International

Few will disagree that things aren’t going at all well for Greece. In addition to an economic crisis, there is now a political crisis. Hopefully, in new elections the SP’s sister party, Syriza, will emerge from the polling booths as the biggest force and at last a real recovery can be brought about in Greece.

Brussels’ answer has up until now been for Greece to pay off some of what it owes to the banks while a punitive austerity package and reform of the public authorities is imposed by a European Task Force. In mid-March the Commission proudly presented the results of this Task Force for Greece, a body which consists of forty-five officials, of whom fifteen have been posted to Athens and the remaining thirty do their work in Brussels. That the cuts have also led to a collapse in demand in Greece, the bankruptcy of large numbers of small and medium-sized businesses and to downright poverty is generally known. But has this Task Force perhaps enjoyed success?

For the SP the writing off of a major part of the Greek debt, the introduction of good, which is to say corruption-free, governance, and the promotion of investment must be given centre stage. The financial aid that Greece has had to date could be used only to pay off state debt, (a form of aid which, after a quick turn around the Acropolis, went straight back to the banks) and was completely inadequate. Nevertheless, the Commission is taking a step forward with its Task Force: investments should be encouraged via the structural funds and at the same time something should be done about good governance.

From the Task Force’s report it has emerged that the structural funds will mostly be deployed for (yet more) roads and aid to small and medium-sized businesses. Nothing is said about what long term effects will result from these projects. Look at the figures for the Greek economy and you will see that the positive effects of the projects are nullified by the destructive effect of austerity. In other words, this money is a drop in the ocean.

Proposals for better governance are a complete joke. The Task Force notes that projects are under way to improve tax collection, health care, the business climate, and the organisation of government as a whole. And all of this with a mere handful of officials. Reducing corruption and improving tax collection are essential to the repair of the Greek economy. This demands, however, a change amongst the people, who must no longer accept corruption and must report its incitement by state officials. The mood in the country is certainly moving in this direction, and the Greek government, with the aid of other member states, must take advantage of this. Solid investment in improvements is, however, required, in the institutions of justice and the law – the police, home ministry and the power of the courts – and for this a great deal of money will be needed. Sending a few officials to Athens for a couple of days is more symbolic politics than something which will have real effects.

Inadequate writing off of debt, too many spending cuts and European laxity in offering aid for structural improvements to public administration, these are the ingredients of Brussels’ prescription for Greece. No wonder that it isn’t working and that the Greeks are beginning to sink into despair. It is encouraging that the Greek electorate is turning its back on the traditional parties (the Christian Democratic New Democracy and the Social Democrats of PASOK) and looking to modern left parties such as Syriza. A government under Syriza’s leadership won’t have things easy. The country’s problems are far too great for that, but the party is absolutely right to reject the present ‘agreement’ with Brussels. There is no indication that the Brussels prescription will work. For that, what’s needed are a debt write-off programme on a much larger scale, a rigorous reform of the public administration and investment in innovative sectors such as sustainable energy. I wish the Greeks all the best, and hope that new elections will help put Syriza in the saddle and thus make a new way out of the crisis possible.