Pages

Thursday, June 25, 2015

Greece is being blackmailed. Exiting the eurozone is its way out

Instead of acceding to the troika’s devastating demands, Syriza should free the country from the trap of the common currency – if the Greek people agreeA few days ago the Greek government submitted a list of proposals hoping to break the deadlock with the “institutions” – the European Commission, the International Monetary Fund and the European Central Bank. The government basically agreed to tough primary surpluses: 1% in 2015 and 2% in 2016. To achieve these targets it proposed to raise VAT on a range of widely consumed goods as well as imposing a host of taxes on enterprises and families of “high” income. It also proposed substantial savings on pensions. The measures added up to roughly €8bn over 2015-16, and would be immediately implemented.The package is certainly deflationary at a moment when the Greek economy is again on the threshold of recession. There is little doubt that it would contribute to output contraction and higher unemployment in 2015-16, particularly as there is little prospect of being offset by an investment programme funded by the EU. It is a major retreat by the government of Syriza.For those who look at the EU without rose-tinted glasses, there is no surprise regarding the attitude of the lenders Continue reading...


READ THE ORIGINAL POST AT www.theguardian.com