The EU's austerity measures were never about helping ordinary Greeks
Europe has escaped the chaos of a Grexit, but for the Greek people there is no happy ending. The latest dose of austerity has killed off any hope of recovery.
Take, for example, the 30 per cent VAT hike in the Aegean islands. Inevitably, this will drive hotels and restaurants out of business, swelling the numbers of unemployed (already a staggering 51 per cent of young people).
The new deal also kills off any pretence that Greece is a free, sovereign country. The government must now seek the approval of Troika officials before it can pass any legislation, and will see 50 billion euros of its assets hived off into a fund to satisfy the rapacious demands of its creditors.
What is painfully clear is that the austerity measures imposed by the EU over the last five years were never about helping ordinary Greeks but always about making sure French and German bankers got their money back – normally with extortionate interest.
90 per cent of bailout money has not been spent in Greece at all, but gone directly to repaying loans. The human cost is tragic.
Take health care, where hospitals have seen their funding slashed by 50 per cent. The state is behind in payments of health care staff and medicines for cancer patients are in short supply. TB, malaria and malnutrition are on the rise, fuelled by the fact that 40 per cent of children now live in poverty.
Then there is the devastating brain drain. Take my high school teacher friend – after seeing her salary cut from 1500 euros a month to just 780 euros a month she left the country. Thousands of able, qualified young people have made the same decision. Who can blame them?
This is not a European Union that socialists can be proud of. It has acted more as a thuggish enforcer for loan sharks than an engine for solidarity and social justice. Along the way Greek democracy and independence have been fatally undermined
In the lead up to the in/out referendum the EU will take centre stage in British politics. In that campaign I don’t believe Labour should simply be a cheerleader for the status quo.
Just like the Tories, we must be arguing for a reformed Europe. However, their vision is not our vision, and their shopping list of reforms is very different to ours. For example, where they want to opt out of protection for workers we see that as a vital part of the architecture.
Beyond that, we need a Europe where bailing out the poor is every bit as important as bailing out banks, where the focus of economic policy is relentlessly on growth and jobs for the millions of unemployed young people.
We need a ‘New Deal’ to provide investment for Europe’s poorer, failing economies. We also need a more democratic Europe that respects the sovereignty of nations. A Europe that is more transparent, for example, in relation to the EU budget process.
A Europe less dominated by bureaucrats where, for example, legislation can be initiated by MEPs or national parliaments rather than just by the unelected commissioners.
As the Greek drama has unfolded, Labour has stood mute on the sidelines. I hope in the months ahead this changes and the party seizes the chance to argue for a socialist vision of Europe.
Tim Starkey is a barrister and candidate for the Labour National Policy Forum. Follow him on Twitter
To reach hundreds of thousands of new readers and to make the biggest impact we can in the next general election, we need to grow our donor base substantially.
That's why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward's work.
We still need another 124 people to donate to hit the target. You can help. Donate today.
21 Responses to “The human cost of the Greek crisis is shameful”
Peter Martin
“”…we must be arguing for a reformed Europe”
Wasn’t that Syriza’s line? Did that get them anywhere?
How that ours should be “we must be arguing to leave the EU” ?
We’ll still be a part of Europe geographically! We’ll still be able to come last in the Eurovision song contest and struggle to qualify for European Football championships. Life will still go on!
Note that Switzerland and Norway are a part of Europe but they aren’t part of the EU. The EU and Europe aren’t synonymous!
Matt M
Now, finally, the Left realises that the EU is an anti-democratic organisation. Isn’t it sad that the broader Left has been happy for so long to go along with reduced democracy in order to enact its agenda?
stevep
Interesting that the Greeks have to raise VAT and cut pensions to qualify for the bailout. The less well-off bearing the brunt of it again. Rampant privatisations too, no doubt. The “liberalisation ” of labour markets. Why not close tax loopholes and put up the upper rate of income tax?
Maybe Greece would be better off out of the European farrago. They would go bust and suffer in the short term but could nationalise a Greek central bank, raise it`s own currency and set an economic agenda to suit itself.
Life for the Greeks wouldn`t be cosy and they would still have to deal with harsh realities, but they would have the satisfaction of doing it their way and keeping their version of democracy relatively intact.
stevep
The Labour movement in Greece is taking industrial action In protest. It`s one of the few left in Europe that hasn`t been neutered.
Torybushhug
They crave capital, another £300bn of it, paid for my Slovakian and German workers, this on top of vast billions they’ve already happily taken from the same workers. Democracy applies to those Slovakian and German workers too.
Having said this, I agree Greece should exit and at least enjoy its own autonomy. Defaulting isn’t nearly as bad as all the pundits suggest, Argentina did it and soon found a queue of new lenders happy to lend to a nation freshly relieved of its vast costly debt.