and equal peoples, finally putting aside the conflicts of the past. Our Continent, for all its claims of birthing democracy and industry, has also been the locus and cause of the worst wars by far in human history. If there was ever to be any prospect of ending that appalling cycle, perhaps the "ever closer union" that was the European dream would have provided it.

But with Greece now probably on the precipice of social conflict akin to the break up of Yugoslavia and several other states facing similar fates, such a Europe is, as perhaps it always was, a dream. In its place, we face instead the nightmare of neoliberalism run amok.

We can play no part in it. What we seek is not on offer. If we are to ever show another way, another Europe and one day another world, is possible, perhaps we do indeed need to leave this Guild of Thieves.

Sunday, 5 July 2015

Greece: A Vote for All of Us

Greece has voted decisively to reject the latest demands from the European Union for austerity economics.
The Hellenic people have today dealt a huge blow for all Europeans against the corporate interests that over the last 8 years have foisted the political choice of austerity economics across the Continent. The 60%-plus vote to reject the latest demands for massive cuts in public services and welfare to the poorest represents a major victory in the struggle to reverse the "mainstream" view that the monetarism first adopted by Thatcher and Reagan in the 1980s should be the default form of orthodox economics. It is a massive vote of confidence in the Syriza government and the stewardship of Prime Minister Tsipras and Finance Minister Varoufakis, but it leaves huge questions for them to tackle in terms of next steps. For although Greece has spoken loudly and clearly, the anti-democratic forces in the European Central Bank and the IMF, backed by the neoliberalism of German Chancellor Angela Merkel, are unlikely to deviate from their obsession with reducing the public sector and increasing the wealth of the rich across the Eurozone. The economics of austerity will not go quietly or quickly.

This is a particularly pernicious form of political economy - it holds that balanced budgets are key for governments, whose involvement in society should rarely extend beyond basic policing and the military (although in practice it actually extends to providing subsidies and  handouts to the big corporations that fund our political masters, either via bailouts viz the banking system or "private finance initiatives" and outsourcing of services such as health and education at criminally high costs to the taxpayer).

Syriza's Varoufakis and Tsipras
 In this scenario, there is a fetish about reducing the deficit even when sucking money (and demand) out of a becalmed economy will simply lead to a downward spiral with huge costs to the lives of ordinary people. Its proponents however claim that, in the long-run, a harmonious equilibrium of supply and demand will be reached - although this is somewhat incredulously to be determined by the mystical invisible hand of the market rather than any socially-conscious intervention by humans. We are to serve economics, it seems, not the other way round.

The counterpoise to this - the investment-led approach of Keynesian economics - is somewhat more humane (albeit not necessarily an exclusively socialist response). It sees social objectives, primarily the minimisation of unemployment, as a key objective. Here, Governments will borrow or even just print new money to keep demand going in the economy, keeping activity moving so that people stay in work - this reduces the cost of out of work welfare and increases tax take, so that in time, if useful, the deficit can be reduced or eliminated without ruining the lives of ordinary people. As Keynes said of those who would leave things for the market to somehow work things out in the longrun, "In the long run, we are all dead." Economics should serve society; social objectives should be their sole purpose, not the enrichment of an ever -smaller circle of owners and shareholders.

However, the neoliberal elite who came to dominate our political landscape as well as the economy during and since the 1980s have made several key changes that undermine the potential for investment-led economics. They removed many of the controls on money and globalised the movement of capital; and they gave banks the right to create new money out of nothing - a ludicrous and highly dangerous arrangement that led to the 2008 crisis and continues to this day.

And into the midst of this, although Britain is outside it, the Eurozone came into being and countries like Greece surrendered their economic and monetary independence to the European Central Bank. This now determines the economic policies not only of Greece but in effect all Eurozone states. And with its decisions in the hands of austerity-obsessed bankers whose sole objective has been to increase the power and wealth of the elite, the social needs of the poor in Greece, or Spain or even Germany have been of no concern. Hence their belief that Greece should cut and cut and cut and simply keep on bleeding.

In this context, we have seen Greece previously be forced to accept an unelected Prime Minister to impose the diktats of the ECB on its people. This was being openly contemplated again in Berlin last week as Merkel and her gang felt bullish about a Yes vote in the referendum cutting the legs from under the elected Syriza government. This is the same mindset that reportedly led to some bankers allegedly opening a book on whether or not there might be a military coup d'etat to "solve" their problems with the irritant of democratically elected Greek politicians not going along with inflicting ever more misery on their people.

Greece has said no to the austerity that is at the cold heart of Europe now. But the only real option for the Hellenic democracy is to now leave the Eurozone as quickly as possible. With the drachma restored, they would be free to adopt an investment-led recovery, restore their battered public services and revive their economy. In doing this, they would be leading the way for democratic forces across Europe to rise and turn our fractured societies away from the austerity that has left Britons to choose between heating and eating, Spaniards to watch their health services crumble and youth unemployment soar, and Greeks to see their country unravel around them, their young and their rich taking flight abroad.

For some of us on the progressive left in Britain, until now reluctant supporters of the European Union as at least some form of minimal defence against the corporatocracy, the treatment of Greece (and of Portugal, Spain and Italy) demands we revisit our views ahead of the British referendum. The Europe we seek, one that puts people and planet before the profit of big companies and the demands of our elite, is not on offer.

It may feel uncomfortable to be on the same side of the fence as the likes of UKIP, but is it any easier standing alongside the three pro-EU, pro-TTIP, pro-austerity parties coalesced under David Cameron? At the very least, the debate must be had - why should any progressive wish us to remain part of this "ever closer union" that would willingly, even enthusiastically, destroy one of its own? Can this project be saved from itself? How do we get a social Europe genuinely on the agenda? Or do we need to break away to come back together in something more constructive and sustainable?

The No vote for the Hellenes is no negative result. It is a terrifying but optimistic vote that says society must be for everyone. That the collective need, the common good, must come before the apologists of robber-capitalism who hold power in the boardroom, banks and Cabinet offices in capitals across the European Union (including London). It is a line in the sand, but will need to be the first of many.

It is a vote for a future that is about people, not profits.

From the birthplace of democracy, it is a vote for all of us.

Athens was the birthplace of European democracy: this ballot said "No" to Themistocles in a vote 2,400 years ago.