Showing posts with label Greece. Show all posts
Showing posts with label Greece. Show all posts

Greece: debt and memory of war (Conn Hallinan is a columnist for Foreign Policy In Focus.)

GermanbombingofPiraeus
Memory is selective and therein lies an explanation for some of the deep animosity between Berlin and Athens in the current debt crisis that has shaken the European Union (EU) to its foundations.
For German Finance Minister Wolfgang Schauble, "memory" goes back to 2007 when Greece was caught up in the worldwide financial conflagration touched off by American and European speculators. Berlin was a major donor in the 240 billion euro "bailout" - 89 percent of which went to pay off the gambling debts of German, French, Dutch and British banks. Schauble wants that debt repaid.
Millions of Greeks are concerned about unpaid debts as well, although their memories stretch back a little further.
In July 1943 Wehrmacht General Hubert Lanz, commander of the First Mountain Division, was annoyed because two of his officers had been threatened by civilians in the western Greek town of Kommeno. It was dangerous to irritate a German commander during the 1941-45 occupation of Greece.
Lanz first murdered 153 men, women and children - ages one to 75 - in Mousiotitsas, then surrounded Kommeno, where his troops systematically killed 317 people, including 172 women. Thirteen were one year old, and 38 people were burned alive in their houses. After the massacre, the soldiers ate their lunch in the village square, surrounded by the bodies of the dead, and then pushed on to other villages, killing more than 200 civilians.
It was not the first, nor the last massacre of Greeks, and most people in that country can recite them like the beads on a rosary: Kondomari (60 killed); Kardanos (180 killed); Alikianos (118 killed); Viannos (over 500 killed); Amari (164 killed); Kalavryta (over 700 killed); Distomo (214 killed). All in all, the Germans destroyed more than 460 villages, executed 130,000 civilians, and murdered virtually the entire Jewish population - 60,000 - during the occupation.
On top of that, Athens was forced to "lend" Germany 475 million reichsmarks - estimated today at 14 billion euros - to pay for the occupation. Adding interest to the loan makes that figure somewhere around 95 billion euros.
Greece's public debt is currently 315 billion euros.
The Greeks "remember" a few other things about those massacres. Gen. Kurtl Student, the butcher of Kondomari, Kardanos, and Alikianos, was sentenced to five years after the war, but got out early on medical grounds. The beast of Mousiotitsas and Kommeno, Gen. Lanz, was sentenced to 12 years, served three, and became a major military and security advisor to the German Free Democratic Party. In 1954 he wrote a book about his exploits and died in bed in 1982. Gen. Karl von Le Suire of Kalavryta fame was not so lucky. Captured by the Soviets, he died in a Stalingrad POW camp in 1954. Lt. Gen. Friedrich-Wilhelm Muller, who ordered the Viannos massacre, was tried and executed by the Greeks in 1947.
It is not hard to see why many Greeks see a certain relationship between what the Germans did to Greece during the occupation and what is being done to it today. There are no massacres - although suicide rates are through the ceiling - and no mass starvation, but 44 percent of the Greek people are now below the poverty line, the economy is shattered, and Greeks feel they no longer control their country. Up until the last election, they didn't. The Troika - the European Central Bank, the European Commission, and the International Monetary Fund - dictated the price of the loan: layoffs, wage and pension reductions, and huge cutbacks in health care. True, their occupiers did not wear the double thunderbolts of the SS or the field green of the Wehrmacht, but armies in pinstripes and silk ties can inflict a lot of damage.
Germany dismisses the Greek demand for reparations - estimated at anywhere from some 160 billion euros to over 677 billion euros - as a long-dead issue that was decided back in 1960 when the Greek government signed a Bilateral Agreement with Berlin and accepted 115 million deutschmarks in compensation.
"It is our firm belief that questions or reparations and compensation have been legally and politically resolved," said Steffen Seibert, a spokesperson for German Chancellor Angela Merkel. "We should concentrate on current issues and, hopefully what will be a good future."
But that is a selective reading of history. There was never any "resolution" of Nazi Germany's post-war debts because the country was divided between East and West. The 1953 Treaty of London cut Germany's obligations in half and stretched out debt payments, but the treaty did not address reparations because they were supposed to be resolved in the final peace treaty. However, with Germany divided, there was no such agreement.
When Germany was unified in 1990, the Greeks raised the issue of reparations, but the Germans dismissed the issue as resolved by the combination of the London Treaty and the 1960 payoff. But not according to historianHagen Fleischer, who has studied the reparations issue and the original loan documents. Fleischer says that Germany first argued that as long as the country was divided, Berlin could not consider repaying any debts. "Then after German reunification Helmut Kohl [then chancellor] and Hans-Dietrich Genscher [then foreign minister] said that it was now much too late. The matter was ancient history."
According to the Syriza government, the 115 million marks Germany paid in 1960 were only in compensation for Greek victims of Nazism, not the physical damage to the country, the destruction of the economy, or the forced loans.
"Germany has never properly paid reparations for the damage done to Greece," argues Greek Prime Minister Alexis Tsipras. "After the reunification of Germany in 1990 the legal and political conditions were created for this issue to be solved. But since then, German governments chose silence, legal tricks and delay."
Many Greeks refuse to accept what they consider a paltry sum for the vast crimes of the occupation. Four descendents of the 214 civilians massacred by the 4th SS Panzergrenadier Division at Distomo sued and, in 1997, were awarded 37.5 million euros, a ruling upheld by the Greek Supreme Court in 2000. When Germany refused to recognize the verdict, the defendants took their case to Italy, and in 2008 an Italian court ruled that the plaintiffs had the right to seize German-owned property in compensation for the Greek award, including a villa on Lake Como.
Germany appealed the Italian decision to the International Court at Hague, which found in favor of Berlin on a principle of international law that countries are immune from the jurisdiction of other states.
However, Germany has assets in Greece, including property and the Goethe Institute, a leading cultural center in Athens. Justice Minister Nikos Paraskevopoulos says he is ready to begin seizing German assets in Greece.
Tsipras says Germany has a "moral obligation" to pay reparations, a sentiment that some on the German left agree with. "From a moral point of view, Germany ought to pay off these old compensations and the 'war loan' that they got during the Occupation," says Gabriele Zimmer of Die Linke, a party closely allied to Syriza in the European Parliament.
Addressing the Greek Parliamentary Committee for Claiming the German Reparations on March 10, Tsipras asked, "Why do we tackle the past" instead of focusing on the future? "But what country, what people can have a future if it does not honor its history and its struggles?"
Dismissing the argument that reparations are ancient history - "The generation of the Occupation and the National Resistance is still living" - Tsipras warned about the consequences of amnesia: "The crimes and destruction caused by the troops of the Third Reich, across the Greek territory, but also across the entire Europe" are memories "that must be preserved in the younger generations. We have a duty - historical, political, ethical - to preserve, remember forever what Nazism means, what fascism means."
Nazism is not a memory that needs a lot of refreshing in Greece. Sometime this spring some 70 members of the neo-Nazi Golden Dawn Party, including 16 current and former Parliament members, will go on trial for being members of a "criminal organization." The anti-Semitic and racist Golden Dawn Party has been associated with several murders, attacks on leftists, trade unionists, and immigrants, and has close ties with the police and several of the billionaire oligarchs who dominate Greek politics and the economy.
Indeed, its profile is eerily similar to that of the German National Socialist (Nazi) Party in its early years. Golden Dawn has 17 members of Parliament and is the third highest vote getter in the country, though its support has recently dipped.
Old memories certainly fuel Greek anger at Germany, but so do the current policies of enforced austerity that Berlin has played a pivotal role in inflicting on debt-ravaged Greece. "Germany's Europe has finished," says Greek Social Security Minister Dimitris Statoulis, the Europe "where Germany forbids and all other countries execute orders."
Thanks to Kia Mistilis, journalist, photographer and editor, for providing material for this column.
This article originally appeared at Conn Hallinan's blog, Dispatches From the Edge.
Photo: Damage from the German bombing of Piraeus, Greece, on April 6, 1941. Australian War Memorial Image/Wikimedia

Give Greece a chance … By Felipe Van Keirsbilck (Alter Summit)

Alter Summit Newsletter - February 2015
Editorial
Give Greece a chance …
By Felipe Van Keirsbilck (Alter Summit)
The spectacular results of the Greek elections on January 25 provoke millions of comments: each announcement, each incident, each manœuvre of the ECB to put pressure on governments shake up the media and the social networks.

Alter Summit and its affiliated organisations observe the events from further away, but at the same time with an involvement which brings them closer to them.

First the distance: it stems from the fact that our common basis, between more than 100 organisations in 20 countries, can be summarized in a very simple question: how are we going to put a spanner in the wheels of austerity policies? Or, in other words, how are we going to stop European governments to persevere in their policy of austerity?

From the basis which has brought us together for nearly 3 years, the political situation in Greece brings about two essential questions (which will be debated at the Alter Summit assembly next 5th and 6th of March):
  • Does the arrival of an anti-austerity government in one (single) country constitute a sufficient event? How can this country confront the Europe of austerity?
  • What is the role Greek and European social networks are playing in this new situation?
But the reflection we have been having for two years is not that of a group of “experts”, because our involvement is very real!

18 months ago, there were 2000 of us in Athens demanding a social, ecological, egalitarian and democratic Europe. If needs be, we shall go back to Athens to express our political and material solidarity with a nation having had the courage to vote against the program lines of Brussels and Frankfurt.

Whatever happens with political shenanigans and negotiations, this nation deserves to be given a chance to change direction. We will be by its side!

Could brinkmanship on Greece’s left deliver the country from austerity? BY WILLIAM RAILTONON JANUARY 4, 2015

syriza
“Greece is not run through democracy now, it is run through a Troika. Three foreign officials that fly into Athens airport and tell the Greeks what they can and cannot do.”
Almost two years after this criticism of European hegemony was voiced by an MEP in the European Parliament, Greece finds itself heading into an election which could result in renouncing its austerity measures and leaving the Euro.
On 25th January, Greeks will go to the polls once again, following the Greek parliament’s rejection of Prime Minister Antonis Samaras’ presidential nomination.
Opinion polls predict victory for the young, leftist party Syriza. Formed of a coalition of National Socialists, greens and Maoists and others, Syriza’s popularity owes to its pledges to raise the minimum wage, end privatisation and reverse the austerity measures which Greece consented to as part of its $240bn bailout by the EU and IMF.
Campaigning on television this week, three of Syriza’s MPs, including economic adviser Yiannis Milios, indicated that unless the conditions of the Europe’s bailout can be eased, a government headed by Syriza would stop making repayments to foreign creditors on its debt. Fears of a default on these repayments have scared markets.
yiannismiliasIn an interview with the Rosa Luxembourg Foundation in March 2014, Milios said that in Greece “public debt is used as a vehicle to increase the power of the ruling classes and the very big corporations and to deprive labour rights and income from the masses” by dismantling the welfare state and cutting wages and pensions.
For the last 4 years, social conditions have been difficult in Greece. Disenchantment with Europe is a view shared by the squeezed middle and unemployed youth alike. So long as Greece’s fiscal policy is dictated by the so-called Troika (the IMF, the ECB and the European Commission), real growth is a pipe-dream.
The Greek political establishment is very worried about what might happen in three weeks’ time. Rather than strengthening the Greek negotiating position, members of the current government believe that stopping repayments will lead to Greece’s exit from the Euro. Greek newspaper Ekathimerini reported that on Wednesday, Prime Minister Samaras, head of the ruling conservative party New Democracy, described Syriza’s agenda as “the most official program guaranteeing poverty that the Greek people have ever heard in an election campaign”.
If Greece’s political shift to the left could be expected, it is surprising that Syriza is leading the charge. A victory for Syriza is a prediction few would have made before the bailouts.
AlexissyrizaSince the 1980’s, the Greek centre-left has been represented by Pasok, a popular social-democratic party which was the main partner in the Greek coalition government until 2012. However, Pasok was ousted during the election for the poor role it played in negotiating the austerity imposed by Europe. Pasok currently languishes with 5% of the vote but Syriza was doing even worse in the polls back in 2009 (4%), before the young radical Alexis Tsipras led the party to victory in last year’s European elections, winning a 27% share of the vote – 4% more than its rival in government, New Democracy.
The real question is: Can Syriza’s threat of a ‘Grexit’ force Germany to lessen austerity measures?
There was a time when a Grexit was unthinkable. When the second bailout was issued in 2012, Greece’s default threatened to bring down Spain, Ireland, Italy and others with it; a total Eurozone collapse. Some commentators are still arguing that Greece’s exit in 2015 would trigger a selloff of peripheral bonds, undermine the ECB and threaten the Euro much to the same extent.
However, in an interview with Rheinische Post newspaper, a senior member of Angela Merkel’s party, Michael Fuchs, has unequivocally denied that Greece’s “blackmail” would work this time. “The times where we had to rescue Greece are over. There is no potential for political blackmail anymore. Greece is no longer of systemic importance for the euro.”
Syriza’s victory is by no means certain. Polling data suggests that no party will emerge with an outright majority. A poll cited in the Financial Times has suggested that 5% of the total vote might even be stolen by ex-PM and former Pasok leader George Papandreou, who has established a new centre-left coalition. The left’s vote would be split and the government would cling to power.
But Syriza is not alone. The rise of Podemos (which translates as “We can”), a Spanish leftist party, is symptomatic of political parties on the left breaking into the mainstream. The wave of populist parties gathering support since the economic crisis has come predominantly from the right, but not exclusively.
Economic protectionism and a tough stance on crime and chiefly immigration (albeit to very different extents) have characterised the policies of right-wing parties appealing to the politically disillusioned. With the rise of Syriza and Podemos, it would seem that nationalism and euroscepticism are attitudes which the left and right could hold increasingly in common in the future.
After all, the MEP who stood up in 2012 to attack the Troika’s dictatorship of Greek policy was UKIP’s Nigel Farage.
As these parties become established as more than just a protest vote, they will find themselves under increasing pressure to show that their ideals can be transformed into workable alternatives.
We will have to wait until after 25th January to see if Syriza can deliver.

It's Time to Start Paying Attention to Greece Again By Joe Weisenthal (http://www.businessweek.com/)

Alexis Tsipras, the leader of SYRIZA (Coalition of the Radical Left) and current leader of the Greek Opposition, is pictured at the beginning of the protest march on Nov. 27, in Athens.
Photographer: Michael Debets/Pacific Press/LightRocket via Getty Images
Alexis Tsipras, the leader of SYRIZA (Coalition of the Radical Left) and current leader of the Greek Opposition, is pictured at the beginning of the protest march on Nov. 27, in Athens.
It’s been awhile since Greece was front-page news, so here’s a refresher: A few years ago, it looked as though Greece might be forced to leave the euro zone, as investors lost faith in the country’s ability to pay its debts. In late 2011, 10-year Greek bonds were trading with a yield around 35 percent. The crisis began to dissipate in the summer of 2012, when the center-right New Democracy party eked out the narrowest of election victories and cobbled together a coalition that agreed to a bailout under harsh terms. Since then financial markets have eased considerably, although the economy is still in the gutter.
Anyway, you might want to start paying attention again.
Greece may see elections early next year, and a new poll just out has the radical leftist Syriza party in first place by more than 3 percent. If Syriza takes power, the relative calm of Greek financial markets could be rocked.
So the question is, will Greece in fact hold an early election? It may depend on what happens in late February and early March, when the Greek parliament is set to vote on a new president. Current Prime Minister Antonis Samaras of the New Democracy party faces a massive task to keep his government together.
In an e-mail, analyst Lorcan Roche Kelly of Agenda Research explained what might go down:
“[Samaras's] coalition (of New Democracy and Pasok) controls 155 seats in the 300-seat parliament. In order to elect a president, he needs 180 votes in favour of his candidate (the president vote runs in three rounds, if 200 of the 300 MPs do not vote in favour of the candidate in the first two rounds, there is a third round where the majority is reduced to 180, there are 5 days between each round, so the whole process takes over a week. ie, it will be noisey)
“Samaras is 25 seats short of this target, and if he doesn’t get it, an election will be called.”
There are a lot of question marks about whether the current coalition can get to the 180 votes needed. It’s possible that by cajoling enough independent members of parliament, the coalition could get there and keep the government alive. But it will be extremely close, and they could come up short.
If an early election is called, and if the leftist Syriza party controls the government, watch out. Ostensibly, Syriza and its leader, Alexis Tsipras, want Greece to stay in the euro zone. But they’re dead set against the current bailout/austerity regime.
Then you’re looking at a potentially huge game of chicken. The European leaders who bailed out Greece will insist that current terms are not going to be renegotiated. The new government will insist that it wants to stay in the euro zone but that the arrangement must change. How that plays out is unpredictable, but it could easily be the major world story to watch early next spring.