Greece's offer to the EU

[FSL]

Dear President of the Eurogroup,

Over the last five years, the people of Greece have exerted remarkable efforts in economic adjustment. The new government is committed to a broader and deeper reform process aimed at durably improving growth and employment prospects, achieving debt sustainability and financial stability, enhancing social fairness and mitigating the significant social cost of the ongoing crisis.

The Greek authorities recognise that the procedures agreed by the previous governments were interrupted by the recent presidential and general elections and that, as a result, several of the technical arrangements have been invalidated. The Greek authorities honour Greece΄s financial obligations to all its creditors as well as state our intention to cooperate with our partners in order to avert technical impediments in the context of the Master Facility Agreement which we recognise as binding vis-a-vis its financial and procedural content.

In this context, the Greek authorities are now applying for the extension of the Master Financial Assistance Facility Agreement for a period of six months from its termination during which period we shall proceed jointly, and making best use of given flexibility in the current arrangement, toward its successful conclusion and review on the basis of the proposals of, on the one hand, the Greek government and, on the other, the institutions.

The purpose of the requested six-month extension of the Agreement΄s duration is:

(a) To agree the mutually acceptable financial and administrative terms the implementation of which, in collaboration with the institutions, will stabilise Greece΄s fiscal position, attain appropriate primary fiscal surpluses, guarantee debt stability and assist in the attainment of fiscal targets for 2015 that take into account the present economic situation.

(b) To ensure, working closely with our European and international partners, that any new measures be fully funded while refraining from unilateral action that would undermine the fiscal targets, economic recovery and financial stability.

(c) To allow the European Central Bank to re-introduce the waiver in accordance with its procedures and regulations.

(d) To extend the availability of the EFSF bonds held by the HFSF for the duration of the Agreement.

(e) To commence work between the technical teams on a possible new Contract for Recovery and Growth that the Greek authorities envisage between Greece, Europe and the International Monetary Fund which could follow the current Agreement.

(f) To agree on supervision under the EU and ECB framework and, in the same spirit, with the International Monetary Fund for the duration of the extended Agreement.

(G) To discuss means of enacting the November 2012 Eurogroup decision regarding possible further debt measures and assistance for implementation after the completion of the extended Agreement and as part of the follow-up Contract.

With the above in mind, the Greek government expresses its determination to cooperate closely with the European Union΄s institutions and with the International Monetary Fund in order: (a) to attain fiscal and financial stability and (b) to enable the Greek government to introduce the substantive, far-reaching reforms that are needed to restore the living standards of millions of Greek citizens through sustainable economic growth, gainful employment and social cohesion.

Sincerely,

Yanis Varoufakis

Minister of Finance

Hellenic Republic"

Germany rejected this offer already because according to them Greece needs to get a 3% primary budget surplus this year and not "appropriate primary fiscal surpluses, guarantee debt stability and assist in the attainment of fiscal targets for 2015 that take into account the present economic situation" which would allow room for smaller surpluses if 3% seems difficult (because of the elections the budget has been going pretty badly the first couple of months).



If I hear anyone saying "anti-austerity" ever again I'm going on a murderous rampage.

[PhoenixAsh]

In earlier debates about the austerity measures in the last years and the possible solutions you have rejected the idea and concept that Greece should leave the EU. Your own arguments could be summarized as: favoring the option of internal KKE-advanced revolution in Greece at a similar time frame of a pan-European revolution while leaving the EU at the current moment would be devastating to the Greek economy (correct me if I am oversimplifying).

Your arguments against SYRIZA are that they co-opt the capitalist system and won't deliver on their promises...or bring any real worker friendly change (again....correct me if I am oversimplifying).

What are your suggestions what should happen right now in the current context?

[Kill all the fetuses!]

FSL,

Since you are greek, could you maybe tell what's the general feeling in the country considering today's development? Any noticeable changes in the mood? What's the pro-Syriza media's reaction?

[Ethics Gradient, Traitor For All Ages]

I would just like to see SYRIZA and it's supporters be honest and stop trying to hide behind empty slogans, while at the same time doing what every critical voice said they would do before taking power. I don't personally have an issue with SYRIZA's tactics from a communist perspective, I'm just irritated by their PR campaign in the same fashion that I am with every bourgeois party. Aside from that I'm inclined to view them with the same apathy as any other group

[Creative Destruction]

Maybe I'm being optimistic here, but for all my criticisms of SYRIZA, this seemed like a political ploy. I have a feeling they knew the Germans would react the way they did and came up with this offer to frame the conversation as "Hey, we even backed off a little from our anti-austerity position and see what happened."

[Kill all the fetuses!]

I don't think they backed-off "a little" considering all their rhetoric up to now. But what are they gonna do? They removed an option of exiting the euro and defaulting unilaterally from the get-go, they refused to use it even as a bargaining chip. So what is that they have to offer the germans? Some morality tales about "look how bad and unreasonable they are"? The thing is that at this point, as far as I am concerned, by removing an option of the Grexit from the get-go, they didn't even attempt to prepare a worked-out plan of such a scenario, so it's unlikely they would leave. But besides that, what else can they bring on the table? I am not sure.

But the agreement is to be reached tomorrow and Syriza said the troika should either accept it or not and there is no other way. So let's wait for tomorrow and see if Syriza capitulates completely or will they do something "radical".

[FSL]

In earlier debates about the austerity measures in the last years and the possible solutions you have rejected the idea and concept that Greece should leave the EU. Your own arguments could be summarized as: favoring the option of internal KKE-advanced revolution in Greece at a similar time frame of a pan-European revolution while leaving the EU at the current moment would be devastating to the Greek economy (correct me if I am oversimplifying).

You're not oversimplifying, you're getting it wrong. I don't think any type of capitalist management can solve the workers' problems (or even make them slightly milder it would seem). That includes staying in the eu, leaving the eurozone or leaving the EU altogether to join the "eurasian union" or something similar.

What can solve the problems is a revolution that would socialize the means of production and establish a centrally planned economy in a Greece that leaves the EU, NATO and all sorts of imperialist alliances.

[FSL]

FSL,

Since you are greek, could you maybe tell what's the general feeling in the country considering today's development? Any noticeable changes in the mood? What's the pro-Syriza media's reaction?

Funny thing, all the media are pro-syriza. This is what happens when a bourgeoisie of one country "goes to war" against the bourgeoisie of another country. They claim Germany is being irrational and point to other more positive reactions. Not one is blaming syriza.

People weren't really reading into the concessions the government was making in the previous days (no debt write off, no immediate increase in the minimum wage). Remarkably, the first thing that annoyed many was syriza proposing a rightist for the post of the President of the Republic.
When news of this letter broke out this morning it was immediately considered "selling out" but then Germany's rejection again got some people excited thinking "Well if Germany rejects it it must be good!". Others are expressing disappointment with the developments, some are wishing for a drachma-euro referendum (which I don't think the government intends to hold).


The differences between this and what Germany (and many other countries) wants aren't really substantial. They're mostly symbolic. A surplus of 3% hurts and a surplus of 2.5% or 2% hurts just as much when you already have nothing.
We'll see what's decided tomorrow.

[ckaihatsu]

[L]eaving the EU at the current moment would be devastating to the Greek economy (correct me if I am oversimplifying).

Saw this at another site....

So, let’s take the status quo’s worst-case scenario, in which Greece ditches the euro and returns to the easy-to-manipulate drachma. It converts all its outstanding euro-denominated debt to drachmas and then devalues its new/old currency by 30 or so percent, pricing its hotel rooms, charter boats and restaurants back into attractive territory. That’s okay on balance for the Greek people, who benefit more from rising tourism than they’re hurt by devalued savings.

But it’s very bad for European banks and US hedge funds that now own tons of Greek debt and will therefore suffer big losses. More damaging still, once the precedent is set everyone will start looking around for the next domino to fall and will find plenty, with Italy (now in the throes of a political crisis of its own) leading the list. That’s a much bigger economy with way more euro-denominated debt, so an Italian exit from the eurozone would be apocalyptic for the whole global financial system.

Will it come to that in 2015? History says probably not. Remember, Greece has been on the verge of imploding for a decade, and each time the money has been found to save it. With the ECB inching towards a multi-year, multi-trillion euro debt monetization plan, the entire Greek economy could be tucked into that expanding balance sheet without a ripple. So expect another wealth transfer from Germany to Greece in the near future. And then perhaps one from Germany to Italy. But also expect some drama along the way.

http://dollarcollapse.com/currency-w...-greece-again/

http://www.revleft.com/vb/showpost.p...9&postcount=15

[FSL]

That’s okay on balance for the Greek people, who benefit more from rising tourism

Do people think that the "Greek people" own on average two or three hotels?
Because we don't.

Maids work on daily contracts and would be payed in drachmas by the hotel owner who would be getting euros.

[ckaihatsu]

Do people think that the "Greek people" own on average two or three hotels?
Because we don't.

Maids work on daily contracts and would be payed in drachmas by the hotel owner who would be getting euros.

Understood -- this was in response to an uncertainty about the Greek *economy* as a whole. Your mileage may vary depending on your class position in the economy.

[cyu]

The Messiah complex when someone else is the messiah: He'll save us! He's a great man! I'm rooting for him! Don't let us down! Let's see what he does! You have lost your agency, and given it to someone else. You have created a single point of failure - if someone gets to him, your cause is lost. Meanwhile, you do nothing about your problems, and wait for someone else to make everything perfect, and wait, and wait, and wait... You become a spectator in your own life.

The Messiah complex when you are the messiah: I'll save you all. I have all the answers. You are well-intentioned but don't really know what you're talking about. The fate of the world rests on everything I do. I must succeed at all costs. From my ivory tower, I can see it all. Your movement is nothing without me.

The Messiah complex when everyone is the messiah: We'll save everyone ourselves.

[Kill all the fetuses!]

"You couldn’t make this up. Apparently, Greece sent the wrong letter on Thursday, German newspaper Bild reports, citing government sources.

The right version supposedly accepted bailout conditions agreed to by the previous Greek government.

According to the report, Tsipras, Juncker and Dijsselbloem jointly drafted a letter on Wednesday. However, Varoufakis sent an altered version of the letter that omitted the parts that said Greece will accept the bailout conditions.

Tsipras later told Merkel it was an “administrative mistake.”

The Eurogroup meeting is supposed to start any moment now."

- The Guardian

[Futility Personified]

So is this utter capitulation then?

[Kill all the fetuses!]

On its face value it seems so, but I have my doubts. It would rather seems to me that Syriza is merely trying to buy some time so that in the next 6 months it can put something more on the table, like Grexit, unilateral action in terms of default, potentiality of foreign lenders (Russia, China) or something to that effect. But that's my guess.

But what it really depends on and what I am interested in - and hopefully FSL will enlighten us on this subject as I can't seem to find any English info online - is what is happening inside Syriza? How far to the right has the Left Platform been dragged? Are they still representing 30% of CC members? Are they still pro-default? What are the debates happening inside the party at the moment? It would be wonderful if you could give your thoughts on this or direct me to some English sources.

[cyu]

If they can't win by cheating in elections, then they'll win with blackmail and physical intimidation. Support for capitalist economics is based on ignorance and lies, and as of now, the ruling class still has no plans to give up their power. And so the world continues to lurch on into darkness.

[Kill all the fetuses!]

Apparently, the accusation posted in the Guardian was false.

"Greece has reacted with fury to suggestions that it sent the “wrong” letter outlining its request for a sixth-month extension of its bailout programme, our correspondent in Athens Helena Smith reports.

The Greek media is reporting that an irate Yanis Varoufis emerged from talks in Brussels this afternoon with fellow euro zone finance ministers to vehemently denounce the allegation - carried in the mass-selling German tabloid Bild (as reported earlier).

Aides to the Greek prime minister Alexis Tsipras described the story as “a fanciful scenario” cooked up by people with “unhealthy imaginations.”"

[Creative Destruction]

I just looked up Bild and it looks like a gossip rag with conservative leanings. How in the hell did the Guardian, of all places, think it would be a good story to run?

[Kill all the fetuses!]

I just looked up Bild and it looks like a gossip rag with conservative leanings. How in the hell did the Guardian, of all places, think it would be a good story to run?

Yeah, it was my bad not to check the source and post it here. Apologies.

It wasn't a story, it was a part of their live feed on the ongoing negotiations.

[ckaihatsu]

The Messiah complex

Neo sacrificing himself at the end of The Matrix Revolutions. (Source: Empireonline.com)