This is a rush translation of Democracia Real YA’s announcement posted on Facebook earlier today.
WE ARE OUTRAGED!
WE EUROPEAN CITIZENS ARE ALL GREECE
The EC (Economic Community), the ECB (European Central Bank) and the IMF (International Monetary Fund) are putting all their bets on imposing a second bailout, one even tougher than the first, which was an utter failure, and which has sunk Greece’s economy even further.
The bailout of Greece in May 2010, Ireland in October 2010 and Portugal in May 2011 consists of the EC, ECB and IMF lending money at a very high interest rate of 5.5% and/or 6% (meanwhile Germany, for example will pay only 1.5% interest), in exchange for submitting citizens to anti-social adjustments that shrink their Welfare State, impoverishing them, in order to guarantee that they pay back the money loaned. For this, they have to continue paying ever higher interest rates to the financial markets, which are accelerating the ruin of their economy. The snake that eats its own tail.
The new bailout comes with an adjustment even more unjust and humiliating than the previous one. An economic manager from the EC summarizes it thus: “Let them privatise all of it, even the islands!” And why not the Parthenon? Is this the message they wish to transmit to the rest of the countries either bailed out or to be bailed out in future? To Spain and Italy?
But there is another mechanism for avoiding the bloodbath in Greece and in other potential candidates. IT IS CALLED RESTRUCTURING THE DEBT AGREED WITH THE PRIVATE CREDITOR BANKS(German and French, mainly). It simply consists of these banks not recovering part of the money loaned.
RESTRUCTURING? NEVER! This is what the governor of the ECB has declared (see EL PAIS DE LOS NEGOCIOS 05-06-11 http://bit.ly/j5yD4C). It could serve as a precedent for other countries bailed out,and for Spain.
Why have large European and international investment banks loaned so much money to bailed out countries, including Spain, and bought their public debt? They have done it due to HIGHER INTEREST RATES THAT THESE COUNTRIES HAVE BEEN PAYING.
This business of uncontrolled credit in speculative sectors and property bubbles has brought MASSIVE PROFITS to shareholders and executives, both in the creditor banks (German and French in the main) and in the debtor banks -succulent enterprises that have been allowed and encouraged by the economic authorities (EC, ECB and IMF).
Now that the financial crisis has exploded, these economic authorities have nothing to say about the insulting profits that banks and businesses continue to make, but they do not flinch when imposing neoliberal and antisocial policies on the citizenry, nor do they blush when THEY OPPOSE THE IDEA THAT PRIVATE BANKS, WHICH MAKE SO MUCH MONEY, SHOULD NOT GET PAID PART OF THE DEBT OF BAILED OUT COUNTRIES.
It seems that “tightening one’s belt” is for European citizens only and not for the banks.
The submissiveness -of the EC, ECB and IMF, and of European governments- to European and International Financial Power (Banks) is patent. This submissive will culminate in the approval, if the outraged European citizenry does put a stop to it, of the Euro Pact on 23-24 June in the European Parliament.
A Euro Pact or a Pact in favour of Financial Power is effectively a European regulation that orders all member states to control, via general budgets and caps on public debt, their levels of social spending, public investment and the maintenance of the Welfare State, with the purpose of guaranteeing the solvency of their financial entities and the payment of their debts; and to do so it orders measures such as:
- Raising the age of retirement;
- Linking salaries to productivity instead of price inflation;
- Hollowing out collective negotiation and rights of labour, such as hours worked, the working day, vacations and mobility, which business owners can alter and/or remove at a whim.
THIS 19th JUNE LET US TAKE THE STREETS THROUGHOUT ALL OF EUROPE AGAINST THE EURO PACT!
LET US FOLLOW THE EXAMPLE OF THE GREEK PEOPLE, AGAINST THE EUROPE OF THE FINANCIAL MARKETS!
FOR A SOCIAL EUROPE AT THE SERVICE OF THE CITIZENS AND NOT THE BANKS!