Friday 30 September 2011
The outstanding debt of Greece is on a daily basis on the front pages of international newspapers . Discussions are organized by academics and special reports are broadcasted on radio and television stations . Everything seems to be about numbers nowadays . Money , as they say , makes the world go round . Value , interest rate , debt , investment , profit , risk are the new terms that even ordinary citizens must become accustomed to .
I always considered myself a black sheep . I never perceived the money as the reason for living . On the contrary I treat them as a means , necessary yes , but not what defines my aspirations and actions . I am dependent on less substantial ‘values’ , such as people , memories and emotions . Not much of a mathematician / calculating mind either , I instead prefer to let my psyche guide me . That has its pros and cons , nevertheless I strongly believe that the first far outnumber the latter . I enjoyed the privilege to study in the scientific field of social sciences / humanities . That is why I feel obliged to underline two concepts that elude the technocratic analyses of Greece’s bleak economic present and doubtful future .
DEMOCRACY
Let’s start with the meaning of democracy . In the latest general elections (October 2009) the percentage of voters that participated in the process was 70,92% (amounting approximately to 6,8 million persons) . From the votes casted 2,64% was invalid , thus reducing the essential participation to 68,28% of the electorate . The now governing political party , PASOK , received the 43,92% and secured 160 seats in the Parliament . From the remaining 140 seats , the previous government (NEA DIMOKRATIA) secured 91 (33,48%) , the communist party (KKE) 21 (7,54%) , the progressive leftish party of SYRIZA 13 (4,60%) and the nationalist LAOS 15 (5,63%) . You can check the numbers yourselves at the websites In.gr (http://archive.in.gr/news/Elections2009/ ) and National Elections 2009 (http://national09.ekloges.dolnet.gr/ ) . Democracy is the political system where the power (and therefore legitimacy) stems by the people and for the people , where the will of the majority prevails while the minority is respected and protected , where every citizen has equal access to social and political rights – regardless of economic situation , race and religion . The political leadership is elected for a predetermined time period and is accountable to the public , according to its program and declared priorities . As for the different elements of governance , the three prime sectors / factions (administrative , judicial , law-making) are independent and with clearly distinct modus operandi .
The numerical data that were presented show beyond doubt that the votes of 3 million individuals shape the future of a total population of 10-11 millions . The 10% difference in votes between the two strongest political parties equals to 70 more seats in a parliament of 300 representatives . That is the first sign that something is terribly wrong with Greece’s version of democracy . Moving on to more alarming facts , we cannot overlook the fundamental deflections of the practiced policies as compared to the official statements before and even after the election period . In the 47 pages of PASOK’s 2009 program (available electronically at http://www.google.gr/url?sa=t&source=web&cd=13&ved=0CCMQFjACOAo&url=http%3A%2F%2Fwww.pasok.gr%2Fcontent-api%2Ff%2FbinaryChannel%2Fnewpasokportal%2Fdatastore%2F8f%2F81%2F92%2F8f819226886f108de061ece0d30cd2265938cac6%2Fapplication%2Fpdf%2FcontentDispositionType%2Fattachment%2Fto_programma_mas.pdf&rct=j&q=%CF%80%CF%81%CE%BF%CE%B5%CE%BA%CE%BB%CE%BF%CE%B3%CE%B9%CE%BA%CE%BF%20%CF%80%CF%81%CE%BF%CE%B3%CF%81%CE%B1%CE%BC%CE%BC%CE%B1%20%CF%80%CE%B1%CF%83%CE%BF%CE%BA%202009&ei=UyF9TuSEFYLB0QWv05zrDw&usg=AFQjCNGFF2l6S2RYbYVgYiIIUhDApZ6PUg ) we can read promises about :
- increases in both the wages and the pensions (with a final target of a minimum pension of 550 euros for a single person and 950 euros for the couple) , above the inflation rate
- 12 month freeze in the prices of electricity , water and phone bills
- tax cuts for the small-medium sized real-estates , along with stricter taxes for the large properties
- increase 4% of GDP in public spending / investments
- subsidies (as far as social security expenses are concerned) for the newly hired young people for a period of 4 years
- unemployment benefit up to 70% of the unqualified worker’s basic wage
- supervision of the compliance of the private sector with the labour laws
- no taxes over a five year term for newly established small enterprises of young people
- acceleration and simplification of the legal prerequisites for the foundation of enterprises , ranging from one to a few days
- higher taxes on transactions with off-shore companies
- reinforcement of the public transportation system , in order to cover the needs of every geographical region of the country and lead to a reduction in the emissions of CO2 from the use of private transportation means
- modernized diplomatic methods , via multi-track diplomacy , with emphasis in the economic / humanitarian interstate relations
Not a single of the above commitments was kept whatsoever . The wages and pensions were diminished as new cuts were imposed and the option of individual contracts (circumventing the collective agreements between employers and employees and changing the balance of negotiating power) was introduced in the private sector of the economy . The inability or unwillingness to combat tax evasion resulted in heavy taxes on the employees of the public sector , on the pensioners (the only two categories of citizens that cannot hide their income) , as well as on commodities that are considered social goods and linked to every household (electricity-water-phone bills , community fees , oil and natural gas prices , housing / property taxation) . Incentives were given to squatters of public property to buy out / legalize their illegal acquisition of land . The announced reduce of tax-free threshold from 12000 euros to 5000 euros (Autumn 2011) signaled for the first time in modern Greek history the surcharge of individuals living under the national poverty limit of 6500 euros . The high unemployment rate (15% for the first quarter of 2011 according to Eurostat , http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics ) and the steady inflow of illegal immigrants who are hired for a fraction of the wage of a Greek citizen or a legal foreign worker have a dramatic effect on labour laws , which have become elastic and in many cases exist only in theory . The lay-offs and internal swaps of employees in public administration agencies have increased bureaucracy . The public transportation system’s schedules show significant delays and discourage the citizens from using it . The multi-track diplomacy remains a line on a piece of paper , as is the case with the economic expansion in the Balkans and the attraction of direct foreign investments .
The Prime Minister George Papandreou , in a speech before the general elections of 2009 , uttered the phrase ‘There are money’ , using as an example the decision of the then government of NEA DIMOKRATIA to support the financial institutions (i.e. the Greek banks) with dozens of billions euros . Mr Papandreou later specified that money can be found through stricter control of the public expenses and the elimination of tax-evasion (including the money transfers from wealthy Greeks to bank accounts abroad and off-shore companies through improper channels) . When Greece was forced to ask for the help of IMF and fellow member-states of the European Union in order to continue to being able to pay wages and pensions (in other words , to avoid default , collapse and social anarchy) , Prime Minister Papandreou put the blame on the oversized deficit and external debt , claiming that he was under the impression that the deficit was substantially lower and accusing the previous administration of NEA DIMOKRATIA / Konstantinos Karamanlis of lies and false data . However , George Provopoulos , head of the Central Bank of Greece , has admitted to informing both political leaders of the deficit being at 8% on September 2009 and warning of a possible increase to 12% by the end of that year (Greek newspaper Kathimerini , http://news.kathimerini.gr/4dcgi/_w_articles_politics_1_04/05/2010_399715 ) . Neither the former nor the current Prime Minister objected to Mr Provopoulos’ statement . Eventually the deficit for 2009 reached 13,6% (Reuters , http://www.reuters.com/article/2010/04/22/us-eu-deficits-idUSTRE63L1G420100422 ) and the external debt reached 391 billion euros (from 200 billion euros in 2008 , as reported from Greek newspaper Kathimerini , http://archive.ekathimerini.com/4dcgi/_w_articles_economy_1_01/10/2009_111155 ) . Furthermore , the former director of IMF , Dominique Strauss Khan , said in an interview with the French television station CANAL+ (Canal Plus) that the Greek Prime Minister Papandreou had already started talks with the international organization from as early as December 2009 (that is two months after the October 2009 general elections) . The conversations were conducted in secrecy , while Mr Papandreou officially stated after the European Council of December 2009 that the option of IMF was out of the question (Greek newspaper Kathimerini , http://news.kathimerini.gr/4dcgi/_w_articles_politics_1_20/02/2011_433401 ) . Greece announced its intention to ask IMF for help in the first half of 2010 (the relevant memorandum was signed on May 9th) . That is the second sign that democracy in Greece is rhetorical rather than pragmatic .
The example of the latest general elections is not the exception . When Konstantinos Karamanlis (Jr.) became Prime Minister with the central-right political party of NEA DIMOKRATIA in 2004 and again in 2007 he had promised to fight corruption and stick to objective criteria as far as hiring in the public sector was concerned . During his 5-year administration (2004-2009) , the biggest number of political scandals in post-Junta Greek history was reported , ranging from the cover-up of an industrial cartel in milk and relevant products to the exchange of high value real-estate public property with substantially low-valued monastery property of ‘Moni Vatopediou’ of Mount Athos . The participants in the selection process for a position in the public sector were judged mostly by their results on an newly introduced oral interview rather than their scientific qualifications , which lead to generalized irregularities in favor of NEA DIMOKRATIA voters . A number of NGO’s , many of them without any previous contribution in the society or even without physical headquarters , received generous subsidies for reasons unknown . And let’s not forget the external debt which doubled from 200 to 391 billion euros in less than two years , prompting Mr Karamanlis to virtually surrender the governance two years after his second election in 2007 (in order to avoid the drastic measures that would have to be taken to harmonize the deviation of Greece’s financial data) .
And before NEA DIMOKRATIA and Kostas Karamanlis , the government headed by Mr Kostas Simitis (leader of central-left political party PASOK) between 1996-2004 was involved (as it turned out later by confessions of Prime Minister’s Simitis two closest counselors Tasos Madelis and Theodoros Tsoukatos) in bribery scandals from the German multi-national company Siemens . Perhaps the most extensive and damaging scandal of that period was the one related to the Hellenic Stock Market , which collapsed in 1999 , after a long period (at least 24 months) of continuous growth that attracted more and more average citizens to invest part of their income and almost the totality of their deposits , under the blessings of the Greek government that repeatedly presented the stock market as the proof of the robustness of the Greek economy . One cannot but wonder how both the Prime Minister (Konstantinos Simitis) and the Finance Minister (Giannos Papadoniou , 1996-2001) of a country hadn’t even the slightest hint of the stock market bubble , especially when vast amounts were invested (and were withdrawn before the bubble burst) by PASOK executives and members of Parliament (such as Stephanos Manikas and Michalis Neonakis) . Add to the above the Greek statistics scandal , with the collaboration of Goldman Sachs (http://www.spiegel.de/international/europe/0,1518,676634,00.html ) , which permitted the participation to the common currency (euro) , and the scandal of the military expenditures (with German companies enjoying the majority of contracts) and you have a clear image of the mess that politicians present as ‘democracy’ but someone with common logic would name ‘oligarchy’ .
Secret diplomacy is not something unusual in international affairs . Trusting someone to govern a whole nation and plan your future based on blatant lies is something entirely different . Legitimacy goes hand in hand with morality . Vote is a social contract . It binds the two sides . The elected representatives are supposed to be in the service of the people . The notion that the voters are incapable of logical assumptions and clarity of thought and , therefore , must be kept in the dark is racist and wrong . It resembles colonialism , with a few self-characterized wise men designing what is best for millions . Once a government is elected , there are virtually no alternatives to retain some degree of popular control over its actions . If it holds the majority of seats (151/300) , only the desertion of one of its members can lead to elections . Due to the present model of political participation (common mostly in the western societies) , where two political formations monopolize governance , party members are reluctant and perhaps afraid to perform such a bold act of disobedience , which would mean the removal from the team and probably the end of their political career (unless they enjoy vast popularity in their constituency / electoral district) . Even though the 4-years term of each Greek government is not always exercised , a lot of damage can be done in the 3-3,5 years that usually pass until the repeat of the voting process . A solution could be the taking place of obligatory referendums in a yearly basis (with the explicit question of whether the government continues to enjoy the support of the people / voters) and occasionally whenever arises a matter of national impact / interest .
JUSTICE
Justice in a constitutional democracy is to be treated equally in terms of rights and obligations , according to the letter and the meaning of the law . There are some exceptions as far as economic obligations are concerned , meaning that citizens are contributing according to their income status . However that analogy doesn’t expand to political and personal / social rights . Social justice is the notion that the less privileged members of society must be protected and supported , not marginalized . It also means that the majority of the people must embrace as a fact that the political and economic system of governance is correct and works . That acceptance provides compliance with the rules , balance among the different social classes and sub-groups and cohesion for society as a whole . Greece lacks justice , social or otherwise . The austerity measures have dramatically changed the everyday life . The nation is already under the shadow of national depression . Looking back , we have to admit that for the last decades the wealth (regardless if it was generated by genuine economic activity or European Union’s funding) was directed mainly towards a handful of individuals and , in spite of changing the quality of life for the majority (due to improvements in the infrastructure and social benefits) , a significant percentage of the Greek population remained outside the fancy celebration and the climate of euphoria . According to the UN Data , the unemployment for Greece(for persons older than fifteen years old) was 10% in 1995 , 12% in 2000 and 10,5% in 2005 . The CIA World Factbook offers not so different percentages (often as estimates) : 10,1% in 1995 , 11,3% in 2000 and 10,8% in 2005 . As far as the population below national poverty line is concerned , Greece isn’t included in the countries documented by the United Nations . However , the European Commission in a report about Regional Policy (http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/p122_en.htm ) mentions a percentage of 21-22% for the year 1996 . And the aforementioned CIA publication (https://www.cia.gov/library/publications/the-world-factbook/geos/gr.html ) lowers the percentage to 20% for 2009 . Now , during the worst financial crisis in the history of post-war Greece , Eurostat raises the unemployment rate to 15% for the first quarter of 2011 (http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics ) and the deep recession will probably worsen the situation . Already estimates predict 20%-26% unemployment for the coming 2012 (Greek newspaper Eleftherotypia , http://www.enet.gr/?i=news.el.article&id=313376 – article in Greek) . And if we add the part-time and uninsured work , the actual number will be far greater .
Isn’t it astounding that in a country that combines corruption , political scandals and poverty , not even a single politician has been brought to justice , let alone convicted ? The current legislation provides amnesty for the Prime Minister and Ministers , for actions committed during their term . That provision is unjustifiable and separates the common citizen from the one controlling the future of the nation . Also , no assistant of the Prime Minister , Minister or Member of Parliament has been convicted of corruption or relevant crime . Could there be an explanation ? Well , either Greece has the most decent politicians in the world (Transparency International and Greek citizens alike beg to differ) or the corruption has spread to the judicial system . And that , fellow readers , is the plague of the modern Hellenic state . Even if you can’t punish a member of the Parliament , you can restrict and convict the persons (administrative personnel , friends and/or family members) that were part of an illegal scheme . Greek judges are very keen to impose the law on hapless beggars , drug-addicts , protesting youngsters or retired old people . They also have an impressive record of family members hired to the best positions of public administration . Unfortunately , they haven’t been as energetic in upholding the law when rich and powerful are (or ought to be) under investigation , with most cases becoming invalidated by the process of prescription due to time-limit . That applies to politicians , entrepreneurs , media moguls .
Let us not fool ourselves . There is never a perfect crime . Justice may be blind (sign of objectivity) but in our case is both blind and deaf . It is inspiring to see the less privileged retain a minimum of dignity , courage and (above all) humanity and , on the contrary , it is painful to witness those who should be the cornerstone of the rule of law sell themselves on the highest bidder .
If the European Union wants to help the Greek people overcome the financial crisis , then they have to discern the political and social background . Simply lending money and allowing the same individuals responsible for a dysfunctional economy to do business as usual is the best recipe for failure . And if Greece falls , the anarchy and chaos will sooner or later affect the adjacent European countries , which will be the receivers of thousands of illegal immigrants from Asia and Africa . The society is deeply divided , with the 300 MPs and their corporate backers standing against the rest of the people . The continuous threat of default and regression to the living standard of the 1960s works up to a point . The fear works up to a boiling point . After that , threats and fears are either hollow or a reality and , therefore , unable to keep the tide back . Greek citizens have already paid dearly and the suicide rates have doubled (Wall Street Journal , http://online.wsj.com/article/SB10001424053111904199404576538261061694524.html ) . Behind the numbers , there are lives . Lives and dreams turned into nightmares . Common folk have made serious mistakes but they cannot be blamed for the lack of political choices and candidates . Politics is an expensive hobby and few can compete . If you don’t vote you are a pathetic citizen and responsible for the disaster that has befallen us , if you do vote you must account for the stagnant political scenery of Greece – so again you are responsible for the disaster that has befallen us . What kind of choice is this ?
The IMF and the EU must demand an inquiry as to the political responsibilities for the current situation in Greece . Personally , I would also like to see the European Union establish a monitoring mechanism for the judicial systems of the member-states and offer in the future the option to individuals and groups to ask the judicial intervention of the European Court for cases of great economic / social significance with political entanglements , when the national judges disgrace their role and the trust of a whole society , either due to incompetency or due to corruption .
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