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s a t i o no fde bt ,a g a i ns tt hepo l i c i e st ha tc r e a t e di t ,a nd a g a i ns tt hei ns t i t ut i o nst ha ti mpo s e di t .Thep e o pl e ’ s fig ht ba c kmus tbea g a i ns tt heECBa ndt heEU. I ti si nt hi sc o nt e x tt ha tt heCPIha sc a l l e df o ra Eur o pe a nwi d es t r ug g l eo fpe o pl e ,t or i s eupa g a i ns tt he mo no po l ypo we rt ha te x i s t si nt hef o r mo ft heEUa ndt o r e c l a i mc o nt r o lo v e ro ure c o no mya ndd e v e l o pme nt .We c a nno tb ui l d ar e c o v e r yt ha tc r e a t e ss us t a i na bl ej o bs whi l ewea r es ub j e c tt ot hec o nd i t i o nsi mpo s e db yt heEU a ndI MF.

Theb a s i cc a us eo ft hea s s a ul twhi c h t he r ul i ng c l a s si na l lt he me mbe r s t a t e so ft heEU ha sunl e a s he do nt he i nc o mea ndr i g ht so ft hepe o pl eg o e s be y o ndt hema na g e me nto ft hee c o no mi cc r i s i sa ndpubl i cd e bt .Theba s i c g o a lo ft hea s s a ul ti st her e i nf o r c e me nt o ft hec o mpe t i t i v e ne s so ft hemo no po l y g r o upsi nt heEU.Fo rt hi sr e a s o nt he a nt i pe o pl ea t t a c ki sa p pa r e ntbo t hi n Ge r ma ny ,whi c h ha st e mpo r a r i l yl e f t t hec r i s i sp ha s ea nd ha sac o mpa r a t i v e l yl o we rpub l i cd e bt ,a swe l la si n Br i t a i n,whi c hi so ut s i det heEur o z o ne . A ba s i cg o a lo ft hea s s a ul ti st o e ns ur ec he a pe rl a bo urpo we ra ndpus h f o r wa r d t he r e s t r uc t ur i ng s whi c h a t t e mptt os t e mt het e nd e nc yf o rt he r a t eo fpr ot fio fb i gc a pi t a li nt heEUt o f a l l .Thec a pi t a l i s tp a t ho fd e v e l o pme nt pe r i o d i c a l l yl e a dst oc r i s e so fc a pi t a l o v e r a c c umul a t i o na ndma nybo ur g e o i s s t a t e st obe c o mehe a v i l yi nd e bt e d .The i de o l o g i c a ls t r ug g l ei nr e l a t i o nt ot he i nc r e a s eo ft hepubl i cd e btmus ti nt he fina la na l y s i shi g hl i g htt her o l eo ft he bo ur g e o i ss t a t ea nd t he mo no po l i e s , whi c hd e t e r mi ne pr o d uc t i o no nt he b a s i so fpr ot fi,t her o l eo ft heEUa sa n

Whi l et he r ei snop a i nf r e es o l ut i o n,s ho ul dweno ta t l e a s tt r yt ob ui l da ne c o no myf o rt hef ut ur ea ndf o rt he c o mmo ng o o d,unde ro uro wnt e r msa ndf o ro uro wn be net fi,no tf o rt ha to fmo no po l yc a pi t a l ? Asp a r to ft hi sc a l l ,t heCPIwr o t et oanumbe ro f f r a t e r na lp a r t i e si npe r i phe r a lEur o pef o rt he i rv i e wo n t hed e btc r i s i s .Wes ha r et he s ei no r d e rt oe nha nc et he d e ba t eo nt he l e f ta nd t os t r e ng t he nt he r e s i s t a nc e t hr o ug ho utEur o pet ot heo ns l a ug htl e dbyt heEur o pe a n Uni o n.

i nt e r s t a t ei mpe r i a l i s ta l l i a nc e ,a ndt he c a pi t a l i s tr e l a t i o nso fpr o d uc t i o n. The c a pi t a l i s tc r i s i si n Gr e e c ei s d e e pe ni ng .Thi si sac r i s i so fc a pi t a l o v e r a c c umul a t i o n whi c hi se x pr e s s e d b ya2 . 5 %r a t eo fr e d uc t i o no fGDPi n 2 0 0 9 ,4 . 5 %i n2 0 1 0 ,a ndi spr e d i c t e dt o e x c e e d3 . 5 % i n2 0 1 1 . Offic i a l une mpl o y me ntha sa l r e a d ye x c e e de d1 5 % a ndi se x pe c t e dt or e a c h2 0 % byt he e ndo ft hey e a r . Wi t hi nt hef r a me wo r ko ft hec a pi t a l i s tc r i s i spubl i cd e btha ss ky r o c ke t e d . Att hee ndo f2 0 1 0t heo v e r a l ls t a t e d e btha dr e a c he d€3 3 0bi l l i o n,c o r r e s po nd i ngt o1 4 4 %o fGDP,whi l ei n2 0 0 8 i twa s€2 6 2bi l l i o na nd1 1 0 . 6 %o fGDP, a ndi n2 0 0 9€2 9 8bi l l i o na nd1 2 7 %o f GDP. Thee x pl o s i o no fpubl i cd e btd uet o t hec r i s i si sc a us e db yt wof a c t o r s .On t heo neha ndi ti sd uet ot hema s s i v e s t a t e s uppo r t p a c ka g e s t o t he mo no po l yg r o upsa ndt her e d uc t i o no f t a xi nc o mea ndGDP whi c hha sbe e n o bs e r v e dd uet ot hee c o no mi cc r i s i s . Pr i v a t ed e bti nt heba nki ngs e c t o r ha sr e a c he d €2 5 7 bi l l i o n,o fwhi c h €1 3 9b i l l i o ni sc o mpa nyd e bta nd€1 1 8 2

b i l l i o ni sho us e ho l dd e bt .Theo v e r a l l f o r e i g nd e bto ft heba nki ngs e c t o ri s €2 0 2b i l l i o n.Theo v e r a l ld e bti sa bo ut €7 9 0bi l l i o n.Theo v e r a l lf o r e i g nd e bti s €4 1 0bi l l i o n. Theba s i cc a us eo ft hec r e a t i o no f t hepubl i cd e bti st hee x t e ns i v es uppo r t o ft he Gr e e ks t a t ef o ra s e r i e so f mo no po l yg r o upsi no r d e rt os a f e g ua r d a ndma i nt a i nt he i rpr ot fia bi l i t y . Thefis c a ld e r a i l me nto fGr e e c ed o e s no td e mo ns t r a t et hel a c ko fma na g e me nta bi l i t yo ft heo neo rt heo t he r g o v e r nme nt but une v e n c a pi t a l i s t d e v e l o pme nti nt hev a r i o usc o unt r i e so f t heEur o z o ne .Thee x po s ur eo fGr e e k ma nuf a c t ur i ng bus i ne s s e s ( l e s s d e v e l o pe d a nd c o mpe t i t i v e )t o a s ha r pe ne d c o mpe t i t i o n wi t hi n t he f r a me wo r ko ft heEur o z o neme a ntt ha t t he yr e qui r e dmo r es uppo r tf r o mt he bo ur g e o i ss t a t ei no r d e rt os a f e g ua r d t he i rpr ot fia bi l i t y . Theme c ha ni s mf o rt hee x pa ns i o no f t he d e btwa st he bo r r o wi ng o ft he g o v e r nme ntt oc o v e rt hebud g e td ec fii t o ft hes t a t ebud g e t .Thes t a t e ’ ss uppo r t f o r t he mo no po l y g r o ups wa s c o nd uc t e d


( 1 )d i r e c t l y ,i nt hef o r mo ffina nc i a l s ubs i d i e st hr o ug hd e v e l o pme ntl e g i s l a t i o n,i nt hef o r mo fs ubs i d i s i ngs o c i a l s e c ur i t yc o nt r i but i o ns ,i nt hef o r mo f l o wi nt e r e s ta ndno i nt e r e s tl o a nsf o r ma j o rwo r ks ,i nt hef o r mo fc o nc e s s i o ns o fpubl i cwo r ks —r o a d ne t wo r kse t c . , c o ns t r uc t e d ma i nl yt hr o ug h pub l i c f undi ng —t ot he pr i v a t ec o r po r a t i o ns f o re x pl o i t a t i o na nd ( 2 )i nd i r e c t l yi nt hef o r mo fr e duc e d t a xr a t e sa nds pe c i a lt a xe x e mpt i o ns ( t he t a x a t i o no fs hi ppi ng c a pi t a li s mi ni ma l ,whi l et het a x a t i o no ff ue lf o r t hes hi po wne r si sa l s ov e r yl o wa nd t het a xr a t ef o rc a pi t a lwa sr e d uc e d f r o m4 5 %t o2 5 %) ,i nt hef o r mo fa s e r i e so ff a v o ur a bl e pr o v i s i o ns f o r t a x a t i o ne t c . Thi ss t a t es uppo r ti sd e mo ns t r a t e d i nt he pr ot fia bi l i t yo fc a pi t a l ,whi c h o nl yi nt hes e v e ny e a r sbe f o r et hec r i s i s r e c o r d e dpr ot fiso fo v e r$ 7 0b i l l i o n.I n a d d i t i o n,i npr e v i o usde c a d e s( ma i nl y i nt he 1 9 8 0 s )t he phe no me no no f na t i o na l i s i ngpr i v a t ee nt e r pr i s e swhi c h ha da c c umul a t e dl a r g ed e bt sc o nt r i but e dt ot hec r e a t i o no ft hepubl i c d e bt . Att hebe g i nni ngo ft hefir s td e c a d e o ft hene wmi l l e nni um,pub l i cde btha d r e a c he d€1 4 6bi l l i o n,whi l ea tt hee nd o ft hed e c a d epubl i cd e btha de x c e e d e d €3 4 3b i l l i o n.Wi t hi nt hes a med e c a d e t heGr e e ks t a t eha dp a i d ,i nt hef o r mo f i nt e r e s t ,€1 1 4bi l l i o n,e ns ur i ngf o ri t s c r e d i t o r s , t he b a nki ng mo no po l y g r o ups ,f o r e i g na ndd o me s t i c ,ma s s i v e pr ot fis .I nt hes a mepe r i o d ,i nt hePr o g r a mmeo fPub l i cI nv e s t me nt ,o v e r€9 b i l l i o nwe r ee x pe nd e d.Te nso fbi l l i o ns o fe ur o so fs ubs i d i e swe r epr o v i d e df o r t he mo no po l yg r o ups t hr o ug ht he Co mmuni t ySuppo r tFr a me wo r ks ,t he Na t i o na lSt r a t e g i c Re f e r e nc e Fr a me wo r k,a ndt hec o nt r a c t sf o rt hec o nc e s s i o no fpubl i cwo r ks .A l a r g epo r t i o n wa s i nv e s t e d i n “ no npr o duc t i v e ” i nv e s t me nt s( e . g .i nv e s t me nt sf o rt he Ol y mpi cGa me si n2 0 0 4 ,f o rwhi c ho v e r €1 0bi l l i o n we r es pe nt ) .I na d di t i o n, e v e nt hei nv e s t me nt sf o rt hec o ns t r uc t i o no fpub l i cwo r kswe r ec a r r i e do ut o nt heba s i so fc a pi t a l i s tpr ot fia bi l i t y a ndt hes t r a t e g i cc ho i c e so ft heEUa nd no tf o rt hes a t i s f a c t i o no ft hee x pa nd e d ne e d so ft hepe o pl e . Ofc o ur s et he€9 1b i l l i o ni so nl yt he t i po ft hei c e be r g .Wemus ta ddt ot hi s a mo untt e nso fb i l l i o nso fe ur o so fs t a t e mo ne ys pe nto nt he i nv e s t me nt so f s t a t ee nt e r pr i s e swhi c ha r ec e d e dt ob i g c a pi t a lf o rap l a t eo fbe a ns .Po s s i bl yt he mo s tc ha r a c t e r i s t i ce x a mpl eo ft hi swa s t he€9 . 1bi l l i o no fOSE’ sd e bt( r a i l wa y t r a ns po r t ) ,t hel a r g e s tpa r to fwhi c hi s r e l a t e dt ot hec o ns t r uc t i o no ft her a i l wa yne t wo r k—c o ns t r uc t i o nwhi c hwa s c a r r i e do uto nt heba s i so ft hepr ot fia bi l i t yo ft hec o ns t r uc t i o nmo no po l i e s ,

s e c ur i ng hug e pr ot fisf r o m t he c o ns t r uc t i o no ft hel i ne s ,a ndo nt heba s i s o ft he pr ot fia bi l i t yo ft he b a nki ng g r o upswhi c he ns ur e dpr ot fisf o rt he ms e l v e st hr o ug hl e nd i ng .Thei na flt i o no f t he s t a t ed e bt i nt he l a s td e c a d e i nc l ud e so v e r€1 2b i l l i o no fs pe nd i ng o nd e f e nc ea r ma me nt ,a ni mpo r t a nt s e c t i o no fwhi c ha r ewe a po nss y s t e ms d e s t i ne df o rNATOr e l a t e dne e d s . TheGr e e kbo ur g e o i ss t a t ebo r r o we d f r o mt hedo me s t i ca ndf o r e i g nma r ke t , f r o mt heba nki ngg r o upsa tho mea nd a br o a d ,f r o mf o r e i g ni ns ur a nc eg r o ups a ndf r o mt hes o c i a l s e c ur i t yf und so f t hed o me s t i cma r ke t . I na d d i t i o n,i tbo r r o we df r o mt he t e mpo r a r ys up po r tme c ha ni s mo ft he EU a ndf r o mt heI MF.4 5 –5 0 %o ft he s t a t ed e bti st of o r e i g n ba nki nga nd i ns ur a nc eg r o ups ;1 5 –2 0 %i sduet o l o a ns ,c hi ey flf r o mt heEur o pe a nSuppo r t Me c ha ni s m,2 0 –2 5 % t o Gr e e k b a nksa nd 1 0 –1 5 %t os o c i a l s e c ur i t y f und si nGr e e c e . Ani mpo r t a nts e c t i o no ft hebo ndso f t he Gr e e k publ i cs e c t o r ha v e be e n d e po s i t e da ss e c ur i t yf o rl i qui d i t yi n t heECB,bo t hf o rGr e e ka ndf o r e i g n b a nks . Pa r t i c ul a r l yf o rb a nki ng g r o ups , t he i rd i r e c te x po s ur ewi t hi nt heo v e r a l l Gr e e kd e bt( publ i ca nd p r i v a t e )ha s r e a c he d €1 2 0b i l l i o n,whi l et o g e t he r wi t ht hes e c ur i t i e swhi c h ha v ebe e n i s s ue dt he i rt o t a le x po s ur ewi t hi nt he Gr e e kd e btr e a c he s€2 0 0b i l l i o n.Of t he s e ,t heb a nki ngg r o upso fFr a nc e c o mpr i s e3 2 %o ft het o t a le x po s ur e , Ge r ma no ne s2 5 %. I ti sc a l c ul a t e dt ha t2 0 –2 5 %o ft he s t a t et i t l e swhi c ha r ef o unda br o a da r e i ni ns ur a nc eg r o ups ,3 0 –3 5 %i nba nki ngg r o ups ,2 0 –2 5 %i ns o c i a l s e c ur i t y f und sa nd1 5 %i nmo ne t a r ya ut ho r i t i e s . Mo no po l yg r o upsf r o m Fr a nc epo s s e s s 2 8 %,f r o m Ge r ma ny1 4 %,f r o m Ho l l a nd 7 . 5 %,f r o m Lux e mbo ur g ,Be l g i um a nd I t a l ya bo ut6 %, f r o mI r e l a nd4 . 2 %. Thel a r g e s tpa r to ft hes t a t ed e bt wa sut i l i s e df o rt hepr ot fia bi l i t yo ft he mo no po l yg r o ups .Thet a ki ngo no ft he d e bt so ft hemo no po l yg r o upsbyt he s t a t es ot ha tt he i rb a nkr upt c yc o ul dbe a v o i d e dha p pe ne di np r e v i o usy e a r sa s we l l ,buti t sc o nt r i but i o nt ot hee no r mo usg r o wt ho ft he s t a t ed e btwa s s ma l l e r t ha n i n o t he r c a pi t a l i s t c o unt r i e ss uc ha sI r e l a nd . Thepo s s i bi l i t yt ha tne wd e bt swi l l bea c c umul a t e d by t he s t a t ema i nl y f r o mt heb a nki ngg r o upsi sr e a l .The s t a t es e c ur i t i e si nt he no nb a nki ng s e c t o r ha v er e a c he d$ 2 6b i l l i o n.I n a d d i t i o n,t he s t a t es e c ur i t i e st ot he b a nki ngs e c t o ra ppr o a c h €8 5bi l l i o n, r a i s i ng t he o v e r a l ll e v e lo fs t a t e s e c ur i t i e s , whi c ht he publ i cs e c t o r c o ul dbepo t e nt i a l l yc a l l e do nt or e pa y , t oa bo ut€1 1 0b i l l i o n. 3

TheEur o pe a nCe nt r a lBa nki sa n e s s e nt i a lp i l l a ro fs uppo r ts ot ha tt he uni t e d mo ne t a r y po l i c yo ft heEur o z o nec a nbei mpl e me nt e d ,t ha ti st os a y i ts e r v e st he s t r a t e g yo ft he EU. Ano t he r t o o l whi c h s e r v e s t he s e po l i c i e si st heSt a bi l i t yPa c ta saf r a me wo r kf o rt hes upe r v i s i o no ft hena t i o na l g o v e r nme nt si nr e g a r d st ot hefis c a l po l i c ywhi c ht heme mbe r s t a t e sf o l l o w. Tobe g i nwi t h,wemus tno tf o r g e t t ha tt hec o mmo nmo ne t a r ypo l i c ya nd t hee ur oc o ns t i t ut eme a nso fwe l d i ng t o g e t he rt he e c o no mi e so ft he EU me mbe r s t a t e s , whi c h ha v e une v e n l e v e l so fpr o d uc t i v i t y ,i nd us t r i a lpr o d uc t i o na nd mo r eg e ne r a ld e v e l o pme nt .Une v e nd e v e l o pme nta nd t he une v e nr e l a t i o nsbe t we e nt heme mbe r s t a t e sa r ei nt r i ns i ct ot hena t ur eo ft he EUa sa ni nt e r s t a t ei mpe r i a l i s ta l l i a nc e . The“ d e mo c r a t i cc o nt r o l ”o ft heECB c o ns t i t ut e sa g o a lwhi c hc o mp l e t e l y v i o l a t e st her e l a t i o ns hi pbe t we e ne c o no mi c sa nd po l i t i c s .Theo nl y ne g o t i a t i o n whi c hc a nt a kepl a c er e g a r d i ng t hea d mi ni s t r a t i o no ft heECB i so ne t ha t wo ul d d e mo ns t r a t e t he r e a l b a l a nc e o f po we r be t we e n t he bo ur g e o i sme mbe r s t a t e s .Thi sne g o t i a t i o nd o e sno tc o nc e r nt hes a t i s f a c t i o n o ft hepe o pl e ’ sne e d sa ndt hel a bo ur mo v e me nt . Ov e rt her e c e ntpe r i o dt heECBha s be e nl i nke dwi t ht hed i s c us s i o no nt he r o l eo ft heEur o pe a nSuppo r tMe c ha ni s m.Thi ss pe c i ficme c ha ni s mc a nno t d e a lwi t ht hec a us eo ft hec r i s i so fo v e r a c c umul a t i o no rwi t ht hei nt e ns i t yo f une v e nne s swi t hi nt he Eur o z o ne .I t a i msa ts ho r i ngupt hee ur o ,s uppo r t i ngt heba nki ngg r o upswhi c ha r et he c r e d i t o r so ft hehe a v i l yi nd e bt e ds t a t e s ( Ge r ma n,Fr e nc hba nkse t c . ) . The bo ur g e o i sd i s a g r e e me nt sc o nc e r ni ngt her o l eo ft heme c ha ni s ma r e a l s or e l a t e dt ot hec o nt r o l l e dd e pr e c i a t i o no fc a pi t a l ,t hed i s t r i but i o no ft he l o s s e sa mo ng s tt hei mpe r i a l i s ts t a t e s a ndmo no po l yg r o upsi nt hefina nc i a l s e c t o r .Thi ss t r ug g l ea l s oha sno t hi ng t od owi t ht hewo r ki ngc l a s s . The KKE [ Co mmuni s t Pa r t yo f Gr e e c e ]s t r e s s e st ha tt hepe o p l ea r eno t r e s po ns i bl ef o rt hema s s i v ei nc r e a s eo f t hepubl i cd e bt ,no rd i dt he ybe net fii n t hepr e v i o usy e a r s ,a ndf o rt hi sr e a s o n t he ys ho ul dno tpa yf o ra ny t hi ng .At t hes a met i mei tma ke si tc l e a rt ha tt he r e a lc a us eo ft hee s c a l a t i o no ft hea nt i pe o pl e a s s a ul t g o e s be y o nd t he ma na g e me nto ft hepubl i cd e bta ndha s t od o wi t ht he s t r a t e g i cc ho i c et o r e d uc et hec o s to fl a bo urpo we ri nt he EU i no r d e rt os a f e g ua r dt hepr ot fia bi l i t yo ft hemo no po l i e s .Thewo r ki ng c l a s si so nt her e c e i v i ng e nd o ft he a s s a ul tno to nl yi nt hec o unt r i e swhi c h ha v ebo r r o we dbuta l s oi nt ho s ewhi c h ha v el e ntmo ne y .


The de ma nd f o rt he “ pe o pl et o r e f us et opa yt hed e bt ”c o ul dc o nt r i but e t ot hee s c a l a t i o no ft hes t r ug g l eo nl yi f i ti si nc l ud e di napo l i t i c a ll i neo fo v e r t hr o wi nr e l a t i o nt ot hepo we ro ft he bo ur g e o i sc l a s s . The r ec o ul d be a r e f us a lt opa yt hed e btwhi c hwo ul dbe i nt hepe o pl e ’ si nt e r e s t si nt hec o nd i t i o nso fs o c i a l i s tpo we ra ndt hewi t hd r a wa lo fGr e e c ef r o mt heEU.Ont he c o nt r a r y ,i nc o nd i t i o ns o fc a pi t a l i s t po we rt he“ r e f us a lt op a yt hed e bt ” c o ul dbeus e dbyabo ur g e o i sg o v e r nme nta tt hee x pe ns eo ft hepe o pl e ,a s t he e x a mpl eo f Ar g e nt i na d e mo ns t r a t e s . The l a wo fune v e nd e v e l o pme nt i mpa c t swi t hi nt heEU,f o re x a mpl e Ge r ma nywa st hebi gwi nne ri nt he d e c a d ea f t e rt hef o r ma t i o no ft heEur o z o ne .The ma s s i v ei nc r e a s eo ft he

publ i cd e bto fs o meme mbe r s t a t e sc o ns t i t ut e s ,a sweme nt i o ne de a r l i e r ,o ne o ft hec o ns e que nc e so ft hi ss i t ua t i o n. TheEU mo r eg e ne r a l l yc o ns t i t ut e sa n i mpe r i a l i s ta l l i a nc eo fme mbe r s t a t e s , wi t hd e e p une v e nne s sa mo ng s tt he m r e g a r di ng t he d e v e l o pme nt o f i nd us t r i a l s e c t o r s , c o mpe t i t i v e ne s s , po l i t i c a la ndmi l i t a r ys t r e ng t h. I ti so fpa r t i c ul a ri mpo r t a nc ef o ri t t obeund e r s t o o dt ha tt heune v e nr e l a t i o ns be t we e n s t a t e sa nd une v e n d e v e l o pme nt a r e i nt r i ns i c t o t he i mpe r i a l i s ts y s t e m.I tmus tbet a ke no n bo a r dt ha ta l lt hebo ur g e o i sc l a s s e si n t heEU a r ej o i nt l yr e s po ns i bl ef o rt he e s c a l a t i o no ft he a s s a ul ta g a i ns tt he wo r ki ngc l a s s .Fo rt hi sr e a s o nt heKKE i sa g a i ns ta nya l l i a nc eo ft hel a bo ur mo v e me ntwi t ht heGr e e k bo ur g e o i s c l a s ss ot ha tt hef o r e i g nmo no po l i e sd o

no tbe c o med o mi na nt .Thi spr o po s a lo f c o o pe r a t i o ni mpe d e st heo ppo s i t i o no f t hepe o pl ei nr e l a t i o nt oi t so wnr ul i ng c l a s s . Thei l l us i o nt ha tac a pi t a l i s tc o unt r y o ut s i det heEur o z o neo rwi t har e duc e d pub l i cd e btc a ng ua r a nt e ep r o s pe r i t y f o rt hepe o pl emus tbes ma s he d .We s ho ul dl o o ka tt hee x a mpl e so fBr i t a i n, Swe de na nd De nma r kt ol e a r nt hi s l e s s o n. The s l o g a n whi c hc a nr a l l yt he pe o pl e si nar e v o l ut i o na r yd i r e c t i o ni n t hewe a kl i nksi nt heEur o z o nei s“ d i s e ng a g e me ntf r o mt heEU a ndc a nc e l l a t i o no ft hed e btbyme a nso fpo pul a r ( s o c i a l i s t ) po we r . ” The g o a lo ft he “ d i s e ng a g e me ntf r o mt heEU”i nc l ude d i napo l i t i c a ll i neo fo v e r t hr o w mus t c o ns t i t ut eag o a lo fs t r ug g l ef o ra l lt he pe o pl e so ft heEUme mbe r s t a t e s .

P o r t u g u e s eC o mmu n i s tP a r t y The PCP ha sl o ng d e no unc e do ur c o unt r y ’ sne tf o r e i g nde bta so neo ft he mo r ev i s i bl er e s ul t so ft hepo l i c yo f na t i o na ld i s a s t e rt ha tt hePS[ So c i a l i s t Pa r t y ] ,PSD [ So c i a l De mo c r a t i cPa r t y ] a nd CDS [ De mo c r a t i ca nd So c i a l Ce nt r e ]ha v ei mpo s e do nPo r t ug a lf o r t hep a s tt hi r t y fiv ey e a r s . Thi sd e bt ,publ i ca ndpr i v a t e ,wi t h t hepr i v a t ed e btbe i nghi g he rt ha nt he publ i cd e bta ndwhi c h,a tt hee ndo f 2 0 1 0 ,r e pr e s e nt e di nne tt e r ms1 0 7 %o f GDP,whi l ei n1 9 9 6i td i dno te v e n r e a c h1 0 %o fGDP. Thepr i v a t ed e bt ,whi c hd e s pi t et he St a t eg e t t i ngd e e pe ri nt od e btt os a v e t hepr i v a t efina nc i a ls e c t o r ,c o nt i nue s t or e pr e s e nta tl e a s t6 7 . 2 %o fo urg r o s s f o r e i g nd e bt ,whi c ho ni t spa r t ,a tt he e ndo f2 0 1 0 ,r e pr e s e nt e da r o und2 3 8 % o fGDP.Thi spr i v a t ed e bt ,i nwhi c ht he fina nc i a ls e c t o rwe i g he da r o und7 0 %, g r e wa sar e s ul to fj o i ni ngt heEur oa s t he fina nc i a ls e c t o re x c ha ng e dt he a t t r a c t i o n o fd o me s t i cs a v i ng sf o r f o r e i g n ba nk c r e d i t ,whi c h wa sa v a i l a bl ea tl o wi nt e r e s tr a t e s . Thi sg r o wt ho ff o r e i g ni nd e bt e d ne s s o fo urc o unt r yi si ns e pa r a bl ef r o md e i nd us t r i a l i s a t i o n,f r o m t he a ba nd o nme nto fo ura g r i c ul t ur ea nd fis hi ng s e c t o r s ,f r o m as t r o ngd r o pi nna t i o na l pr o d uc t i o n,f r o m i nc r e a s e d pr i v a t i s a t i o ns ,f r o ms ubmi s s i o nt oEU i mpo s i t i o nsa ndt obi gna t i o na la ndi nt e r na t i o na lc a p i t a l . I no ur v i e w,t hi s hi g hl e v e lo f i nd e bt e dne s sd i dno tr e s ul tf r o mo ur pe o pl e“ l i v i ngbe y o ndt he i rme a ns , ”a s

t hene o l i be r a lr i g hta ndt hePSt r yt o ma ke be l i e v e , but f r o m t he hug e i nc r e a s ei no ur f o r e i g n de pe nd e nc e whi c ho c c ur r e da f t e ro urj o i ni ngt he Eur oa nd t he s ubo r di na t i o nt ot he e c o no mi ca ndfina nc i a lg r o ups . Wi t h t he i nde bt e d ne s s o ft he c o unt r yt ho s ewhoi mpo s e dt hee x t i nc t i o no fo urpr o duc t i v ea ppa r a t us —l i ke Fr a nc ea nd Ge r ma ny —g a i ne da swe we r ef o r c e dt obuywha tt hec o unt r y ha dc e a s e dt opr o d uc e . Wi t h t he i nde bt e d ne s s o ft he c o unt r yt heb a nke r s ,who s el o s s e st he St a t ec l e a ne d( l i keBPPa ndBPN)a nd put f o r wa r dg ua r a nt e e s ,g a i ne d by c ha ng i ngt he i rpr i v a t ed e bti nt opubl i c d e bt ,a ndt he nd i s t r i but i ngt he s es a c r i fic e sa mo ng t he wo r ke r sa nd t he pe o pl e . Wi t h t he i nde bt e d ne s s o ft he c o unt r yt he b a nks f r o m Ge r ma ny , Eng l a nd , Spa i n, Fr a nc e a nd a l s o Po r t ug a lg a i ne d ,whos c a nd a l o us l yg e t fina nc i a ll o a nsf r o mt heECB a t1 % i nt e r e s tr a t e sa ndl a t e rbuypubl i cd e bt , c o l l e c t i ng6 %,7 %a nde v e n8 %f r o m t hePo r t ug ue s eSt a t e ,i na ni l l e g i t i ma t e us ur pa t i o no fna t i o na lr e s o ur c e s . Asar e s ul to ft hi si nd e bt e d ne s s ,t he c o mpl i c i t ya nd r o l eo ft heEur o pe a n Uni o na nd t he f r a me wo r kr e s ul t i ng f r o mc a pi t a l i s m’ sna t ur ea ndf unc t i o ni ng ,Po r t ug a lt o d a yf a c e sa nunbe a r a bl e a ndi l l e g i t i ma t epr o c e s so fe x t o r t i o no f i t sna t ur a lr e s o ur c e sb yme a nso ft he wo r s e ni ng o ft he i nt e r e s to nt he Po r t ug ue s epubl i cd e bt . Thi si sapr o c e s swhi c ho c c ur swi t h 4

t hec o mpl i c i t ya nda c t i v er o l eo ft he Eur o pe a n Uni o n whi c h,e ng a g e di n g ua r a nt e e i ngt hei nt e r e s to ft hefina nc i a lc a pi t a la ndo ft hebi gpo we r s( pa r t i c ul a r l yGe r ma ny ) ,c o nni v e swi t ht hi s s pe c ul a t i v e wa v e , whe n t he r ea r e c o nd i t i o ns —e v e ni nt hec ur r e ntpo l i t i c a la ndi ns t i t ut i o na lc o nt e x t —t oputa n e ndt oi t .I ns t e a d ,t heEUs uppo r t st he I MF’ sc o nc e pt sa ndpo l i c i e s ,c a l l i ngi t t he Eur o pe a n Fi na nc i a lSt a bi l i s a t i o n Fa c i l i t y ,wi t hd e v a s t a t i ng ee ffc t si n s e v e r a lc o unt r i e s —l i ke Gr e e c ea nd I r e l a nd —whe r et her e s ul t swe r equi t e v i s i bl e wi t ha ni nc r e a s ei ni nt e r e s t r a t e s ,wo r s e ni ngo fe c o no mi cr e c e s s i o n, g r o wt hi nune mpl o y me nta ndi ns o c i a l i nj us t i c e . Po r t ug a lc a nno ta c c e p tt ha tt ho s e whobe net fie dmo s tf r o mt hepr o c e s so f o ur c o unt r y ’ s i nd e bt e dne s s —bi g na t i o na la nd f o r e i g nc a pi t a l —s ho ul d d i c t a t et he wa ya nd c o nd i t i o ns o n whi c ho urc o unt r yi sbe i ngl o o t e d . ThePCP be l i e v e st ha tt he r ei sno o t he ra ns we rbutafir mr e f us a lo ft hi s c o ur s eo f“ a us t e r i t y ”e i t he rv i aSGP,o r v i aI MF.Thea ns we rc a nno tbeo t he r t ha nac l e a ra ffir ma t i o nt ha tPo r t ug a l c a nno tc o nt i nue t o pa yl o a ns ha r k i nt e r e s ta nd r e ma i n av i c t i mo ft he s pe c ul a t o r s ,no wc a l l e dma r ke t s . I nv i e wo ft hec r e a t e duns us t a i na bl e s i t ua t i o na ndi t spo s s i bl ed e v e l o pme nt s i nt hec o mi ngt i me s ,t hePCPc o ns i de r s t ha tt hePo r t ug ue s eSt a t es ho ul dr upt ur et hec ur r e ntpo l i c y , t hr o ug h: •An i mme d i a t er e ne g o t i a t i o no f t hec ur r e ntPo r t ug ue s epubl i cd e bt —


wi t h ar e a s s e s s me nt o ft he t e r ms , i nt e r e s tr a t e sa ndpa y a bl ea mo unt s —t o unbur d e nt heSt a t ef r o mt hewe i g ht a ndeo ffr to ft hepr e s e ntd e bts e r v i c i ng c o s t sa ndc ha nne lr e s o ur c e st opr o mo t e pr o d uc t i v ei nv e s t me nt ,c r e a t ej o bsa nd pr o v i d ef o rt he o t he r ne e d so ft he c o unt r y . •Ac twi t ho t he rc o unt r i e sf a c i ng s i mi l a r pr o bl e ms o f pub l i cd e bt — Gr e e c e ,I r e l a nd ,Spa i n,I t a l y ,Be l g i um, e t c . —a i mi nga taj o i nta c t i o nt ohi nd e r t hec ur r e nts pe c ul a t i v es pi r a l ,t o g e t he r wi t h ar e v i s i o no ft he s t a t ut e sa nd o bj e c t i v e so ft heECBa ndt hea d o pt i o n o f me a s ur e s a i mi ng a te c o no mi c g r o wt h,c r e a t i o no fj o bsa ndi mpr o v e me nto fwa g e s .

•Ad o pt i o no fa po l i c ya i me da t e c o no mi cg r o wt hwi t ht hed e f e nc ea nd pr o mo t i o no fna t i o na lpr o duc t i o npl a y i ng a l e a d i ng r o l e —pr o d uc ei nc r e a s i ng l y mo r et oo wei nc r e a s i ng l yl e s s . Ta ket her i g htme a s ur e st os t r e ng t he n publ i ci nv e s t me nt , be t t i ng o n pr o d uc i ngma r ke t a bl eg o o d sa nda ne x c e pt i o na lf r a me wo r kt oc o nt r o lt hee nt r y o fg o o d si nt o Po r t ug a l ,t or e pl a c e i mpo r t s . •The d i v e r s i fic a t i o n o ff und i ng s o ur c e s ,r e s umi nga na c t i v epo l i c yo f i s s ui ngSa v i ng sa ndTr e a s ur yCe r t i fic a t e sa ndo t he ri ns t r ume nt st oa t t r a c t na t i o na lf a mi l ys a v i ng s ,a s we l la s und e r t a ki ngb i l a t e r a lr e l a t i o nst ofind mo r ea d v a nt a g e o usf o r mso ff und i ng .A

po l i c yo fd i v e r s i fic a t i o na l s oi nt r a d e r e l a t i o ns ,mut ua l l ya d v a nt a g e o us ,wi t h o t he rc o unt r i e s ,na me l yf r o m Af r i c a , As i aa ndLa t i nAme r i c a . ThePo r t ug ue s ewo r ke r sa ndpe o pl e c a nno tc o nt i nue t of e e dt he hug e pr ot fis o ft he ba nks wi t ho bs c e ne i nt e r e s t ,no rs a v et hes ha r e ho l d e r so f b a nkr uptb a nksa swa st hec a s eo fBPN a ndBPP. ThePo r t ug ue s ewo r ke r sa ndpe o pl e c a nno tc o nt i nuet oma kes a c r i fic e st o fil lt hepo c ke t so ft hes pe c ul a t o r sa nd b a nks ,whi l et hec o unt r ypl ung e si nt o e c o no mi c r e c e s s i o n, une mpl o y me nt g r o wsa ndt hec o s to fl i v i ngi nc r e a s e s .

Publ i cd e bti nSpa i nwi l lr e a c h6 8 . 7 % o fGDP i n2 0 1 1 .Pr i v a t ed e bt ha s r e ma i ne da ti t s2 0 0 8l e v e l ,whe ni t r e a c he d€1 , 8 5 0 , 0 0 0mi l l i o n,t ha ti st o s a y1 9 0 %o fGDP.Putt o g e t he ra ndt he d e btl e v e li nSpa i ni si nt her e g i o no f 2 6 0 %o fGDP. Asaf e de r a ls t a t et hepubl i cd e bti s ha l fd uet ot heSt a t eCe nt r a la d mi ni s t r a t i o na nd t he o t he r ha l ft ot he r e g i o na la dmi ni s t r a t i o ns .Pr i v a t ede bt i sma i nl yd uet ot hebui l d i ngs e c t o r , whe r ewewe r ebui l d i ng7 0 0 , 0 0 0ho us e s pe ry e a ra tt hehe i g hto ft hefina nc e s pe c ul a t i o nbubbl e .Thi spr i v a t ede bt wa sma i nl ybo r r o we df r o mt heEur o pe a np r i v a t efina nc es e c t o r ,a ndma i nl y f r o m Ge r ma n b a nks a nd fina nc e ho us e s . Co r po r a t ed e bti nSpa i ni so neo f t hel a r g e s t( 1 4 7 %o fGDP)i nt hewo r l d , wi t hPo r t ug a l ,I t a l y ,Ko r e a ,Ho ngKo ng a nd Ma l a y s i a .The Go v e r nme ntha s g i v e nt ot heba nks y s t e m mo r et ha n €1 0 0 , 0 0 0 mi l l i o ns but ha s no t na t i o na l i s e dt he m.The bul ko ft hi s pr i v a t ed e bti sc o mi ng f r o m s a v i ng b a nksa ndfina nc i a lba nksd uet ot he bui l di ng i nd us t r ya nd t hel o a nsa nd mo r t g a g es y s t e m( pr o pe r t ybo o m) . TheECBi st r y i ngt oke e pi na flt i o n und e rt heMa a s t r i c hta g r e e me ntl e v e l

t hr o ug h mo ne t a r y me a s ur e sl i ket he pr i c eo ft heEur o ,a nda l s ot hec o nt r o l o ft hepubl i cd ec fii t .The r ei sno t hi ng a bo ute mpl o y me nto rg i v i ngl o a nst o i nd us t r yo rt oo t he re c o no mi cmo d e l s . We a r es t r o ng l y i n f a v o ur o f na t i o na l i s i ngt heba nki ngs y s t e m.We c r i t i c i s et hea mo unto fpubl i cmo ne y g i v e nt ot hepr i v a t eb a nki ng s y s t e m whi l ei tr e ma i ns pr i v a t ea nd whi l e no t hi ngi sg i v e nt oune mpl o y e dpe o pl e o ri nv e s t e di nj o bc r e a t i o n.We a r e a g a i ns tt heg o v e r nme ntpo l i c yo ft r a ns f e r r i ngpubl i cfina nc e st ot hepr i v a t e s y s t e m.Thec r i s i sha sbe e nc r e a t e dby t hepr i v a t efina nc es y s t e m,no tb yt he wo r ki ngc l a s s ,a ndwed ono twa ntt o p a yt hec o s to ft hec r i s i s . Thi sc r i s i si sg l o ba l ,a ndnoc o unt r y i si nas a f epo s i t i o nd uet ot hei nt i ma t e l i nkbe t we e nt hed ie ffr e nte c o no mi e s . Theque s t i o nwo ul dbeho wt oi nc r e a s e t he c l a s sc o ns c i o us ne s sa mo ng t he Eur o pe a n wo r ki ng c l a s si no r d e rt o pus hf o ra no t he rmo d e li nad e mo c r a t i c wa y . Wea r eno ta g a i ns tt heEU pe rs e , wea r ea g a i ns tt hene o l i be r a lwa yt he EU i sbe i ng bui l tma i nl ys i nc et he Ma a s t r i c htTr e a t yi n1 9 9 2 ,a f t e rt hes o c a l l e dWa s hi ng t o nCo ns e ns uso f1 9 8 9 ( s o c i a l d e mo c r a t s a nd c o ns e r v a t i v e

f o r c e s ,t o g e t he r wi t h l i be r a l sa nd g r e e ns )t ha tputf o r wa r dt hene o l i be r a l g l o ba l i s a t i o nmo d e lt ha tg a v emo r ea nd mo r epo we rt ot hema r ke td i s ma nt l i ng t heWe l f a r eSt a t e . Ther e a lf a c ti st ha tc l a s ss t r ug g l ei s ma i nl ybe i ngpl a y e da tt heEur o pe a n l e v e la ndno ts omuc ha tt hena t i o na l l e v e l .Tha ti swhy we ,t he Spa ni s h Co mmuni s tPa r t y ,a r ei nf a v o ur o f ha v i ngapo l i t i c a lEur o pe a nt o o lo ft he r e v o l ut i o na r yf o r c e sl i ket heEur o pe a n Le f tPa r t yi no r d e rt ofig hta tt hel e v e l o ft heEur o pe a nPa r l i a me nta nda l s oa t t hel e v e lo fEur o pe a ns o c i e t yt o g e t he r a ndi npa r a l l e lt ot hena t i o na lfig ht s . Thee v e nt ua lbr e a kd o wno ft heEur o d o e sno tme a nav i c t o r yf o rt hewo r ki ngc l a s sbut ,o nt hec o nt r a r y ,i tme a ns af a i l ur eo ft hene o l i be r a lmo de l .Wed o no tha v ea na l t e r na t i v emo de lpr e p a r e d f o raEur o pe a nl e v e lbe c a us ewes t i l l r e ma i nl a r g e l yunde rt hei nu fle nc ea nd po l i t i c so ft hena t i o ns t a t e . Wemus tha v ea na l t e r na t i v emo d e l t obea bl et od e s i g naEur o pe a ne c o no mi c mo d e l wi t h Eur o pe a n wa g e s , Eur o pe a n publ i cs e r v i c e s ,Eur o pe a n fina nc e s ,Eur o pe a nwo r ki ngc l a s st o o l s i no r d e rt oi nt e r v e nei nt hepo l i t i c a l a nde c o no mi ca r e na ,a nds oo n.

5


I n Oc t o be r2 0 1 0 ,t he publ i cd e bt r e a c he d6 7 %o fGDPa ndt hepe r s o na l d e bt r e a c he d1 7 0 % o f GDP. The a d d i t i o no fbo t hnumbe r ss ho wst ha t t heo v e r a l ld e bti nSpa i nwa sne a r l y 3 0 0 %o fGDP. Ther e a le s t a t ebo o mt ha tt o o kpl a c e i nt hel a s td e c a dema d ef a mi l i e sa nd c o mpa ni e sa c qui r el o a nswi t h ba nks . Thec r e d i tg i v e nt of undpr i v a t ec o ns umpt i o na ndt oc o mpa ni e si no r de rt o i nc r e a s epr o d uc t i o nwe r et heo t he rs i d e o ft hi sbo o m.Thebur s to ft her e a l e s t a t ebubbl es ho we dt ha tt ho s ed e bt s we r ee s t a bl i s he do nt heba s i so fs ubpr i me l o a nsa nd t ha tt he a bi l i t yo f c o mpa ni e sa nd f a mi l i e st of ul filt he l o a npa y me nt swe r er e a l l ywe a k.The i nc r e a s ei n une mpl o y me nt a nd t he d e c r e a s ei ns a l e spr o v o ke dt hed i ffic ul t i e si nt hep a y me nto fd e bt s .The publ i cd e bti nSpa i nwa swi t hi no ffic i a l EU s t a nd a r d sbe f o r et hebe g i nni ngo f t hec r i s i s . Thebo r r o we r swe r ema i nl yb a nks a nds a v i ng sba nks ,a ndt heSt a t e ,v i a d ie ffr e nts pe c i a lf und s ,ha sr e c a p i t a l i s e dt he m t ot he i mpo r t a nts um o f €2 2 0 , 0 0 0 , 0 0 0 , 0 0 0( t wo hundr e da nd t we nt ybi l l i o ne ur o s ) .Re c e nt l y ,duet o t hebur d e no ft her e a le s t a t ed e bti n t heha nd so ft heSa v i ng sBa nks ,s o me e x t r amo ne yf r o mt heFROB( Fundf o r

Or d e r l yBa nkRe s t r uc t ur i ng ,c r e a t e di n 2 0 0 9b yt heGo v e r nme nt)i sbe i ng us e dt oa c c o mpl i s h t he mi ni mum r e qui r e me nt so fs o l v e nc yd e ma nd e dt o t he fina nc i a li ns t i t ut i o ns ( 8 % o f l i qui d i t yf o rb a nksa nd1 0 %f o rs a v i ng s b a nks ) . I n Oc t o be r2 0 1 0 ,t hepubl i cd e bt r e a c he d6 7 %o fGDPa ndt hepe r s o na l d e btr e a c he d1 7 0 %o fGDP.Thi sme a ns t ha tpr i v a t ede bti st hr e et i me sbi g g e r t ha npubl i cd e bt .Thepubl i cd e bti n 2 0 0 8r e a c he d3 5 . 8 %.I ti se v i de ntt ha t , i no r d e rt oc o v e rt her e s c uef undso f t hefina nc i a ls e c t o r ,ne w publ i cd e bt ha sbe e ni s s ue d .Toma kei tc l e a r ,t ha t €2 2 0 bi l l i o n we r e no ti n“ t he c a s h d e s k”a ndha sc r e a t e dt hene wc r i s i so f publ i cd e bt . Thed ie ffr e nc ebe t we e nt he3 5 . 8 % a nd6 7 %a bo v eme nt i o ne di st heb a i l o uto ffina nc eho us e s .Thed e btc o me s f r o mt heba nksa nds a v i ng sba nksa nd i ti sma i nl yd ue t ot he r e a le s t a t e c o l l a ps e . The ECB i sf o r c i ng t he St a t et o a d o ptpo l i c i e so fs o c i a lc ut sa ndl a bo ur a d j us t me nt si no r de rt ot r yt oc o nt a i n t hepubl i cd ec fii t . Thet r ut hi nSpa i ni st ha t ,i nt hi s v e r ymo me nt ,s o mes a v i ng sb a nksa r e o nt hee v eo f“ na t i o na l i s a t i o n, ”s ol a t e r t he yc a nbepr i v a t i s e d ,a ndt he r ei sno

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po pul a rr e s po ns e .Ourwo r ki sf o c us e d i nt hes l o g a no fna t i o na l i s a t i o no ft he b a nkso rs a v i ng sb a nkswi t ho uta ny c o mpe ns a t i o n a nd no tt o be r e pr i v a t i s e d . De bti sba s i ct ot hes y s t e mt o d a y .I n o r d e rt oi nc r e a s epr o d uc t i o na ndf und c o ns umpt i o nl e v e l sd e btmus tbeus e d b ype o pl ea ndc o mpa ni e s .Thi sme a ns t ha t mo no po l yc a p i t a l i s m i s mo s t l y d e pe nde nto nt hefina nc i a ls phe r e . Thec l a s sc ha r a c t e ro ft hes t a t ei s s e e nqui t ec l e a r l yi nt he s es i t ua t i o nso f c r i s i s ,a nd t he r ul i ng po l i t i c i a ns , r e g a r dl e s so fwhi c hpa r t yt he ybe l o ng t o( PP[ Pe o pl e ’ sPa r t y ] ,PSOE[ Spa ni s h So c i a l i s t Wo r ke r s ’Pa r t y ]o r Uni t e d Le f t )a r e ma na g i ng aa ffi r si nt he i nt e r e s to ft her ul i ngc l a s s e s . Br e a ki ngt hee ur owo ul dbear e a l l y s i g ni fic a nta d v a nc e .Ourc e nt r a ls l o g a n i nt hi sfie l di s“ not ot hee ur oa ndnot o t heEU. ”Oneo ft hefir s ts t e psi no r d e r t o a d v a nc ei n t he we a ke ni ng o f mo no po l yc a pi t a l i s mi st or e c o v e rt he s o v e r e i g nt yo ft hec o unt r i e si nt he s e ma t t e r s .TheEUc a nno tber e f o r me di n as o c i a lwa y ,b a s i c a l l ybe c a us ei ti sa t o o lo fmo no po l yc a pi t a li no r d e rt o g ua r a nt e eawi de ro pe nma r ke ta nda s i ng l ec a pi t a l i s te c o no mi cpo l i c yf o ra l l t heme mbe rs t a t e s .

CPI Special: 'EU and Austerity' edition of the VOICE  

This is a special edition of the newspaper of the Communist Party of Ireland explaining the EU and Austerity measures from first hand experi...

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