Greece's Prime Minister Alexis Tsipras on Sunday attacked Europe's creditor powers for insisting on what he described as “absurd demands” and come close to warning that his far-Left government will not submit to these demands and will instead take action “to entirely transform the economic and political balances throughout the West” if pushed any further.
“The lack of an agreement so far is not due to the supposed intransigent, uncompromising and incomprehensible Greek stance,” Tsipras wrote in a column published by French newspaper Le Monde.
“It is due to the insistence of certain institutional actors on submitting absurd proposals and displaying a total indifference to the recent democratic choice of the Greek people,” he added.
Tsipras said the eurozone's dominant players were by degrees bringing about the “complete abolition of democracy in Europe” and were ushering in a technocratic monstrosity with powers to subjugate states that refuse to accept the “doctrines of extreme neoliberalism”.
“For those countries that refuse to bow to the new authority, the solution will be simple: Harsh punishment. Judging from the present circumstances, it appears that this new European power is being constructed, with Greece being the first victim,” he said.
According to The Telegraph Mr Tsipras's choice of words also implies that Greece may turn its back on the Western security system, presumably by shifting into the orbit of Russia and China.
Greece’s government has repeatedly expressed confidence that an agreement is within reach. However, a deal has so far proved elusive as the creditors are demanding greater reforms in return for the cash, which Tsipras's government -- elected on an anti-austerity bill -- has refused to match.
The standoff over the terms attached to emergency loans has triggered a liquidity squeeze and record deposit withdrawals, tipping the economy back into recession.
Officials from Greece have been locked in talks with creditors over the weekend in an attempt to agree a package of economic reforms and unlock 7.2 billion euros in bailout funds. Outstanding issues include pensions, labor market reform, VAT rates and Greece’s budget targets.
Tsipras said in his article that Syriza has agreed to work with the International Labor Organization on flexible work practices but it will not abandon its core demands for full collective bargaining protection. He also added that reforms for retirees mandated by the country’s bailout agreement aren’t fit for a civilized country.
Rather than imposing further austerity that has so far only served to drive Greece into a deeper recession, he said his government has also submitted proposals to raise revenues.
These include a special tax on the very wealthy, greater efforts towards clamping down on tax evasion, and putting broadcasting and other licenses up for tender.
With technical talks yielding no breakthrough, Tsipras is seeking the intervention of German Chancellor Angela Merkel and French President François Hollande. The three leaders held a call on Sunday to discuss to discuss the situation. All three leaders reiterated the need for a quick agreement, according to one official in Athens. Merkel and Hollande are scheduled to meet in Berlin on Monday.
In an interview with the Italian newspaper Corriere della Sera on Sunday, Economy Minister George Stathakis said that he expects a “technical solution” with creditors “in a few days.” The accord would be followed by a meeting of eurozone finance ministers to unlock financial aid. Stathakis reiterated that there will be no problem with the first payment due to the IMF on June 5.
Meanwhile senior government members, including deputy prime minister Yannis Dragasakis, denounced the appointment of the Greek-American economist Elena Panaritis as Greece’s representative at the IMF. Panaritis, who has worked at the World Bank in the past, had formerly represented the pro-bailout Pasok party as an honorary MP.
PASOK accused Panaritis of being a “political opportunist.”
(AFP, Reuters, Blomberg, Guardian)