These bailouts are for the banks, not Greece – and they're deepening the crisis of democracy at the heart of the EU
Seumas Milne
guardian.co.uk, Wednesday 2 November 2011
"You might think that giving people a say in the most crucial decisions affecting their country would be second nature for a union of states that claims democracy as its most sacred founding principle. But George Papandreou's announcement that Greece would hold a referendum on the EU's latest shock therapy "rescue" plan was greeted with outrage across the chancelleries of Europe.
The Greek prime minister has now been summoned to the G20 summit in Cannes by Angela Merkel to be "read the riot act" over such reckless ingratitude. Last week's dose of new loans, 50% voluntary bank debt write-offs and yet more savage cuts and privatisations was supposed to have settled the matter and halted the threat of eurozone contagion – even if the deal's flakiness had already become painfully clear.
Papandreou's manoeuvre is, of course, a last-ditch attempt to save his political skin after months of mass street action over previous helpings of failed austerity that have driven Greek society to the brink. His government may fall and the referendum never be held, and even if it goes ahead Greeks will certainly be subjected to a barrage of threats and blackmail.
But the controversy goes to the heart of Europe's problem with democracy. It's not just fear of the risks of delay on febrile bond markets that has caused apoplexy, but the danger that Greeks might vote the wrong way. Voting is not how things are done in the EU. And whenever a state does actually consult its people – Denmark and Ireland had a go – they are made to vote again until they get it right....
But the loss of credibility created by the crisis goes beyond the eurozone to the economic ideology that has shaped the whole European Union for decades: of deregulation, privatisation and the privileging of corporate power, regardless of the modest employment rights introduced to limit social dumping......"
Seumas Milne
guardian.co.uk, Wednesday 2 November 2011
"You might think that giving people a say in the most crucial decisions affecting their country would be second nature for a union of states that claims democracy as its most sacred founding principle. But George Papandreou's announcement that Greece would hold a referendum on the EU's latest shock therapy "rescue" plan was greeted with outrage across the chancelleries of Europe.
The Greek prime minister has now been summoned to the G20 summit in Cannes by Angela Merkel to be "read the riot act" over such reckless ingratitude. Last week's dose of new loans, 50% voluntary bank debt write-offs and yet more savage cuts and privatisations was supposed to have settled the matter and halted the threat of eurozone contagion – even if the deal's flakiness had already become painfully clear.
Papandreou's manoeuvre is, of course, a last-ditch attempt to save his political skin after months of mass street action over previous helpings of failed austerity that have driven Greek society to the brink. His government may fall and the referendum never be held, and even if it goes ahead Greeks will certainly be subjected to a barrage of threats and blackmail.
But the controversy goes to the heart of Europe's problem with democracy. It's not just fear of the risks of delay on febrile bond markets that has caused apoplexy, but the danger that Greeks might vote the wrong way. Voting is not how things are done in the EU. And whenever a state does actually consult its people – Denmark and Ireland had a go – they are made to vote again until they get it right....
But the loss of credibility created by the crisis goes beyond the eurozone to the economic ideology that has shaped the whole European Union for decades: of deregulation, privatisation and the privileging of corporate power, regardless of the modest employment rights introduced to limit social dumping......"
