By William Wall, The Guardian
The behaviour of the EU states towards Greece is inexplicable in the terms in which the EU defines itself. It is, first and foremost, a failure of solidarity.
The
"austerity package", as the newspapers like to call it, seeks to
impose on Greece terms that no people can accept. Even now the schools are running out of books. There were 40% cuts in the public health budget in 2010 – I can't find the present figure. Greece's EU "partners" are demanding a 32% cut in the minimum wage for those under 25, a 22% cut for the over 25s. Already unemployment for 15-24-year-olds is 48% – it will have risen considerably since then. Overall unemployment has increased to over 20%. The sacking of public sector workers
will add to it. The recession predicted to follow the imposition of the
package will cause unbearable levels of unemployment at every level.
In
addition the "package" demands cuts to pensions and public service
pay, wholesale privatisation of state assets – a fire-sale, since the
global market is close to rock bottom – and cuts to public services
including health, social welfare and education. The whole to be
supervised by people other than the Greeks. An entire disciplinary and
punishment system.
When
we casually use a term like "bailout", it is important to remember
that it is not people who are being bailed out, or at least not the
Greek people. The bailout will not save a single Greek life. The
opposite is the case. What is being "bailed out" is the global
financial system, including the banks, hedge funds and pension funds of
the other EU member states, and it is the Greek people who are being
ordered to pay – in money, time, physical pain, hopelessness and missed
educational opportunities. The relatively neutral, even stoic, term
"austerity", is a gross insult to the Greek people. This is not
austerity; at best it is callousness.
On
top of this callousness, we must remember that the strategy itself is
nonsense. Every intelligent observer is agreed that cuts do not produce
growth. The highest rate of growth in the EU at present is in Poland
where massive public investment is driving the economy. GDP is
declining or barely moving among the "austerity" nations, including the
UK.
In
essence, this crisis is a failure of the EU states to show solidarity
in the face of an onslaught from the financial markets. At first glance
this seems to be a very simple fight. In one corner you have nation
states, which have the wellbeing of their citizens as their raison d'être; in the other you have global capitalism as represented by the financial markets, which has the wealth of a tiny few as its raison d'être.
But the nation state has, for a considerable time, identified itself
with those same markets. States have agreed to see themselves as
economies rather than societies. More recently we have been led to
believe that the market alone can provide everything the citizen needs
and much more efficiently than the structures that the citizens normally
rely on and which they have, over generations, erected as protections
against the revenge of the market.
This is the triumph of capitalism, that it has persuaded the world that capitalism is the world.
It
has led to the undoing of 200 years of struggle between ordinary
people and the super-rich. Trade unions didn't appear overnight, they
were a response to exploitation. Their defeat has led to the ubiquity
of precarious, and now free, labour. Workers are not protected in their
workplace by capitalists, they are protected by the laws won by
struggle against the capitalist. A sweatshop in China is a direct
assault not just on the rights of the Chinese worker but on those of
workers in, for example, the UK. Socialist internationalism and
solidarity were conceived as a way of defeating that ploy. Old people
do not die in the streets not because charity has saved them but
because 200 years of struggle has brought us the old age pension and
public health. The privatisation of those services is a return to the
19th century. None of this public good would have been won if people
had identified with the super-rich of 1812. Now that we have been
brought to such an identification, we stand to lose them all over
again.
Now
we see capitalism at its most triumphant. Greek police beat Greek
people in order to impose the will of the banks and hedge funds. The EU
member states, including Ireland, are the middleman, the quislings of
capital. Rather than reach out a hand of solidarity, we say, "better
them than us". As if the global markets will choose to pass on Ireland
once Greece has been destroyed. Solidarity is not just compassion for
one's fellow man; it is also materialist self-interest. One for all and
all for one. We stand or fall together. There is strength in unity.
Instead
we have decided to sacrifice the Greek people to the market in the
hope that our sacrifice will appease the gods of speculation. We
condemn them to misery and poverty to keep Standard & Poor's off
our backs. But we have miscalculated. Firstly, the communist left
currently stands at 42% in the polls, Pasok at 8%. Pasok (the leading
party in government) will vanish and a combination of real leftwing
parties will win the next election. They will not bend the knee and put
their necks on our block.
It
seems to me now that Greece will withdraw from the euro and default on
its debt. Who knows what will happen to it then, but it can hardly be
much worse than what we want from them, and at least it will be
something of their own choosing. The speculators will then take a little
time to consider which of the other economies to bet on. Perhaps then
the Irish government will regret its lack of solidarity. Whatever
happens, our behaviour and that of our EU compatriots has been shameful.
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