Zimmer-Papadimoulis: Merkel’s toxic medicine. Commentary in “Neues Deutschland”

 

 

 

http://www.neues-deutschland.de/artikel/959285.merkels-giftige-medizin.html (in German)

Commentary. Gabi Zimmer, Dimitris Papadimoulis

Since May 2010, the euro area Member States, ECB ad IMF have been providing financial support to Greece through an Economic Adjustment Program in the context of a sharp deterioration in its financing conditions.

The financial package that was put on the table together with the MoUs started a downward spiral of pension reductions, wage cuts, higher taxes, layoffs and privatizations, preserving the interests of the richest.

Therefore in Greece we experience a social devastation caused by over half a decade of austerity measures. Almost a third of the population lives below the European poverty line. Greece’s social safety net has collapsed.

SYRIZA stressed from the outset that the TROIKA “prescription” for Greece was wrong. Austerity policies haven’t led to healthy economic growth as promised. Today, more and more analysts, scientist and politicians and up to admit that the last five years were a series of policy mistakes: Austerity when economies needed stimulus, paranoia about inflation when the real risk is deflation, and so on.

After five years looking into the abyss, Greece is on the verge of taking a big step forward.

We call on Greeks to give for the first time, openly and without hesitation a large, undeniable electoral win for SYRIZA that will secure a clear majority in parliament. We don’t ask for a majority out of arrogance, but for a majority to achieve the necessary changes. We also call on Greeks to take the issue of democracy and change into their own hands, to take their government by the hand and help it when things are tough. Not to assign the work and then wait on the side exhausted.

SYRIZA wants the EU to abandon crippling austerity policies in favor of quantitative easing and a growth-led recovery.

SYRIZA is demanding a negotiated solution. It has conjured up the example of a European debt conference to wipe away a portion of the debt, as happened with Germany in 1953. We want to get relief on a large part of debt and repay through economic growth, rather than from budget cuts. We propose a European new deal backed up by an investment bank; an all-out war against the tax avoidance; an emergency employment program; a raised minimum wage and the restoration of collective bargaining.

The ruling “New Democracy” party and its allies, are trying to portray the election as a referendum on an exit from the euro. Nothing could be further from the truth.

SYRIZA has no intention to make unilateral moves. Actually, we will do everything in our power to keep Greece in the EU and the euro zone. But we have to keep in mind that historically, the solution to high levels of debt has often involved writing off and forgiving much of that debt

Therefore, we believe that we’ll find a solution on debt relief with troika because it is in everyone’s interest.

In the meantime, our first priority when in power is to address the humanitarian crisis. Then we’ll carry out an economic recovery plan and deep reforms in the management of state and public administration that will lead to economic growth and job creation. We will introduce a simple fair tax system and we will tackle “oligarchs’ ” grip on the country’s economy.

Since September, we have submitted a self-powered financial plan; fully costed that doesn’t create deficits and debts.

Our campaign message is “Hope is coming”.

It’s true. Winds of change are blowing and the peoples of Southern Europe and their sovereign political forces are ready to change course and advance towards a Europe with social justice and popular sovereignty. Political changes are not just happening in Spain, the same holds true for Portugal, Italy and Ireland.