Fast moving Events in Greece: Far left ascendant [View all]

[cthulu2016]

Last edited Tue May 15, 2012, 02:29 PM - Edit history (2)

Yesterday:

Greek leftists reject proposal for technocrat government
(Reuters) - ATHENS | Mon May 14, 2012 11:04pm BST

Greece's president will ask politicians on Tuesday to stand aside and let a government of technocrats steer the nation away from bankruptcy, but leftists have already rejected the proposal and look set to force a new election they reckon they can win.

http://uk.reuters.com/article/2012/05/14/uk-greece-idUKBRE8440DC20120514

Today:

Greece calls new elections after talks collapse
(Reuters) - ATHENS | Tue May 15, 2012 6:39pm BST

Greece abandoned a nine-day hunt for a government on Tuesday and called a new election that may hand victory to leftists who might cut the nation's financial lifeline, pushing it closer to bankruptcy and out of the euro zone.

After six rounds of fruitless wrangling, party leaders emerged from a final session at the presidential mansion to gloomily declare that deep divisions over a 130-billion-euro foreign bailout package had killed any hope of a coalition deal.

We shouldn't have reached this point," said Socialist leader Evangelos Venizelos, who personally negotiated the rescue package from the European Union and IMF which the hard left says has imposed too harsh an austerity regime. "For God's sake, let's move towards something better and not something worse."

Reviled for imposing deep wage and spending cuts but vital to keep the country running, the bailout worth $166 billion prompted Greeks to elect the most fragmented parliament in decades on May 6, giving no party or bloc a clear mandate.

...

http://uk.reuters.com/article/2012/05/15/uk-greece-idUKBRE8440DC20120515

Always odd, from an American perspective, to see the Socialists thrown out for being too far right. But since socialist isn't such a dirty word in Europe the socialists are fairly centrist. Note how the author casually distinguishes them from the hard left. (If Alan West wants to know the number of communists in the Greek parliament he can just look it up, rather than guessing.)

Here's what an outgoing Socialist minister had to say: “If Greece cannot meet its obligations and serve its debt the pain will be great,” (Outgoing Socialist Greek Minister for Citizen Protection ) Michalis Chrysohoidis was quoted as telling a local radio station. “What will prevail are armed gangs with Kalashnikovs and which one has the greatest number of Kalashnikovs will count … we will end up in civil war.”

The possible benefit of a Syriza (far-left coalition) win in the elections would be having the strongest possible negotiating position. Essentially a "mad bomber" strategy, in game theory terms. But that is only a benefit if Syriza then compromises from that position of strength. If Greece does get bounced from the euro it will be seriously bad for the Greek people in the short and medium terms.

[font color=green]Personal Plea: As with all major economic stories, it is natural to root for the banks and the rich to be laid low. And, as in all economic stories, it is impossible to really hurt the banks or the rich. One can merely wound their pride... make them a little less rich. JPMorgan just tossed away two billion dollars. Did anyone there miss any meals as a result? Meanwhile the people at the margins of society pay the highest cost of economic disruption. Always. That's the nature of being marginal. And consider this... all euro denominated debt in greece, including personal debt, consumer debt, mortgages, etc. will at least double in cost. Human costs may sometimes be justified to achieve an end, but they must never be taken lightly.[/font color]