(en) France, Alternative Libertaire AL #253 (Oct) - Economy:
The truth about the Greek debt (fr, it, pt) [machine translation]
Written by the Committee for the Abolition of the Third World Debt, this book provides a
crucial insight into the springs of the current Greek debt crisis, in the form of
alternative audit. ---- The Commission for the truth about the Greek debt was created
April 4, 2015, to conduct an audit at the request of Zoi Konstantopoulou, coordinated by
Éric Toussaint, doctor in political sciences. Note that previously Éric Toussaint had
considered the debt of Ecuador. An audit is an obligation under EU law No. 472 of 2013.
Obligation that has been neglected by previous Greek government and the Troika. ---- Let's
start with the beginning. In 1980, Greece's public finances are in all fields similar to
those of European countries. Public spending proportional to GDP are even rather lower,
except in one area: military spending. But it was a European order to strengthen the
defense of Greece, which is strategically located southeast of Europe. It is between 1995
and 2009. The question that then arises is: why has Europe does not participate in these
expenses? They amount to 40 billion euros ...
Capital flight
The other point is capital flight and the loss of tax revenue linked to it: 30 billion
euros between 2004 and 2009. What is added the non-payment by the charges employers
social. The entry of Greece into the euro area has the effect of increasing Greek private
debt, and I will not dwell more than our authors on makeup accounts through Goldman Sachs.
This book highlights the snowball effect, which increased the debt, according to the high
cost of interest charged to Greece. Even if budget deficits were important, they were not
the main cause of the increase in debt. Public expenditures were lower in proportion to
those of eleven other countries in the eurozone. Yet this is the reduction of these
expenses plans of "helpers" imposed as a condition to payment of the money to "bailout".
Money that has only served to bail out banks.
An important part of these so-called "reforms" the result of a neoliberal ideological
option whose effect was the entry of the country into recession, the longest ever for a
European country in peacetime. This is not primarily a social and political crisis facing
Greece is a banking crisis, and a people's control over the banks could have prevented.
Bank rescue plan
Would have required at a discount of Greek debt from that time. Creditors do not hear of
it. The result was an increase in Greek debt, which rose from 299 billion to 355 in late
2011. The greek and European banks threw the securities they held on the market, forcing
the state to buy the public debt, with the assistance IMF and ECB. The country plunged
into recession, and no equilibrium in budgetary objectives or on the tax revenue was not
reached. On October 26, 2011, the troika decided to support a new program of 130 billion
euros. He was then offered a discount of 50% of their shares to private creditors. While
Greek banks were repaid in full, government agencies and small investors suffered heavy
losses, even causing suicides.
During the period of the "rescue of Greece" (2010-2014), these alleged plans support for
Greece were really only a bailout of banks and private interests. Around the world, the
private financial sector sovereign debt used to transfer the costs of the 2007-2008 crisis
on the public sector. Thus, I quote the book: "The loans from the Troika far from being
intended for the payment of wages and pensions, have instead helped compensate" holdout ",
many of whom were known to be vulture funds by reimbursing on the basis of the nominal
amount. "What was the role of the ECB (European Central Bank)? It bought Greek debt to
less than its nominal value, which does not prevent him to demand repayment at nominal
value plus interest. She spent EUR 40 billion to purchase securities with a face value of
55 billion euros. And also, she received 298 million of Greece interest for its loans. The
three actors protocols imposed on Greece are the ECB, the European Commission and the IMF.
Hence the term troika. In reality these agreements can only aggravate the debt of Greece,
for the benefit of its creditors, which is more by paying most of the money borrowed from
financial institutions, implementing the privatization process, in addition, at rates abusive.
Cuts
The result of the neoliberal management leads to economic recession and a dramatic social
regression. But the troika she will learn from it and change? From 2010, the IMF noted the
effect the austerity policies have a disastrous effect on investment. There was a constant
underestimation of recessionary effects. There is every reason to assume that this is the
result of deliberate choice in favor of creditors, sink and Greece to the present but also
invalidate the future.
The pseudoréformes labor law resulted in violations of the right to strike, explosion of
unemployment, the minimum wage level was reduced is below the poverty line. The crisis
specifically affects women and migrants, forced to accept part-time, and allows the
dismissal of pregnant women.
The cuts in the health sector with restricted access to health care dramatically in
violation of human rights, such as cuts in the buget of Justice have made access to the
problematic law.
Interference creditors
It is possible to take legal action to repudiate debts illégimes, hateful, illegal or
unsustainable. This is to show the bad faith of the creditors in the treaties imposed on
debtors. (Article 26 of the Vienna Convention). The interference of creditors resorting to
coercion, violating the Constitution and sovereignty of the country is illegal. The stress
itself is a ground of invalidity (Article 52 of the Vienna Convention).
The second article concerns the unsustainable debt. The state of necessity in which Greece
is located is obvious. And it is an open right to non-payment of debt: "No state is
required to perform in full its financial obligations if it compromises the performance of
essential public services. "
All these violations of human rights show that this is indeed the case: public services
are not insured, and they must be, primarily to the payment of debt. It is clearly
demonstrated in this book that the essential interests of Greece are threatened by an
impending danger. All Europeans in good faith should therefore require the cancellation of
Greek debt.
France (Paris G-Northeast)
http://www.alternativelibertaire.org/?Economie-La-verite-sur-la-dette
