[Marxism] FT's Sandbu, Munchau; Guardian's Elliot on Greek deal

Shalva Eliava shalva.eliava at outlook.com
Mon Jul 13 20:02:44 MDT 2015


Three unedifying lessons of the Greek deal
Martin Sandbu

...Greece capitulated because the European Central Bank forced it to do so. In flagrant defiance of its treaty obligation to support the general economic policy of the eurozone — which includes since June 2012 a requirement to separate the health of the banking system from the solvency of sovereigns — the ECB forced a shutdown of the Greek banking system and made clear it would only let it function again once a deal on sovereign finances had been struck.

This has established beyond any doubt that the independence of the eurozone’s central bank from politicians is nothing of the sort. Far from being independent, the ECB does governments’ bidding. But its dependence is selective — and that is something that should worry the citizens of eurozone nations beyond Greece.


Greece’s brutal creditors have demolished the eurozone project
Wolfgang Munchau 

...What should the Greeks do now? Forget for a moment the economic debate of the past few months, over issues such as the impact of austerity or economic reforms on growth. Instead ask yourself this simple question: do you really think that an economic reform programme, for which a government has no political mandate, which has been explicitly rejected in a referendum, that has been forced through by sheer political blackmail, can conceivably work?


With Europe behind it, Greece is being pushed into further peril
Larry Elliott

...In truth, there is not the remotest prospect of Greece raising €50bn 
through privatisations in the next three years. The €50bn target was 
first announced back in 2011, since when the value of the Greek stock 
market has fallen by 40%, making its assets far less valuable. In the 
past four years, privatisation proceeds have raised just over €3bn.

For the moment, Greece remains in the euro but it should be obvious 
by now that there are only two ways of resolving the crisis. The first 
is to write off a large chunk of its debts. The other is to allow it to 
grow at a pace that allows it to service its debts. This deal offers 
neither. Its one minor concession is that there will be talks about 
giving Greece longer to pay its debts provided it takes steps that are 
certain to lengthen and deepen the recession. This is not a solution. It
 is a chink of light filtering through the bars of the debtors’ prison.


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