PASOK ―today under the leadership of George Papandreou (offspring of the Papandreou dynasty of the centre-"Left") was the "perfect" choice for the elites, as this party has governed Greece, in turns with the Karamanlis dynasty of the centre-Right, during the entire post-junta period that followed the fall of the military dictatorship in 1974. In fact, these two dynasties, initially under the tutelage of the British and then of the US elite, and, lately, under that of the transnational elite, have been the main players of the Greek political scene for the entire post-war period, which began with the end of the Greek Civil War in the late 1940's. However, the very fact that PASOK managed to gain a comfortable parliamentary majority (thanks to an electoral system that blatantly favours the first party in number of votes), in reality, sowed winds which, most likely, will, soon, reap whirlwinds. This is because the bipartisan system in Greece is not based on any solid foundations. An indication of this is the fact that, while in Europe, neo-liberal parties alternate with social-liberal ones (which have, long ago, abandoned even the socialist rhetoric) on the basis of a clear agenda that summarises the demands of neo-liberal globalisation, in Greece, both parties, and especially the social-liberals, systematically hide their true identity! When therefore, the true identity of PASOK is being revealed today, following the harsh measures it is introducing to deal with the crisis, its electoral base is in fact being dismantled and the result may well be the future dissolution not just of PASOK but of the entire bipartisan system in Greece. It is clear that the same, more or less policies, with perhaps small variations on the actual fiscal measures to be introduced, would have been adopted by whatever party was elected, given the main goal imposed by the European Monetary Union (EMU) on all member-states for the reduction of the public debt to meet the Maastricht Treaty criteria. The "choice" given by the elites to the Greek people was clear: either to re-elect the previous governing party (New Democracy) with an explicit new mandate to implement the savage cuts in social spending suggested by the EU commission and international organisations, or to elect a party (PASOK) which was in fact deceiving the electorate that it could somehow avoid the suggested savage cuts ―in other words, a party that was, in fact, relying on its socialist name and its control of trade union bureaucracies to pass exactly the same policies! The method has been, after all, successfully tested for many years by the British Labour party, with the full support of the elites in Britain. It is therefore obvious that PASOK aspires to play exactly the same role now, with the full support of the local elites, which played a crucial role in its rise to power.
PASOK ―today under the leadership of George Papandreou (offspring of the Papandreou dynasty of the centre-"Left") was the "perfect" choice for the elites, as this party has governed Greece, in turns with the Karamanlis dynasty of the centre-Right, during the entire post-junta period that followed the fall of the military dictatorship in 1974. In fact, these two dynasties, initially under the tutelage of the British and then of the US elite, and, lately, under that of the transnational elite, have been the main players of the Greek political scene for the entire post-war period, which began with the end of the Greek Civil War in the late 1940's. However, the very fact that PASOK managed to gain a comfortable parliamentary majority (thanks to an electoral system that blatantly favours the first party in number of votes), in reality, sowed winds which, most likely, will, soon, reap whirlwinds. This is because the bipartisan system in Greece is not based on any solid foundations. An indication of this is the fact that, while in Europe, neo-liberal parties alternate with social-liberal ones (which have, long ago, abandoned even the socialist rhetoric) on the basis of a clear agenda that summarises the demands of neo-liberal globalisation, in Greece, both parties, and especially the social-liberals, systematically hide their true identity! When therefore, the true identity of PASOK is being revealed today, following the harsh measures it is introducing to deal with the crisis, its electoral base is in fact being dismantled and the result may well be the future dissolution not just of PASOK but of the entire bipartisan system in Greece.
It is clear that the same, more or less policies, with perhaps small variations on the actual fiscal measures to be introduced, would have been adopted by whatever party was elected, given the main goal imposed by the European Monetary Union (EMU) on all member-states for the reduction of the public debt to meet the Maastricht Treaty criteria. The "choice" given by the elites to the Greek people was clear: either to re-elect the previous governing party (New Democracy) with an explicit new mandate to implement the savage cuts in social spending suggested by the EU commission and international organisations, or to elect a party (PASOK) which was in fact deceiving the electorate that it could somehow avoid the suggested savage cuts ―in other words, a party that was, in fact, relying on its socialist name and its control of trade union bureaucracies to pass exactly the same policies! The method has been, after all, successfully tested for many years by the British Labour party, with the full support of the elites in Britain. It is therefore obvious that PASOK aspires to play exactly the same role now, with the full support of the local elites, which played a crucial role in its rise to power.
Countries all over the world are still struggling to emerge from the worst global recession since the 1930s. Yet this crisis should be seen as an "opportunity for deep changes to make the economy we both, Greeks as well as Europeans, can be proud of," George Papandreou told Parliament's Special Committee on the Economic, Financial and Social Crisis (CRIS) on Thursday. Addressing a public hearing on European economic governance and EU tools for economic and social recovery, the Greek prime minister explained that Greece, in the throes of an "acute crisis", was introducing the "most difficult measures since World War II to put our house in order". Despite this, Greece was not asking the EU for help, pointed out CRIS chair Wolf Klinz (ALDE, DE), who referred to the EU finance ministers' decision last Tuesday to back the "very challenging austerity measures" put forward by Athens. "We are not looking for a scapegoat nor asking for help to live from the wealth of others but what we do need is strong political support to make all these reforms and to make sure we will not have to pay more than is necessary," said Mr Papandreou. He added that Greece needed "to be able to borrow at rates which are normal". Calling for an end to "opportunistic speculation", he also warned that if the Greek government kept borrowing at such high interest rates, it would not be able to sustain the deficit reduction. "We are really shocked that those who had to be bailed out with taxpayers' money used the first opportunity to speculate against the euro to make a profit," said Wolf Klinz to wide applause. "We need more Europe rather than less Europe," stressed Papandreou. The time had come "to put the loaded gun on the table", to make sure the markets would respond positively. In this context, Greece could provide an opportunity to deal with the issue of speculation in the EU and also at global level. Agreeing with a reported statement by Dominique Strauss-Kahn during his visit to the European Parliament the previous day, Mr Papandreou insisted "we must not lose the opportunity to fix the global financial system". All of the measures Greece had taken reflected its commitment to protect the stability of the common European currency, said the prime minister. But Europe needed to recognise that the measures put in place, and those still to come, would need a certain time to take effect. "Change cannot be executed as swiftly as credit default swaps," said Mr Papandreou. Changes needed in EU policy? Among MEPs who spoke, Theodoros Skylakakis (EPP, EL) and Pascal Canfin (Greens/EFA, FR) asked about reforms to the Stability and Growth Pact and whether it should be made stricter or more flexible. Mr Papandreou replied that the EU should look at the "institutions which are missing in this project". He urged "more coordination and supervision" to ensure that countries with problems also received support, not just punishment. Otherwise there would be a failure not only of the country concerned but of the system as a whole. "We all say that there are plenty of instruments but nobody respects them because there is nobody at the helm" of the EU, said CRIS rapporteur Pervenche Berès (S&D, FR), who believed the measures put forward by Greece "merit admiration". Nikolaos Chountis (GUE/NGl, EL) asked the prime minister whether there was a specific support plan being prepared by the EU to assist Greece and whether such a plan would also help the EU pull out of recession. "I would prefer a European solution to be able to show to the world that Europe can act together," said Mr Papandreou, "rather than turning us to International Monetary Fund". According to Mario Borghezio (EFD, IT), the "excessively draconian measures contribute to agony" of Greece. He asked if the Greek government had considered the option of devaluation. Papandreou rejected this idea as it would in his view send the wrong signals. Calls for more economic policy coordination and a "system of conditional assistance" Several academics also took part in the discussions. According to Loukas Tsoukalis, Jean Monnet Professor of Integration at the University of Athens, and President of Eliamep (Hellenic Foundation for European and Foreign Policy), the Stability and Growth Pact "has become more and more flexible, to put it diplomatically". He called for the European dimension of European Monetary Union to be strengthened, partly by "closer and increasingly binding coordination of national economic policies with incentives and sanctions". Speaking of lessons to be learned from the crisis, Jean Pisani-Ferry, Professor of Economics at the University of Paris-Dauphine and fellow of the Bruegel institute, pointed to the lack of a crisis management regime in the eurozone. "Greece is doing the IMF programme without IMF money", he said, adding that due to the "principle of no co-responsibility for public debt" and "no assistance principle", the EU could not provide help within the eurozone. But as there is room for assistance, the EU should put in place a "system of conditional assistance," he argued. Next steps The experts' input will feed into further discussion among MEPs and the report by Special Committee rapporteur Pervenche Berès. The draft report is to be presented on 17 May, with the deadline for amendments set for 1 June. The vote on the report in committee is scheduled for 13 July, with a plenary vote to follow in September II.
Addressing a public hearing on European economic governance and EU tools for economic and social recovery, the Greek prime minister explained that Greece, in the throes of an "acute crisis", was introducing the "most difficult measures since World War II to put our house in order". Despite this, Greece was not asking the EU for help, pointed out CRIS chair Wolf Klinz (ALDE, DE), who referred to the EU finance ministers' decision last Tuesday to back the "very challenging austerity measures" put forward by Athens.
"We are not looking for a scapegoat nor asking for help to live from the wealth of others but what we do need is strong political support to make all these reforms and to make sure we will not have to pay more than is necessary," said Mr Papandreou. He added that Greece needed "to be able to borrow at rates which are normal". Calling for an end to "opportunistic speculation", he also warned that if the Greek government kept borrowing at such high interest rates, it would not be able to sustain the deficit reduction.
"We are really shocked that those who had to be bailed out with taxpayers' money used the first opportunity to speculate against the euro to make a profit," said Wolf Klinz to wide applause. "We need more Europe rather than less Europe," stressed Papandreou. The time had come "to put the loaded gun on the table", to make sure the markets would respond positively. In this context, Greece could provide an opportunity to deal with the issue of speculation in the EU and also at global level. Agreeing with a reported statement by Dominique Strauss-Kahn during his visit to the European Parliament the previous day, Mr Papandreou insisted "we must not lose the opportunity to fix the global financial system".
All of the measures Greece had taken reflected its commitment to protect the stability of the common European currency, said the prime minister. But Europe needed to recognise that the measures put in place, and those still to come, would need a certain time to take effect. "Change cannot be executed as swiftly as credit default swaps," said Mr Papandreou.
Changes needed in EU policy?
Among MEPs who spoke, Theodoros Skylakakis (EPP, EL) and Pascal Canfin (Greens/EFA, FR) asked about reforms to the Stability and Growth Pact and whether it should be made stricter or more flexible. Mr Papandreou replied that the EU should look at the "institutions which are missing in this project". He urged "more coordination and supervision" to ensure that countries with problems also received support, not just punishment. Otherwise there would be a failure not only of the country concerned but of the system as a whole.
"We all say that there are plenty of instruments but nobody respects them because there is nobody at the helm" of the EU, said CRIS rapporteur Pervenche Berès (S&D, FR), who believed the measures put forward by Greece "merit admiration".
Nikolaos Chountis (GUE/NGl, EL) asked the prime minister whether there was a specific support plan being prepared by the EU to assist Greece and whether such a plan would also help the EU pull out of recession. "I would prefer a European solution to be able to show to the world that Europe can act together," said Mr Papandreou, "rather than turning us to International Monetary Fund".
According to Mario Borghezio (EFD, IT), the "excessively draconian measures contribute to agony" of Greece. He asked if the Greek government had considered the option of devaluation. Papandreou rejected this idea as it would in his view send the wrong signals.
Calls for more economic policy coordination and a "system of conditional assistance"
Several academics also took part in the discussions. According to Loukas Tsoukalis, Jean Monnet Professor of Integration at the University of Athens, and President of Eliamep (Hellenic Foundation for European and Foreign Policy), the Stability and Growth Pact "has become more and more flexible, to put it diplomatically". He called for the European dimension of European Monetary Union to be strengthened, partly by "closer and increasingly binding coordination of national economic policies with incentives and sanctions".
Speaking of lessons to be learned from the crisis, Jean Pisani-Ferry, Professor of Economics at the University of Paris-Dauphine and fellow of the Bruegel institute, pointed to the lack of a crisis management regime in the eurozone. "Greece is doing the IMF programme without IMF money", he said, adding that due to the "principle of no co-responsibility for public debt" and "no assistance principle", the EU could not provide help within the eurozone. But as there is room for assistance, the EU should put in place a "system of conditional assistance," he argued.
Next steps
The experts' input will feed into further discussion among MEPs and the report by Special Committee rapporteur Pervenche Berès. The draft report is to be presented on 17 May, with the deadline for amendments set for 1 June. The vote on the report in committee is scheduled for 13 July, with a plenary vote to follow in September II.
