Week 25: Villain – The Eurozone & IMF

by Charlie_East_West on June 21, 2015


Greece says it will run out of money at the end of the month if a deal with its creditors the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) cannot be reached. So, this week’s villain of the week award goes to the Eurozone and IMF for their constant infantilisation and bullying of Greece into meeting the next round of debt repayments.

As statemate continues between EU powerbrokers and Greece, Greece have once again been told in no uncertain terms by the EU debt-hawks that they must adhere to a set of economically crippling debt repayments and subsequently, more austerity, or face the risk of running out of financial liquidity.

The leaders of the Syriza Government in Greece have to date, held firm in the face of intense Eurozone bullying and have repeated their cry for help from their European partners (in particular, Germany) to write off some of the €317bn (£240bn) it still owes, so that the Greek economy can begin the healing process of recovery from seemingly endless austerity.

Whisper it, Syriza are now looking for help elsewhere – from the typically opportunistic Putin/Russia. Frying pan and fire politics in a nutshell.

The Eurozone bullying is wrong. It is also hypocritical. It represents a total disconnect with the rationale of the situation in Greece. The pressure group Jubilee Debt Campaign has previously stated that Greece is right to demand a more generous approach from its creditors, because although it has received €252bn in EU financed bailouts since 2010, only 10% of that has found its way into public spending. The remaining 90% has poured straight back out of the country in debt repayments and interest to its creditors, many of them banks and hedge fund schemes largely owned and leveraged by Germany and France. This is a total and utter false economy.

The people of Greece continue to pay the price for the mistakes of others. Money continues to drain out of Greece, rather than inwardly supporting those who need it most – the citizens of Greece. Meanwhile, the reckless banks and lenders that poured speculative cash into Greece in the runup to the crisis have escaped largely unscathed.

But, the paymaster elites within the Eurozone are playing zero sum game hardball. They will work by all means necessary to prevent a default on the debt. They are worried that if Greece walks, their influence to control the debt leverage mechanisms within the flawed Eurozone runs the risk of ending up like a house of cards and market panic then sweeps across the global economy.

Any chance of a sustainable recovery is totally restricted due to the endless payments of interest on its debt. Greece is largely in a mess because of hefty interest repayments to the Eurozone. The Eurozone and the cabal of politicians, banks and hedge funds have become the problem not the solution for Greece. No wonder Syriza and the Greek people want to find a way to get the hell out of the Eurozone and escape from an Eurozone-imposed Shawshank economy.

{ 1 comment… read it below or add one }

Thomas Sutcliffe June 22, 2015 at 9:50 am

Excellent article. War on Want are running a campaign to get the Greek debt cancelled: http://www.waronwant.org/campaigns/trade-justice/more/action/18334-greece


Leave a Comment

Previous post:

Next post: