Greek Deal Poisons Europe As Backlash Mounts vs ‘Neo-Colonial Servitude’

[GliderGuider]

Greek Deal Poisons Europe As Backlash Mounts vs ‘Neo-Colonial Servitude’

Greek premier Alexis Tsipras faced a furious backlash from own Syriza party on Monday night after yielding to draconian demands from Europe’s creditor powers, and agreeing to let foreign surpervisors to take control of his country. The bitter climb-down clears the way towards an €86bn rescue package and the renewal of emergency liquidity for the Greek banking system, once Greece’s parliament has voted for pension cuts, tax rises and a raft of other measures by Wednesday. This is the first of a series of deadlines as the country is kept on a tight leash. The terms imposed after marathon talks through the night on Sunday are far harsher than those rejected by Greek voters in a landslide referendum a week ago, and risks shattering democratic consent in Greece.

It has left Europe bitterly divided along North-South lines of cleavage, severely testing the political cohesion of monetary union. “Greece has been devastated and humiliated. Europe has showed itself Pharisaical, incapable of leadership and solidarity,” said Romano Prodi, the former Italian prime minister. An independent fund will take control of €50bn of Greek state assets, collateral to prevent Syriza reneging on the deal at a later date. Three-quarters of this will be sued to recapitalise the Greek banks and repay debt. International inspectors will have the power to veto legislation. The radical-Left Syriza government will be forced to repeal a raft of laws passed since it took power in January, stripping away the last fig leaf of sovereignty.

“It is unconditional surrender. We get serious austerity with no debt relief. We will have foreign supervisors crawling over everything,” said Costas Lapavitsas, a Syriza MP and one of 40 or so rebels who plan to abstain or vote against the deal, mostly from the Left Platform. “They are telling us that from now on, they are going to govern the country. I am afraid there is going to be a real fight about this. There is a groundswell of anger and it is now perfectly clear to a lot of people that the only way out of neo-colonial servitude is to break free of monetary union,” he said. The Independent Greeks party (ANEL) in the ruling coalition called the deal a “German coup” and said it would not have anything to do with it. The government is close to collapse.

Mr Tsipras gave in after being locked in all-night talks with German Chancellor Angela Merkel and French president Francois Hollande, an ordeal described by one EU official as psychological “water-boarding”. He was left with a grim choice as Greek banks ran out of cash and after two weeks of capital controls had brought industry to a halt. Food companies warned that the country will start to run out of beef and other imported meats within days and could face serious food shortages by the end of the month unless the banking system is reopened, and firms can pay foreign suppliers once again. The ECB has yet to lift its freeze on emergency liquidity for the Greek financial system. The banks will remain shut through Wednesday. Yanis Varoufakis, the former finance minister, said Greece had been forced to accept a latter day “Versailles Treaty” that will leave the country languishing in perma-slump for years to come.

The European disintegration is now underway. Gee thanks Angela.

[hill2016]

1. they

didn't have to take the money...

[Surya Gayatri]

2. Oh, don't be so practical...<sarcasm smilie on>

There are many European observers saying that this was a landmark moment for Europe. For the first time really, they've all come together to face an existential threat.

[randome]

3. Not before and not now.

Strange how the socialist paradise the current government flirted with was always dependent on handouts from someone else. What a fiasco for everyone involved.
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