Introduction by ‘A Socialist in Canada’, July 2, 2015
Today, there are three articles published which argue for the desirability of the Greek government to lead the country out of the suffocating grasp of the European economic union and its currency, the euro. The articles also make an argument that a ‘Grexit’ is inevitable if the Greek government and the majority of the population choose to refuse the surrender to even harsher austerity which the leading governments of the European Union are pressing upon the country.
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Tsipras and the vampires
By Boris Kagarlitsky, Counterpunch, July 2, 2015
It is significant that the Troika characterised the use by the Greeks of this democratic procedure [referendum on austerity] as a rejection of the agreement. Troika representatives then called off the talks and declared that ‘aid’ to Greece would cease from June 30. This means that regardless of the outcome of the referendum, a technical default from July 1 is inevitable, and this in turn will lead almost automatically to Greece’s exit from the eurozone and return to the drachma. The chance that the supporters of austerity would win the referendum, illusory in any case, has now vanished completely.
What was bound to occur has now actually happened, just as in Argentina in 2001, where all political forces tried desperately to avoid a default and exit from the dollar zone (the Argentinian peso was tied to the US dollar), but where this occurred anyway. In both Argentina and Russia, financial collapse was followed by a few dramatic and chaotic months, after which an economic recovery began. The situation in Greece is somewhat more complex, but as well, the shift to an inevitably devalued drachma opens a range of possibilities.
Behind the Greek crisis
By William Polk, Consortium News, July 2, 2015
Faced with German and EU demands for more austerity, the Greeks are angry. They have deep memories of hatred against the Germans (this time, not soldiers but bankers). They have been, time after time, traduced by their own politicians. Prime Minister Alexis Tsipras must know that if he is charged with a “sell-out,” his career is finished…
Greeks also see their option of exiting the Euro as similar to stances taken by Britain and Sweden in not joining in the first place – although a painful adjustment for the Greek economy would be expected if Greece undertakes an unprecedented departure from the European currency.
However, unless the IMF and ECB offer a real chance for a better life for Greeks by forgiving most of the debts, I believe that the Greeks might well vote on Sunday to reject the austerity demands and leave the Euro.
Syriza can’t just cave in. Europe’s elites want regime change in Greece
By Seumas Milne, The Guardian, July 2, 2015
The real risk across Europe is that if Syriza caves in or collapses, that failure will be used to turn back the rising tide of support for anti-austerity movements such as Podemos in Spain, or Sinn Féin in Ireland, leaving the field to populists of the right.
Meanwhile, on Jacobin yesterday, Stathis Kouvelakis wrote about the importance of winning the ‘No’ vote in the July 5 referendum in Greece on the EU austerity blackmail agaisnt Greece:
A moment of great decisions
By Stathis Kouvelakis, Jacobin, July 1, 2015
Are European authorities trying to force regime change in Greece?, by Mark Weisbrot, The Globe and Mail, June 30, 2015
How Europe cancelled Germany’s debt in 1953, by the Jubilee Debt Campaign, Feb. 26 2015