May 18, 2012
"I don't believe in heroes or saviours," says Alexis Tsipras, "but I do believe in fighting for rights … no one has the right to reduce a proud people to such a state of wretchedness and indignity."
The man who holds the fate of the euro in his hands – as the leader of the Greek party willing to tear up the country's €130bn (£100bn) bailout agreement – says Greece is on the front line of a war that is engulfing Europe.
A long bombardment of "neo-liberal shock" – draconian tax rises and remorseless spending cuts – has left immense collateral damage. "We have never been in such a bad place," he says, sleeves rolled up, staring hard into the middle distance, from behind the desk that he shares in his small parliamentary office. "After two and a half years of catastrophe Greeks are on their knees. The social state has collapsed, one in two youngsters is out of work, there are people leaving en masse, the climate psychologically is one of pessimism, depression, mass suicides."
But while exhausted and battle weary, the nation at the forefront of Europe's escalating debt crisis and teetering on the edge of bankruptcy is also hardened. And, increasingly, they are looking towards Tsipras to lead their fight.
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1 comment:
It would be very helpful to Alexis Tsipras if he can state that in the event of Greece being refused further funding in Euros then the Drachma will be issued as a purely internal currency and there will be no denomination of Euros into Drachmas.
This will make it clear that Greece has a response to the financial blackmail of the Trioka that does not involve leaving the Euro. Although the issue of an internal currency may technically violate some Euro zone rules, it will play fair with the Euro. All Euro holdings and debts will continue to be respected (not withstanding specific repudiations) and there is no practical reason for it to be considered a Euro exit.
This will dispel the intense fear of forced complete Drachmatisation of Greece, all its Euros and all its debts. Most importantly it will:
Reassure the Greek electorate that Tsipras has a strategy for both running the country and staying in the Euro if European institutions lack the maturity to listen and negotiate with him.
Reassure everyone that their Euros are safe in Greece. This will stop the flight of Euros out of the country.
Liberate Greece, and by demonstration any Euro Zone country, from the need for distressed borrowing just to breath their own air, eat their own food and cooperate with each other to get things done.
Internal currencies might be one solution to the Euro crisis. The other, which I believe Tsipras is rightfully campaigning for is fair issue of the Euro designed for all of the nations that use it. To get there, it might help Tsipras to have non-Euro violating internal currency as a negotiating strategy.
If Tsipras can convince the Greeks that he knows how to keep Greece running and in the Euro even if Europe will not cooperate, then they will not fear to vote for him.
Technical note:
Re-denominating Euros in a new currency is a logical consequence of giving legal tender status to the new currency. An internal currency does not require the status of legal tender. It will be accepted by its citizens because it is paid in salaries, the government receives it for payment of tax and it is there when the Euro isn't. Legal tender status is an assurance that its value does not depend on good will. An assurance mostly sought by those whose own goodwill might be questioned. This is not needed in an internal currency, a nation can and must trust its own goodwill.
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