Wednesday, May 23, 2012

In or out of the eurozone, we must ditch this failed model

by Seumas Milne

Guardian

May 22, 2012

Democracy has never been the European Union's strongest suit. It's an institution where the unelected and the barely accountable have always called the shots – and electorates are routinely made to vote again if they get the answer wrong in a referendum. So perhaps it's no surprise that as soon as it became clear the Greeks would be given another say on the austerity programme that has already driven their country into 1930s-style depression, the threats and bullying began in earnest.

The entire European establishment has now lined up to scare Greeks off giving another majority to anti-austerity parties, as they did in explosive elections earlier this month. Europe's revolt against austerity has to be contained. Democratic niceties about not interfering in other countries' elections have been ditched. If Greeks vote for parties such as the radical left Syriza – now leading in most opinion polls – they will be voting to leave the euro, Europe's political elite has warned.

"To remain in the euro," the unelected EU commission president José Manuel Barroso declared, "Greece must respect its commitments". By commitments, he meant the package of pulverising privatisations, tax rises and cuts in jobs, pay and services demanded by the EU and IMF in exchange for loans which cannot be repaid and are reducing the country to beggary. Knowing most Greeks both reject death-spiral austerity and want to stay in the euro, Europe's political class is ratcheting up the fear of forced exit meltdown.

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