The
‘agreement’ that the eurozone countries and the Troika forced on
the Greek government during the “night of shame” strangled space
for a progressive project. It is not only dangerous for the Greeks,
but for citizens all across the European Union.
There
are many regrettable outcomes of the ‘agreement’ forced on the
Greek Government during the longest ever Euro Summit on 12-13 July
2015, or the European Union’s “night of shame”. On top of harsh
austerity measures and further attacks on social rights, a promising
alternative has lost tremendous ground. In the Brussels institutions,
there is a sigh of relief, as the first real obstacle to the strand
of undemocratic, neoliberal European integration in response to the
eurocrisis since 2010, has now been removed. It was not only the
Greeks that lost out, but all Europeans looking for alternatives to
austerity that make better economic and social sense.
As
progressive forces across Europe are now considering next steps, one
aspect should be highlighted: the anti-democratic nature of European
Monetary Union (EMU) – with the actions of the European Central
Bank and the eurogroup (the national finance ministers of the
eurozone) as key examples – and the fact that this has become the
cornerstone of European integration. That night, the eurozone
countries and the Troika were not merely being cheap on money, they
were acting on behalf of a European Union that leaves no space for a
progressive project.
Our
co-operation?
Ahead
of final phase of the negotiations on an ‘agreement’ between the
Eurogroup, the Troika, and the Greek Government, German Chancellor
Merkel said it would have to be ensured “that the advantages are
greater than the drawbacks for the future of Greece, as well as for
the Eurozone and the principles of our cooperation.” The
negotiations finished with full submission of the Greek Government to
the demands of its creditors. The creditors forced their will by
squeezing the liquidity of Greek banks, and ultimately by threatening
Greece with expulsion from the Eurozone.
While
Merkel’s claim that this episode will strengthen the principles of
economic and monetary cooperation may seem out of place, given how
Greece was coerced into ‘co-operation’, her words are in fact
straight to the point. That night a key battle in the fight for
Europe took place. With the weight of a unified, determined European
political and economic elite, an ever growing EU rule book on the
‘correct’ economic policy, and the manifest power of the
euro-construction all pitted against a small country in a deep
economic crisis, the result was a given.
Their
Europe
Confronted
with excessive force, the Greek Government suffered total
humiliation: a week after winning overwhelming popular support for
rejecting the creditors’ harsh austerity demands, it had to swallow
even harsher demands in order to prevent the immediate collapse of
Greek banks and to open the door for negotiations on a new loan
package, a third memorandum. These negotiations hold no promise to
alleviate the crisis in Greece. Even if the next memorandum did
include debt relief for Greece, it is widely predicted that any deal
would be conditional upon further austerity and the roll-back of
social rights.
The
determined use of sanctions and threats against the Greek Government
should come as no surprise to those who have followed the response of
the European Union to the eurocrisis, which had its roots in the
financial crisis and the divergence created by the common currency –
with winners and losers. Yet it was immediately spun as a blow
created by lavish public spending, overly generous social welfare,
and ineffective labour markets. The road to a full-frontal attack on
welfare and labour rights across Europe was paved by the concerted
efforts of governments, the mass media and big business lobbies.
Exploiting
the crisis
For
five years now, attempts to strengthen the Economic and Monetary
Union have focused on creating a web of bureaucratic rules and
mechanisms to force austerity policies and to attack social rights.
The Troika (officials from the European Commission, the European
Central Bank, and the International Monetary Fund tasked to force
austerity and neoliberal reforms onto Greece, Ireland, Portugal, and
Cyprus in return for loans) is but one of the new tools that were
created. This was always the EUtopia of big business groups and their
neoliberal allies in the EU institutions, who saw opportunities in
the crisis. This explains their refusal to acknowledge the complete
failure of the EU-driven austerity policies. Even the dramatic
contraction of the Greek economy of a full 25 per cent since 2008
during brutal austerity measures never made the protagonists think
twice.
During
a Brussels conference in January 2011, former EU Commissioner Mario
Monti summarised the thinking in these circles by enthusiastically
welcoming the first major steps towards stronger EU ‘economic
governance’: he said, “Thank you, Greek crisis”.1 At that time
Monti was advising the European Commission on the future of the EU
Single Market, as well as serving on the Board of International
Advisors of Goldman Sachs. In November 2011 he would be catapulted
into power as unelected Prime Minister of Italy, after the ECB
effectively toppled the Berlusconi Government, in order to implement
austerity and reforms as demanded by the EU institutions.
Monti’s
gratitude and that of the rest of the political and economic EU elite
would not be disturbed by the collapse of the Greek economy that
unfolded at the time, quite the contrary. In September 2011, he
expressed awe at the achievements of the common currency: “Today we
are witnessing – and it is not a paradox – the great success of
the euro and the most concrete manifestation of this success is
Greece, and forced to give value to the culture of stability which is
transforming itself.” Monti chose his words with care: “giving
value to the culture of stability” sounds much nicer and more
civilized than “imposing harsh austerity and neoliberal reforms”.
The
euro as a political weapon
But
Monti's blessing was a curse for the Greeks. Already in February this
year, in response to the left wing victory in Greece's January
elections, the European Central Bank had made it more difficult for
Greek banks to get credit – a move it did not make under the
previous government under similar circumstances. This showed how the
ECB, theoretically a neutral actor, was making highly political
moves. In the end, the ECB capped emergency liquidity, forcing the
Greek Government to cut access to money, and made the clock tick
towards a euro exit. With empty banks, there would be no escape from
introduction of a new currency, and as the Greek Government had made
no preparations whatsoever, the result could only be chaos.
For
all of the EU, the euro has become the main engine for integration,
and one that is both authoritarian and neoliberal.
A
sigh of relief from business
A
Greek exit could have thrown this “neoliberal integration by
currency” into doubt. For that reason, big business lobby groups
were biting their nails in the course of the negotiations. They
feared Greece would win exceptions at the negotiating table that
could halt the sweeping pro-business reforms set in motion by the
crisis – and maybe set precedents for other eurozone countries. In
a statement issued on 8 July, a few days before the agreement was
made, BusinessEurope urged that the Greek Government come up “with
credible, precise proposals for growth enhancing structural reforms”.
And as so often before, the group argued that the “outcome of this
crisis should be a strengthened Economic and Monetary Union”.
On
the day of the deal, BusinessEurope was quick to respond with yet
another call for a “stronger Economic and Monetary Union and
improved governance and convergence in the European Monetary Union.”
Not
our Europe
The
result so far of the Greek rebellion against the neoliberal diktats,
are utterly timid, if not outright depressing. With no plan B, the
Syriza Government was an easy victim. For the architects of a
neoliberal European Union, this could provide new impetus for ‘their
Europe’. Already, the “five presidents”, that is, Juncker of
the European Commission, Tusk of the EU Council, Schulz of the
European Parliament, Draghi of the European Central Bank, and
Dijsselbloem of the eurogroup – all of whom were part of the attack
on Greece – have tabled a master plan for the next steps, and they
are likely to discover new opportunities for an expanded neoliberal
project.
This
poses a fresh challenge to social movements and other progressive
forces across Europe. The task is not just to act in solidarity with
the Greeks fighting against austerity and for social rights, but to
fight a flawed model of undemocratic, neoliberal European integration
as a whole. While the “night of shame” that humiliated Greece was
a powerful blow to progressive forces, to resist the closing down of
democratic spaces and economic alternatives on the continent will
require concerted pan-European citizen action.
Source:
Greece automatically gives up its freedom by begging for more loans from corporatistas.
ReplyDeleteThe greek government willingly sacrifices freedom of Greek citizens because it is just as corrupt as every other government groveling for loans so it can do thing the people don't want.