Tag Archives: Syriza

Syriza split as elections loom

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Alexis Tsipras has become another austerity politician. Once the expression of the hopes of workers across Europe- Syriza have now joined the austerity consensus. Therefore the announcement that the left of Syriza are splitting to form a new party, Popular Unity, is to be welcomed.

Syriza were elected on a platform of reforms- promising to end the humanitarian crisis in Greece. But the leading members of Syriza believed that it was possible to both end austerity and save Greek capitalism- and this miracle was to be performed while remaining in the Eurozone.

The bullying of the EU exposed this political weakness and laid the basis for a complete capitulation by Tsipras. Syriza labour minister, George Katrougalos, said the government needed to “reconfirm its mandate” to implement austerity in the form of the third Greek bailout and that the party is “crippled by a number of dissident MPs”.

25 left MPs have quit to form the new party. The anti-capitalist coalition, Antarsya, of which the Greek SWP is part, has called for a united movement to oppose the bailout deal and the cuts. It’s vital that the new party links up with the anti-capitalists and helps to focus the battles ahead.

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Is Greece close to Grexit?

The Greek government is running out of time and money.

If it fails to come to a deal with eurozone partners to secure the final tranche of its bailout, there is a real chance it could default on its loans.

That could push the Greek government towards leaving the single currency, otherwise known as Grexit.

How bare are Greece’s coffers?

Without an urgent cash-for-fiscal reforms deal, the leftist Syriza government will run out of cash. And that deal needs to be agreed by the end of June, when Greece’s bailout deal with its eurozone creditors runs out.
Somehow, the money was scraped together to survive €1bn (£730m; $1.1bn) in debt payments to the International Monetary Fund in May, but Greece has already postponed June payments to the IMF and further hefty bills are due, to the IMF, European Central Bank and holders of short-term treasury bills.

The government in Athens has called on public sector bodies including hospitals to surrender any cash reserves they have.
The mayor of Greece’s second city, Thessaloniki, has already handed over millions.
Without at least part of the final €7.2bn slice of its giant EU-IMF bailout, Greece would almost certainly default on its debts.
Greeks see cash run out in undeclared default.

Can it stay afloat?

The message from Greece’s government is a resounding no. Quite simply it has too many debts to pay in too short a period.
At the start of June, Mr Tsipras’s government announced it would roll its four June payments to the IMF into one, giving it until the end of the month to find the necessary €1.5bn.
But it also needs to find another €2.2bn in June for public sector salaries, pensions and social security payments.

For a populist, left-wing party like Syriza, it would be unthinkable to pay its debts to creditors ahead of funding pensions for 2.6 million Greeks and some 600,000 civil servant salaries. It has already moved to re-employ 4,000 civil servants whom the previous government got rid of.
Greece’s last cash injection from its international creditors was in August, so the final €7.2bn instalment from its two EU-IMF bailouts, worth €240bn in total, is now seen as vital.
Even then Greece is likely to need a third bailout worth tens of billions. But if Greece’s reform package fails to satisfy its creditors, there will be no new cash.

Read more » BBC
See more » http://www.bbc.com/news/world-europe-32332221

Greece looks to China and Russia for help but cannot get around its euro zone partners

Running out of room

ALEXIS TSIPRAS, the Greek prime minister, and his radical Syriza party are beginning to feel the heat. Two months of bluster by Greece’s first left-wing government have failed to produce the results it wanted. Those include an injection of fresh cash from the country’s current €172 billion ($185 billion) bail-out programme, and a new deal with the European Union and the International Monetary Fund (IMF) that would allow Athens, not its creditors, to decide on future economic reforms.

Greece’s eurozone partners are still waiting for Athens to come up with details, promised two weeks ago, on the country’s deteriorating public finances. Mr Tsipras has promised Greek voters that Syriza has banned the hated “troika” of bail-out monitors (from the European Commission, the IMF and the European Central Bank) from Athens. To protect that political narrative, a team of mid-level officials from the three institutions sits ensconced in a four-star Athens hotel, gathering information by exchanging e-mails with their finance ministry counterparts. The ministry itself is strictly off-limits. “This system works quite well,” claims Dimitris Mardas, the budget minister. The visitors disagree, complaining about delays and inaccurate replies that could be avoided if they were allowed to meet Greek colleagues face-to-face.

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