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Comrades,
In a few days, we will have completed five months in government.
Five extremely high-pressure months for all of us. From the onset, we found ourselves facing both an internal and external state of affairs that we were not responsible for creating.
An economy and a society decimated by six years of continuous cuts and recession that destroyed our country’s productivity, caused unemployment to skyrocket, exacerbated social inequalities and led millions of our fellow citizens to poverty and social exclusion.
These are the circumstances that we inherited. Not that this came as a surprise.
We were well aware of the tremendous problems that existed, and we made a brave political choice.
To seek, during the most difficult moment for the country and its citizens, the responsibility of governing.
And we did so because we witnessed the country sink ever-deeper due to the memorandum framework under the previous government.
We realized that the situation would soon be irreversible–not only for the Greek economy, but for the rights and expectations of the social majority that we seek to represent.
As such, we were prepared that governing would not be a walk in the park. There would be no grace period.
From the very start, we found ourselves needing to defend the most basic of our tenets while facing a minefield of problems leftover from the previous government–who were betting on a “left parenthesis.”
But we didn’t indulge them.
We dealt with the Program’s end on February 28th by achieving an agreement that gave us the opportunity and time to negotiate, and to begin implementing our commitments to the Greek people.
No one can claim that these past months have been easy.
Despite the lack of external funding, restriction of liquidity, constant “traps” by the Memorandum establishment–both within Greece and abroad—we are still standing and ready to press ahead.
Despite our attention being constantly drawn to the negotiations, we have passed the first relief measures that aim to help the most underprivileged in our society.
We have passed a bill addressing the humanitarian crisis, enacted a measure allowing for one hundred insurance installments–which provided relief to thousands of indebted households and businesses, reinforced the Treasury and re-opened the public broadcaster (ERT)–all of which addressed the shameful circumstances that resulted from five years of the Memorandum.
Furthermore, we restored certain public sector injustices, including rehiring the school guards and the cleaners from the Ministry of Finance; abolishing the five euro fee at hospitals; bringing legality to the media landscape; reorganizing football through a new sports law; modernizing our congested prison system; and we have already voted in committee—a law awarding citizenship to second generation immigrants.
Each of these measures, each of these interventions, required a tremendous battle against the Memorandum establishment.
A struggle against prejudices, preconceptions, roadblocks–within the country and abroad.
We intend to continue with our work, knowing full well that the difficulties are far from over.
There will be more struggles.
It is, however, our responsibility to shoulder this burden and we will do so with determination and persistence, as long as the Greek people support our efforts, as long as they stand by us and place their trust in us.
There is much work ahead to make lasting changes to the disastrous and miserable reality courtesy of the Memoranda.
The most difficult battles lie ahead, and we must be ready for them.
To be fair, there are a few issues that we’ve fallen behind on, although we are not solely responsible for this.
Perhaps we’ve not yet done as much as we could’ve to combat tax evasion; however, we’ve commenced our efforts on this.
There have also been delays in combatting corruption, and in some cases we have even allowed the Memorandum forces to drive certain political and social developments.
As you are well aware, governing and real power are two different things.
This struggle is our priority now: to install a genuine democracy in our country, to make the Greek people a top priority once more, to dismantle the Memorandum regime in its entirety, and to restore justice.
Therefore, I call on all of you to contribute to this fight: with constructive criticism; highlighting real problems; supporting initiatives; pressing Ministers; and, continuously keeping the Greek people informed.
I am certain that if we utilize all of our might in a spirit of unity and solidarity, if we have the confidence of the Greek people, in the next four years, we will see a real democratic spring. Our country truly needs it.
Comrades,
A prerequisite for moving forward is finding a solution to the country’s funding problem.
This solution will provide the framework for our actions going forward.
Since entering office, and even beforehand, we stated our intention to discuss with, and reach a mutually beneficial agreement with our partners that respects both the rules of the Eurozone and the mandate of the Greek people to change course.
We have made clear, however, that this agreement cannot constitute a continuation of Memorandum policy, the policy of austerity, internal devaluation and recession,which have harmed the social majority.
From the outset, the Greek side approached the negotiation with good faith, honesty and a willingness to bridge differences, identify commonalities, and promote solutions that would resolve the financing problem once and for all–without burdening the employees and the pensioners who have shouldered the brunt of the measures during these fives years; people who were not responsible for creating the circumstances they were facing.
Following three months of intense and difficult negotiations, we submitted a comprehensive and complete document two weeks ago. This document contained proposals that although difficult, would be economically viable and socially acceptable.
This document, of course, did not represent the initial positions of the Greek side.
It came about from the difficult negotiations with the Brussels Group, and outlined the common ground that could form the basis of an agreement with the institutions and our European partners.
It took into account our red lines, as well as the positions of the institutions.
Instead of a response to our proposal, we received – a few days later – a brief, five page document from the institutions that wholly ignored the progress made during the negotiations. Instead, it included proposals for pension cuts, dramatic VAT increases–even on electricity, and to repeal EKAS (Pensioners’ Social Solidarity Benefit), in addition to many other irrational, unrealistic and unacceptable measures.
Despite this development, which also ignored our sincere efforts to find a solution, we came back to the negotiating table, proving once again that our aim was to reach a solution.
In an attempt to bridge the fiscal gap, we proposed equivalent measures that would not harm those who have been irreversibly affected by the crisis.
The answer we received– yet again –was that the permanent parametric measures must include annual cuts equaling 1% of GDP, i.e. 1.8 billion Euro in pensions and an equivalent amount from an increase in VAT.
And this, despite the fact that it is well-known that pensions in our country have undergone dramatic cuts during the last five years and that 2/3 of pensioners in Greece receive pensions below or near the relative poverty threshold.
This attitude of indifference also extends to the VAT increase on energy, which serves only to decrease actual wages.
It is rather odd that the institutions not only ask for high fiscal targets but also do not accept the equivalent measures that we offer to bridge the differences.
Ι want to make it clear that the issue of taxation, and specifically who will be paying taxes, is the sole responsibility of the Greek government.
The time has come for the crisis to be shouldered by the oligarchy in this country, and not the working classes, the employees, the pensioners and the self-employed.
Comrades,
The institutions’ persistence that we follow a program of austerity that has obviously failed, and their insistence on measures that they know we won’t accept cannot simply be a mistake, or a result of overzealousness.
Chances are, their insistence serves political motives, as well as a political plan to humiliate not only the Greek government but also, our country.
To present a clear message to the Greek people and the people of Europe, that a popular mandate cannot change things.
That the law and the dominant value in modern Europe is not democracy but rather a cruel and socially unjust neo-liberalism.
One wonders whether there is a sincere attitude to find a solution.
Is the negotiation being conducted in good faith and parity?
We are seeing, instead, an attempt to demonstrate strength, with the intention to block any attempts to end austerity, any attempts to build a social and economic model that will give priority to the interests and needs of the social majority.
The ECB is using similar tactics: the financial asphyxiation of Greece only confirms this. Since February 20th, a constraint by the ECB has been in force regarding issuing Treasury bills–a constraint that has no legal basis since the validity of the loan agreement has been extended and the country is in a negotiation process within the Program. Yet, the ECB insists on asphyxiation tactics.
Are these tactics democratic and rational in a negotiation between partners, within the European Union and the Eurozone?
Are these tactics ones that Europe can feel proud of?
Comrades,
Despite the many recent aggressive statements, I firmly believe that there are still forces in Europe that acknowledge the mistakes of the past and that understand how critical the situation is.
There are forces working towards a just solution.
And these forces must prevail, defying those who choose tension, threats and Cold War-like tactics as their strategy.
In order to prevail, however, responsibilities must finally be assigned between the institutions and the focus cannot remain on insisting on unworkable measures.
As things currently stand, the IMF’s positions dominate, skewing towards unworkable measures and so coloring Europe’s position on the issue of the sustainability of the Greek debt, that there is a refusal to even discuss the issue.
The result: proposals that are not governed by reason.
On the contrary, the proposed measures only lead to a resurgence of the recession and to a further exacerbation of inequalities, while the deliberate avoidance to address the issue of the unsustainability of the Greek debt leads to a prolonged uncertainty and concerns about the very future of Greece and the Eurozone.
Ultimately, we are being asked to accept an agreement that will not resolve the issues at hand, and will sink an economy—that is on the cusp of recovery–into recession, a disincentive for any strategic investment.
If the objective is to continue with an IMF-inspired program–widely acknowledged as having failed–and without addressing the debt, then we are left with no choice.
We are obliged to not capitulate.
We call on our partners to be clear on their goals:
Do they want to achieve a solution to the Greek problem or do they want this problem to continue without end?
Do they want the IMF to be part of the agreement–despite its failed “recipes”–and will they proceed with an “a la carte” approach to the IMF’s measures?
To accept its tough measures but not its proposals concerning the debt write-off.
It should be noted that the IMF, as well, bears criminal responsibility for Greece’s current state of affairs.
After all, it was the IMF that erred on the multipliers, in its calculations on the recession.
And while the IMF has apologized, this has done little to help those who lost their jobs to live a life with dignity, nor did it feed the thousands of poor and socially excluded.
It did not increase pensions nor did it reopen small businesses that had gone under.
The apology was merely a cynical confession made by technocrats that had no consequences.
The time has come for the IMF’s proposals to be judged. And to be judged publicly.
Not by us, but by Europe itself.
The time has come for Europe to seriously discuss Greece’s future—and the future of the Eurozone itself.
Does it want, by insisting on its stance, to lead a country and its people to humiliation and impoverishment or does it want to reach an agreement and to further democracy and solidarity?
This is Europe’s dilemma. This is the critical question awaiting an answer.
Comrades,
As we have stated, and demonstrably and repeatedly proved, we will continue to work to reach an agreement.
The mandate we have from the Greek people, however, is not a mandate of creative ambiguity.
It is clear: To end austerity policy.
To do so, we must reach an agreement with clear redistributional features, that will not burden employees and pensioners but rather shift the burden to those who have not paid their fair share in the crisis.
We seek an agreement that will end the uncertainty, and decisively put an end to talk of a Grexit so that we can capitalize on positive economic indicators and take advantage of our real growth prospects.
Therefore, the agreement must include concrete and binding clauses that address the financing problems of the country, which were exacerbated by the memorandum—and which the institutions share responsibility for, as well.
Comrades,
We will base our final decisions on these specific criteria.
We will not be swayed by talk of anxiety and the “pressure” of the current moment.
We have a four-year mandate.
Any alternative scenarios will be assessed on the how the state of the economy, society, and country—overall– has faired in four years.
We received a country which was a debt colony.
Our goal is to deliver a country with fewer social inequalities, tackling both tax evasion and the widespread corruption of illegal networks plagueing the public administration.
To deliver a society that respects the principles of equality and the equitable distribution of burdens, and an economy based on sustainable development that can guarantee the welfare of all Greek citizens.
Above all, however, our goal is to build a social and economic model that will aid our society, especially the working classes and the young.
This is the challenge we are facing. A challenge that will be determined largely by the support of the Greek people. We have their support, and will continue to have it, so as long as we are honest with them and we passionately defend their interests.
Our composure, responsibility and determination, as well as the support of our people, will keep us above the fray of threats and blackmail.
Comrades,
We are entering the final stretch. The final stretch, one might say, is where the real negotiations begin. The ability of the Greek Government to achieve a fair solution with determination, with unwavering commitment to its goals, will be judged by the result. Europe’s ability to stop shooting itself in the foot, to stop the self-inflicted wounds and instead, champion the values of solidarity and democracy, will also be judged. I believe that it will do so.
This challenge is not ours alone. It is, of course, a challenge facing the Greek people and a challenge facing Greece, but it is not only our challenge–it is a challenge facing all the people of Europe.
We do not want a Europe of punishment and blackmail, but a Europe of democracy and solidarity. And we will achieve this Europe with our determination to maintain the popular mandate, as well as through the struggles of our people and the struggles of the people of Europe.
Be strong.
