Facebook Instagram Twitter YouTube

On the most recent meeting of the European Council in Brussels

After a last-minute agreement between Merkel and Sarkozy, after seven tense hours of meeting up to the night of July 20, on the following day, the people in charge of the euro zone, gathered in an emergency summit in Brussels, reached an agreement on a new “bailout” plan for Greece, acknowledging for the first time […]

Juan Chingo

July 22, 2011
Facebook Twitter Share

After a last-minute agreement between Merkel and Sarkozy, after seven tense hours of meeting up to the night of July 20, on the following day, the people in charge of the euro zone, gathered in an emergency summit in Brussels, reached an agreement on a new “bailout” plan for Greece, acknowledging for the first time that Greece will not be able to repay all of its debts and accepting a partial default, the first one taking place in an advanced capitalist country in decades. Claiming for their part that Greece is in a unique situation, a dubious matter, they are, in fact, taking Greece out of the capitals market for ten years, by the euro group’s taking charge of Greece’s rehabilitation, with a new loan at lower rates than the current ones and a promise of investments, in what the European Council is pompously and extravagantly calling a Marshall Plan.

Although the plan involves a real breath of fresh air for Greece and its government, it only entails a slight reduction of the debt burden – 21% – in the framework that keeps all the Draconian attacks on the Greek workers and people. In other words, the announced restructuring is too limited to reestablish Greece’s ability to pay, which is why Greece will continue to be dependent on the trickle of funds from its European partners, in exchange for international economic tutelage and a reinforced need to fulfill its commitments, especially the privatizations. In plain language, the plan involves the subjugation of the Greek masses to thirty more years of being bled dry.

Next to these measures, the plan advances in real participation of the private sector, at the same time that the conditions of operation of the European bailout fund, the European Financial Stability Facility (EFSF), are being relaxed, permitting it to extend preventive credits and refinance the banks of countries with problems, although they have not been bailed out, at the same time as the purchase of bonds in the secondary debt market, but only under the order of the ECB and under circumstances of extreme financial instability, well thought out measures, taking into account the fragile situation of Spain and Italy, countries where the destiny of the euro is at stake. The weakest point of all this is the fact that the new conditions and tasks granted to the EFSF are being carried out without contributing a single euro more to its already overburdened funds, which is why it remains to be seen if they will be effective in achieving their aims.

The European leaders’ agreement, better than what was expected by bourgeois analysts, takes the euro zone, for the time being, from the abyss, where it was after the spread of the contagion to Italy, the third-largest economy of the EU, in recent weeks, by temporarily easing the tensions in the sovereign debt market, although at a high price. However, despite the positive reaction of the markets and the triumphalism of many commentators, the agreement is still far from being a long-term solution for achieving the stability of the euro zone.

Facebook Twitter Share

Juan Chingo

Juan is an editor of our French sister site Révolution Permanente.

Twitter

Europe

No to Imperialist War: Ukrainians Gain Nothing from U.S., NATO, or Russian Troops

The situation on the Ukraine-Russia border is growing hotter and hotter, with the possibility of war becoming greater with each passing day — especially as U.S. imperialism and NATO have now decided to up the ante and mobilize their own forces. The reactionary objectives of both sides are coming into much sharper focus.

Scott Cooper

January 25, 2022

“Black Monday”: World’s Stock Markets Fall in Reaction to the Fed and Ukraine

Global stock markets took a serious tumble on Monday as fears over inflation and the conflict in Ukraine affected trading. It has been a bad year so far in capitalism’s network of casinos.

Eleanor Marx: A Punk in the 19th Century

Eleanor Marx, the youngest daughter of Karl Marx and herself a socialist activist, was born on this day in 1855. A citizen of the world, she resonated with Shelley and Ibsen and participated in the main theoretical and political debates of her time.

Celeste Murillo

January 16, 2022
Protesters carry a banner that says "Johnson Must Go, He Partied While People Died."

Why “Partygate” Threatens to Bring Down UK Prime Minister

UK Prime Minister Boris Johnson is in the midst of a growing political crisis after it became clear that he and his aides violated Covid-19 regulations by having parties. These parties are a slap in the face to the working people of Britain, who were banned from seeing their families while the Prime Minister drank with his cronies.

Ezra Brain

January 16, 2022

MOST RECENT

Israel Continues Its Violent Displacement of Palestinians

2022 brings another year of Israeli violence against Palestinians. Solidarity with the movement to free Palestine from Zionist occupation must remain a priority of the Left.

Sam Carliner

January 26, 2022

Peruvian Fishermen Block Highway after Devastating Oil Spill

Hundreds of residents and fishermen living in the areas affected by the oil spill in Peru mobilized over the weekend demanding that the government immediately sanction Repsol, and require the company to compensate those affected by this ecocide.

Cecilia Quiroz

January 24, 2022
Image of Biden in front of coronavirus molecules, fires, and George Floyd mural.

Let Us Turn Our Anger at Biden Into Organization

Across the country, people are taking to social media to share their frustration with the Biden government. While this airing of anger is natural, it isn’t enough. We need to organize against the Biden administration.

Ezra Brain

January 23, 2022

Michigan Activists Picket Fake Abortion Clinic

On the 49th anniversary of the Supreme Court’s decision in Roe v. Wade legalizing abortion across the United States, and with abortion rights under concerted attack in many states, a group of activists picketed a fake clinic in Michigan.

Jessica Prozinski

January 23, 2022