Tuesday, 9 June 2015
Greece - Is Syriza buckling under the pressure of the EU moneymen?
It's five months since that heady Burns Night when I witnessed Syriza - The Coalition of the Radical Left - win the Greek General Election. And the answer to the oft asked question back then 'who is going to blink first the new Greek Government or the EU moneymen?' appears to have been answered. Elected on a seven point programme know as its 'Thessaloniki Declaration' Syriza promised, among other things to : get half of Greece's 319bn debts written off as unpayable renegotiate the terms for repaying the rest with the Troika [IMF/EU and ECB] halt the privatisation programme agreed by previous New Democracy and Pasok Governments increase the national minimum wage and state pension to 751 Euro's per month and 750 Euro's respectively organise a European wide debt conference to build support for their programme of non payment. Any honest and objective assessment of the progress made on those pledges does not flatter Syriza. Prime Minister Alexis Tsipras and his colleague Janis Varoufakis have succumbed to pressure applied by their creditors in Berlin, Frankfurt, Brussels and New York. The debts have not been written off. Indeed unaffordable repayments have all been made in full. The Port of Piraeus, the jewel in the crown of the Greek state, is to be sold off to a Chinese company. The promised increases in the minimum wage and state pensions have not happened either. The European debt Conference is nowhere to be seen. The odds stacked against Syriza have simply been insurmountable. Varoufakis and Tsipras have been outgunned on every occasion and emerge from every meeting with the Troika further compromised. The Greek economy meantime has been shrinking and shrinking. Billions of Euros have been withdrawn from banks as savers stash cash under their beds fearing credit controls will be imposed following the inevitable debt repayment failure. And yet despite all these setbacks Syriza remains popular at home. Recent opinion polls give them a commanding lead over the opposition New Democracy. They emerge with very little from the talks with the Troika but Greeks at least appreciate the fact they stand up to the creditors and conduct themselves with dignity and a never failing resolve. This is not something the previous New Democracy or Pasok Governments ever did. But as Paul Mason writes in his blog for Channel Four News this week the Coalition's partners, the trades unions and the youth who might have been expected to lead protests against the Tessaloniki failures will not remain silent forever. There are tensions and conflicts within Syriza about the failure to deliver on the Coalitions manifesto. As things stand those arguing in favour of leaving the Eurozone remain in the minority. Opinion polls suggest the Greek people are overwhelmingly against such a 'Grexit' and a return to the drachma. In these circumstances the political options open to Alexis Tsipras are extremely limited. He appears intent on shoring up Syriza's political support at least and has suggested that if the latest talks with the Troika - due to end on June 30th - fail he may call a Referendum to let the Greek people themselves decide whether to accept the terms negotiated or to leave the Euro.