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Die Neue Zeit
21st May 2012, 18:58
http://www.businessghana.com/portal/news/index.php?op=getNews&news_cat_id=&id=165428

Greece's radical left leader, Alexis Tsipras, who polled strongly in an inconclusive vote last month, will hold talks with fellow leftist parties in Paris and Berlin during the start of a two-day visit on Monday.

Tsipras, the leader of the Coalition of the Radical Left or SYRIZA will meet former French presidential candidate Jean-Luc Melenchon in Paris on Monday and Klaus Ernst and Gregor Gysi of Germany's The Left party on Tuesday.

SYRIZA, who came in second in May 6 elections, refused to join the mainstream socialist PASOK and conservative New Democracy to form a unity government. The political stalemate forced new elections on June 17.

Tsipras' opposition to Greece's debt deal and rise in popularity has worried European leaders who insist the southern Mediterranean country must continue on the path of harsh austerity in order for it to continue receiving emergency funds.

Recent polls show Tsipras to be neck and neck with New Democracy and could well advance to win enough votes to become the country's next prime minister. dpa cp mat Author: Christine Pirovolakis



http://uk.reuters.com/article/2012/05/21/uk-greece-tsipras-idUKBRE84K08P20120521

(Reuters) - The charismatic Greek leftist who could determine the fate of the euro begins a tour of European capitals on Monday carrying a single message: it's time to talk.

In an interview on the eve of his first visit abroad since his surprise rise in a May 6 election, Alexis Tsipras veered occasionally into the combative rhetoric that has seduced disaffected Greek youth and alarmed Brussels and Berlin.

But he also stressed repeatedly that he wants negotiations to keep Greece in the euro. He said he was looking to forge ties with likeminded European figures, including new French President Francois Hollande, who want to soften austerity policies by finding new ways to encourage growth.

"The first reason we are taking this trip is because we want the governments of these important European Union countries, France and Germany, to see what we stand for: what is being transmitted in Europe about us is not what we represent and want," Tsipras told Reuters at the office of his SYRIZA party.

He will not be meeting government officials, but will see fellow leftists in France and Germany, including former French presidential candidate Jean-Luc Melenchon and Klaus Ernst and Gregor Gysi of Germany's The Left. He will hold news conferences in both capitals to get his message to a wider audience.

"We are not at all an anti-European force. We are fighting to save social cohesion in Europe. We are maybe the most pro-European force in Europe, because its dominant powers will lead the union into instability and the euro zone to collapse if they insist on austerity," he said.

While he repeated his assertion that the terms of a 130 billion bailout agreement Greece signed with international lenders in March are now a "dead letter", he said that if he comes to power he will seek a new policy mix to keep Greece in the euro.

"Yes, we do want Europe's support and funding, but we don't want the money of European taxpayers to be wasted. Two bailouts in a row went into the dustbin, into a bottomless barrel. If this continues we would need a third package in six months. Europeans and their leaders must realise this," he said.

"We want to make use of Europe's solidarity and funding to create the basis for our long-term reforms. But we need to know that in two-three years we'll have escaped this downward vortex, we will have growth, and we'll be able to pay back the money they gave us. There is no way we could pay them off if we continued this programme."

CHE BEHIND GLASS

European leaders have reacted with open horror to the rise of Tsipras, a 37-year-old former Communist student leader, who in a May 6 election humiliated the socialist and conservative parties that ran Greece for generations and signed the bailout.

Tsipras placed second in the election, winning enough votes to deny the establishment parties a majority to form a government. Two days later he wrote a letter to European leaders declaring the bailout programme "delegitimized".

In bitter coalition talks that followed, Tsipras refused to join the socialists and conservatives in a unity government, forcing President Karolos Papoulias to call a new vote in June.

Polls show Tsipras is now neck and neck with the conservative leader, and could well emerge with enough votes to become the next prime minister.

European leaders say that if the next Greek government spurns the bailout, they will have no choice but to cut off funding, which would effectively bankrupt Greece and force it out of the euro. The prospect sent the single currency tumbling last week and hurt the bonds of Spain and Italy, countries that could be next in the firing line if Greece collapses.

Tsipras's boyish good looks and forceful rhetoric have especially appealed to Greek youth, who have been hit the hardest by the economic crisis. Five years of recession have left more than half of young people jobless, and many blame middle aged political bosses for sacrificing their future to protect an older generation's perks.

The shopworn office of Tsipras's SYRIZA party, in a shabby old building in a slightly seedy neighbourhood of central Athens, hardly looks like the headquarters of a group poised to be thrust into power.

Staff are young, in jeans and T-shirts, the men sporting varied patterns of facial hair. A faded poster of Che Guevera hangs on a wall behind a broken pane of glass.

Tsipras has been denied a meeting with new Socialist President Francois Hollande, who defeated conservative Nicolas Sarkozy on the same day as Greece's inconclusive vote, but Tsipras clearly sees Hollande as an ally in persuading Europe to abandon its austerity prescriptions.

Sarkozy's defeat had altered the political dynamics in Europe, depriving German Chancellor Angela Merkel of her main ally in promoting belt-tightening, Tsipras said.

"For the first time Merkel is extremely isolated," he said. "The implementation of the austerity policies - not only in Greece but also in Spain, in Portugal, Italy, Ireland and other places where fiscal consolidation plans based on austerity are implemented - obviously failed."

He pointed to the United States, where he said the Obama administration's stimulus programme had helped make recession less severe than in Europe, and noted that Obama and Hollande appeared to see eye to eye at a meeting on Friday.

"At the Hollande-Obama meeting, the main issue was what happens with Greece," Tsipras said. "Until yesterday, what would happen to Greece was given: the people and workers would be crushed, labour rights would be demolished."

New negotiations for a Greek rescue should take place among elected leaders, rather than at the level of technical advisors from the EU, European Central Bank and International Monetary Fund, which he said was "degrading" for a Greek prime minister.

"For the first time after a very long time, we have the conditions and the terms so that this negotiation is in the interest of the people and against banks and capital."

Among measures he said he wanted to discuss would be funding from the ECB for state budgets - a proposal seen as anathema in Germany - and joint European bonds to fund a "Marshall plan" of investment in sectors like renewable energy.

"Greece is a blessed country. It has a lot of sun, it can manage its waters in a better way to produce energy, it has wind. It should become a renewable energy Eldorado," he said.

But such suggestions mean changing the European consensus on the need for austerity measures to reduce debt, as manifested by the cutbacks demanded in Greece's two huge bailout packages, which made its recession worse.

"If we prescribe a medicine that worsens the patient's health instead of curing the illness, the solution can't be to to give him another dose, as we did with the second bailout.

"If the Europeans don't realise this we will have made a historic mistake, because the real patient is not only Greece.... We must realise that we must change the treatment before it is too late for Europe."

aty
21st May 2012, 20:40
Keynesianism wont work, you cant manage capital anymore...

Blanquist
21st May 2012, 20:58
Keynesianism wont work, you cant manage capital anymore...

explain,why-not?

The Douche
21st May 2012, 22:12
explain,why-not?

This whole crisis and all the austerity measures are the result of capital's inability to sustain social democracy and keynesian economics.

Raúl Duke
21st May 2012, 23:12
This whole crisis and all the austerity measures are the result of capital's inability to sustain social democracy and keynesian economics.

I agree with you, but I view this more as a hypothesis.

We'll soon see, as these "anti-austerity" sentiment rises and their parties win in elections I believe we'll put this hypothesis to a test. Perhaps there will be a coup, threats from Germany, etc, some strange parliamentary maneuvers which will bring the anti-austerity reformists down, the anti-austerity parties renegade on their anti-austerity platform, or maybe even neo-fascism (?) or something I didn't even predict. If any of these things happen than the hypothesis will seem to be very very true and it should become obvious to all that there's no future in electoral politics at all.

Angry Young Man
21st May 2012, 23:19
So is there no faith that Syriza can't keep their finger on the pulse with regard to what they should be doing? I was hoping if they crystallise properly, they may have a chance of seizing power and establishing socialism.

aty
21st May 2012, 23:22
explain,why-not?
What cmoney said. The whole debate between the austrians and the keynesians at the moment is just laughable. Not either of them have any answers on how to fix the crisis, because there is no answer, it cant be fixed.

We have just tried the austrian austerity now for 4 years and it has obviously just gotten worse with no growth at all and the debt keeps spinning out of control.
The keynesians answer is to invest out of the crisis, that means taking even more debt. This can work for some year or two until the debt is out of control and the investments have not produced enough growth.

This is probably the first time since the great depression that we marxists have upper hand in the economic debate and we have not even realised it yet. We should overflow the economic pages on the internet by now, but we dont.
Most "marxist" economicans today still have some marxism-keynesian analys of the crisis. Such as that it is inequality and the resulting "underconsumption" that is the source of the crisis, this produces reformist solutions and ideas(keynesianism). That is why it is important too attack the capitalist economic system directly as such, like the new work from Andrew Kliman who identifies the tendency of the rate of profit to fall as the main source of this crisis. Such explainations attack the core and produces revolutionary solutions and ideas.

Capitalism as a sustainable economic system is fucked, and now the interesting part will be how the capitalists are going to try to keep control over their property and uphold the capitalist property laws.
I think we will see a more and more authoritarian capitalism, not 20th century fascism but something new more technocratic.
Or we will see another world war that will destroy large amounts of means of production that can be rebuilt, like the second world war and the keynesian economic boom afterwards. But I think the capitalists today are too scared to create another world war while there are nuclear weapons.

This is were marxist economics are going to play a big role in some years when we we have managed to produce a common marxist economic explaination of the crisis and how to overcome the capitalist system and create a communism.

Ultimately, this is why we are communists, Socialism or Barbarism.

Vladimir Innit Lenin
21st May 2012, 23:31
This whole crisis and all the austerity measures are the result of capital's inability to sustain social democracy and keynesian economics.

That's not strictly true. Personal debt and public sector debt are as much an ill of neo-liberalism as they are of Keynesianism, something that is often missed by many. Public spending went up under the rules of Thatcher, Blair et al.

Not that Keynesianism isn't a dead horse, but just saying, it's very much incorrect to make a direct link between social democracy/Keynesianism and the current economic mess. The current mess is a legacy of financial capitalism and an over-reliance on financial services, raising money through via bond markets and the initial housing crisis, in addition to a poorly constructed currency (in Europe), over-zealous and wasteful spending on the outsourcing and private-financing of public projects (PFI in Britain, for example) and wasteful spending on military adventures (though of course, liberal interventionism in Iraq and Afghanistan has i'm sure, got its economic benefits for the imperial nations in the form of oil contracts.

A Marxist Historian
23rd May 2012, 03:12
So is there no faith that Syriza can't keep their finger on the pulse with regard to what they should be doing? I was hoping if they crystallise properly, they may have a chance of seizing power and establishing socialism.

A bit tricky, being as Tsipras didn't advocate socialism while running for office. So, if he were to do a flip flop and suddenly want to do a Castro, he wouldn't even have the support of his voters, much less that of the army and police, who would overthrow him so fast his head would spin. Which they could get away with under the circumstances.

All history has demonstrated that you can't bring about socialism by being elected to office in a capitalist state. And you certainly can't bring about socialism if you weren't even campaigning for socialism in the first place.

Tsipras may well be elected, not as a socialist, but as an anti-austerity Keynesian. But Keynesianism is exactly what got Greece into the economic mess it is in.

He can't possibly "prime the pump" through spending borrowed money, as, unless he agrees to pay back the Euroloansharks, no banker would lend Greece a dime.

If he does what the KKE advocates and leaves the Euro, exactly what he said he wouldn't do, he could crank up the printing presses and print lots of lots of drachmas. This would result in huge inflation, and big wage reductions.

At this point, that would probably be the lesser evil to any other alternative in front of a non-socialist regime, but would reduce workers' living standards even further.

-M.H.-

A Marxist Historian
23rd May 2012, 03:27
What cmoney said. The whole debate between the austrians and the keynesians at the moment is just laughable. Not either of them have any answers on how to fix the crisis, because there is no answer, it cant be fixed.

We have just tried the austrian austerity now for 4 years and it has obviously just gotten worse with no growth at all and the debt keeps spinning out of control.
The keynesians answer is to invest out of the crisis, that means taking even more debt. This can work for some year or two until the debt is out of control and the investments have not produced enough growth.

This is probably the first time since the great depression that we marxists have upper hand in the economic debate and we have not even realised it yet. We should overflow the economic pages on the internet by now, but we dont.
Most "marxist" economicans today still have some marxism-keynesian analys of the crisis. Such as that it is inequality and the resulting "underconsumption" that is the source of the crisis, this produces reformist solutions and ideas(keynesianism). That is why it is important too attack the capitalist economic system directly as such, like the new work from Andrew Kliman who identifies the tendency of the rate of profit to fall as the main source of this crisis. Such explainations attack the core and produces revolutionary solutions and ideas.

Capitalism as a sustainable economic system is fucked, and now the interesting part will be how the capitalists are going to try to keep control over their property and uphold the capitalist property laws.
I think we will see a more and more authoritarian capitalism, not 20th century fascism but something new more technocratic.
Or we will see another world war that will destroy large amounts of means of production that can be rebuilt, like the second world war and the keynesian economic boom afterwards. But I think the capitalists today are too scared to create another world war while there are nuclear weapons.

This is were marxist economics are going to play a big role in some years when we we have managed to produce a common marxist economic explaination of the crisis and how to overcome the capitalist system and create a communism.

Ultimately, this is why we are communists, Socialism or Barbarism.

Thanks for saving me from carpal tunnel. Couldn't have put it better myself.

Greece is the lab for the future. They've just tried a government of technocrats, that didn't work either.

A military coup is the obvious option, but poorly suited for Greece, as Greeks have seen military dictatorships before--and overthrown them, even as recently as the 1970s!

The Golden Dawn are 100% old fashioned 20th century fascists in the Hitler mold. They are definitely an option that some Greek capitalists are thinking about. But that's problematic too, as Greeks still remember what the Nazis did to them.

-M.H.-

A Marxist Historian
23rd May 2012, 03:36
That's not strictly true. Personal debt and public sector debt are as much an ill of neo-liberalism as they are of Keynesianism, something that is often missed by many. Public spending went up under the rules of Thatcher, Blair et al.

Not that Keynesianism isn't a dead horse, but just saying, it's very much incorrect to make a direct link between social democracy/Keynesianism and the current economic mess. The current mess is a legacy of financial capitalism and an over-reliance on financial services, raising money through via bond markets and the initial housing crisis, in addition to a poorly constructed currency (in Europe), over-zealous and wasteful spending on the outsourcing and private-financing of public projects (PFI in Britain, for example) and wasteful spending on military adventures (though of course, liberal interventionism in Iraq and Afghanistan has i'm sure, got its economic benefits for the imperial nations in the form of oil contracts.

According to Keynes, it doesn't matter what the government spends money on, it primes the pump. It could be Egyptian pyramids.

WWII seemed to prove the Keynesians right, as here you had huge and utterly wasteful, abstractly speaking, military expenditure, and it did cure the Great Depression, didn't it?

The flaw in the argument is that US expenditures weren't wasteful at all. They gave the US control of the world economy, and destroyed all its rivals. Worth every penny.

Military expenditures are great when you win wars, really bad if you lose them.

Blaming it all on the evil bankers is true on one level, false on a deeper. Financial chicanery and double dealing has always been a feature of capitalist expansion, all the way back to the great Dutch tulip Ponzi scheme of the early 18th century. Financial collapses are always what crashes look like, and they always have deeper causes.

-M.H.-