Trapped in 'Vicious Circle,' Greece Passes Crushing New Austerity Package

[polly7]

Published on
Monday, May 09, 2016
byCommon Dreams

'Every day they destroy our country a little more,' says protester in Athens

byDeirdre Fulton, staff writer

Amid protests and strikes, Greek lawmakers passed a crushing new austerity package early on Monday.

The reform package, which passed by a razor-thin margin, was described as "the toughest...the thrice bailed-out nation has been forced to enact since its debt crisis began," according to the Guardian.

The austerity measures represent €5.4 billion ($6.2 billion) in savings and would reduce Greece's pension payouts while raising taxes. The so-called "Troika" of international creditors—the European Commission, the International Monetary Fund (IMF), and the European Central Bank—are demanding such painful reforms in return for an €86 billion bailout agreed to last July in a bid to pull Greece out of its debt crisis.

Reuters reports:

During the debate, opposition parties argued pension cuts and tax hikes would prove recessionary, dealing another blow to a population fatigued by years of austerity.

"The measures will be a tombstone for growth prospects," said Kyriakos Mitsotakis, leader of the conservative New Democracy party which leads in opinion polls.

In fact, wrote Guardian economics editor Larry Elliot on Sunday: "Greece is being set budgetary targets that the IMF knows are unrealistic and is being set up to fail. It will then be punished further for being unable to do what was impossible in the first place."

As outside entities hold Greece's fate in their hands, Varoufakis argued, "[t]he result is a Europe more deeply immersed in disrepute and a Greek people watching from the sidelines an ugly brawl darkening their already bleak future."

A study released last week offered confirmation that the Troika's "bailout" packages delivered to Greece primarily served European banks rather than the Greek people.

Full article: http://www.commondreams.org/news/2016/05/09/trapped-vicious-circle-greece-passes-crushing-new-austerity-package


Massive IMF Bailouts are “Ponzi Austerity” Scheme

By Yanis Varoufakis and Amy Goodman
Source: Democracy Now

Published on Apr 28, 2016
http://democracynow.org - As the White House is backing calls for Greece to continue to implement widespread austerity measures, we spend the hour with former Greek Finance Minister Yanis Varoufakis. Earlier this week, negotiations between Greece and international creditors hit an impasse over the bankers’ demands for extra austerity measures. The International Monetary Fund is demanding cutting Greek pensions and eliminating income-tax exemptions if Greece does not hit its budget targets. "Cutting down pension is not reform. It’s like confusing butchery for surgery," says Varoufakis. He served as the Syriza party’s first finance minister after the left-wing party took power in 2015, after promoting an anti-austerity platform. He is in the United States promoting his new book, "And the Weak Suffer What They Must?: Europe’s Crisis and America’s Economic Future." Earlier this year, he launched a new pan-European umbrella organization called Democracy in Europe Movement 2025, or DiEM25.

Published on Apr 28, 2016
http://democracynow.org - We continue our conversation with former Greek Finance Minister Yanis Varoufakis as the White House is backing calls for Greece to continue to implement widespread austerity measures, following President Obama’s meeting with German Chancellor Angela Merkel earlier this week. Greece and its international creditors are once again negotiating the terms of the bailout and the extent of the austerity measures creditors can impose. Varoufakis responds to the German government’s claim that the majority of Germans oppose giving more money to Greece, and addresses the previous bailouts. "What happened to that money? It wasn’t money for Greece. It was money for the banks," Varoufakis says. "The Greek people took on the largest loan in human history on behalf of German and French bankers." He notes the conditions of the loan "guaranteed our national income would shrink by one-third. So it was impossible to repay that money." He says he opposes taking additional funds until the country’s economy is more stable.

Published on Apr 28, 2016
http://democracynow.org - The International Monetary Fund is demanding additional austerity measures from Greece if it does not hit its budget targets. It’s the latest impasse in years of fierce political clashes between Greece and international creditors. We are joined by a man who had a front-row seat to these battles: the former Greek finance minister for the anti-austerity Syriza party, Yanis Varoufakis. In his new book, "And the Weak Suffer What They Must?: Europe’s Crisis and America’s Economic Future," he describes how he helped lead Greece’s battle against European Central bankers and a historic referendum in which Greeks resoundingly voted down austerity. But only days after the "no" vote, he resigned. Varoufakis elaborates on the resignation statement he issued last July, when he wrote, "Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted 'partners', for my … 'absence' from its meetings; an idea that the prime minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the ministry of finance today." He famously said at the time, "I shall wear the creditors’ loathing with pride."


(bbm) What interest does the White House have in this?? These people are suffering so much already. Suicides spiked a few years ago, people are hungry and many have lost homes and employment, health coverage, etc. Why on earth push for further austerity?