As
Greece Burns, SYRIZA-Led Gov’t Declares “Success Story” After
Neoliberal Takeover
Selling
a struggling nation to the highest corporate, oligarchic, and state
bidders may be just the way things work in the world, but please stop
trumpeting it as a great “success story.” Greece’s forests are
burning, its economy sold out, its citizens struggling more than
before they were “saved.”
Michael
Nevradakis
,
21
August, 2017
ATHENS,
GREECE — (Analysis) Exactly
two years ago, on August 14, 2015, the “leftist” SYRIZA-led Greek
coalition government — just over a month removed from a referendum
that saw 62 percent of voters rejecting a new austerity plan proposed
by the “troika” of Greece’s lenders, the European Commission,
the European Central Bank, and the International Monetary Fund — put
the final nail in the coffin of the referendum result,
passing the third, and most onerous to date, memorandum proposal,
foreseeing ever-harsher austerity measures, cuts, and privatizations.
Today,
the sweet smell of “success” is in the air.
If
by success, of course, you meant the smell of charred forest, then
you would be correct.
Greece
is burning, and not just due to the high summer temperatures. Dozens
upon dozens of forest fires throughout the country, which broke out
in the space of less than a week, have covered Athens and much of
Greece with a choking, smoky haze. Outside of Athens, huge forest
fires have raged over a span of over 25 kilometers and, as of this
writing, a period of three days, inundating the city with a smoky
haze.
It
could be said that this is the perfect complement to the winter
atmosphere in the city, when Athens is blanketed by a noxious smog,
the result of the burning
of makeshift fireplaces and furnaces keeping many of the
city’s residents warm; residents who can no longer afford
absurdly-taxed heating oil or to run electric inverters.
In
a 24-hour period between August 13 and 14, 91
fires broke out in Greece. On the island of Zakynthos alone, 22
fires occurred during this period, just a few weeks after earlier
fires burned parts of the island, which is a popular tourist
destination. Across the strait, the mainland region of Ileia—which
was heavily impacted by destructive and large-scale fires a decade
ago, in the summer of 2007—once again fell prey to fires that
ignited in multiple locations.
Both
a blessing—due to their capacity to moderate scorching summer
temperatures—and a curse, Greece’s famed August winds, known as
the “meltemi,” helped fuel many of these fires and aided in
spreading them across large areas, igniting multiple fronts. But the
outbreak of all of these fires and the scale of their intensity
cannot be attributed to heat and wind alone.
The
large fires in Zakynthos and outside of Athens, for instance, began
along multiple fronts within minutes, hinting at coordinated arson
attacks.
Indeed, evidence
of arson, including gas canisters and large convex lenses, have
already been discovered in Kalamos, the location near Athens where
one of the blazes originated.
Two
convex lenses placed next to a large canister of natural gas found
near Kalamos, a suburb of Athens.
On
August 15, a 62-year-old man, said to be an employee
of the Labor Ministry, who was in possession of numerous tools
with which a blaze could be lit, was caught
and arrested near Mount Parnitha, which itself had been
previously reduced to ashes following destructive fires in August
2007. According
to Gianna Tsoupra, adviser to the SYRIZA-affiliated regional
governor of the Athens region Rena Dourou, such fires are an
unfortunate “natural phenomenon.”
Greece
burns: who benefits?
Volunteers
try to extinguish the fire outside a military base at the village of
Varnava , north of Athens, Aug. 14, 2017. (AP/Petros Giannakouris)
These
fires could be described as a microcosm of much of what is wrong with
Greece — as well as with the institution the country supposedly
cannot survive without, the European Union. Greece today is the only
European country without
a national cadastre (forest registry). While areas classified as
forestland are constitutionally
protected, this classification is largely based on aerial
photography dating back to 1945 or earlier. The results are
often comical.
For
instance, a portion of the site of Athens’ former international
airport—slated for privatization and development by the same SYRIZA
government which prior to its election promised to abolish these very
actions—has been classified as
“forestland,” due to the vegetation which existed on the site in
the 1937-39 time period. Indeed, the lack of an actual complete
registry has led to a number of unintentional — or perhaps
intentional — consequences.
Burned
land can, for instance, be sold to developers and
then reclassified after
the fact. A 2011
study by the Athens Polytechnic Institute found that
approximately one million structures in Greece were constructed
illegally (including on land previously covered by forest). Flexible
legislation, such as Greek Law 4014/2011, allows such illegal
properties to be “legalized” upon the payment of a fine—a
practice viewed favorably for its lucrative income-generating
potential by both the Greek government and its “partners” in the
troika.
In
turn, this practice fuels—pun intended—more and more
fires. According
to GlobalForestWatch, over 150,000 hectares of Greek forest have
been destroyed since 2000, one percent of the total land area of the
country.
At
the onset of the Greek economic crisis, former government minister
Theodoros Pangalos—whose governments oversaw and tolerated many of
the aforementioned practices—stated, in anattempt
to ascribe collective guilt and blame to the entire populace
for the causes of the crisis, that the Greek people “ate it all
together,” implying that the citizenry collectively took advantage
of corruption and graft for its own benefit.
As
with many attempts at stereotyping, there is a grain of truth in this
statement. On the island of Crete for instance, the
“Residents Outside Town Planning” club represents
approximately 45,000 illegal homeowners.
However,
the beneficiaries of such practices extend beyond just a certain
segment of the Greek populace. “Ex-pats” who have relocated to
Greece from countries considered by many self-loathing Greeks
as “civilized” and “law-abiding” have taken advantage of such
laws to purchase properties constructed illegally. Indeed, “ex-pats”
looking to purchase property in Greece are evenadvised as
to how an illegal property can be legalized. These very same
“ex-pats” — reflecting arrogant, time-honored colonial habits
that die hard — are known for lecturing the clearly lazy, wayward,
and corrupt Greeks for engaging in such terrible practices as “tax
evasion” through the withholding of receipts for small purchases.
Meanwhile,
Greece continues to reap the benefits of its membership in the
“European family”—where, we are told, in a position supported
by the entirety of the political representation in the national
parliament, the country must remain “at all costs.” With Greece
in flames, the EU’s Civil Protection Mechanism obliged Greece’s
fire service, already stretched thin due to fires at home and
EU-supported economic austerity, to send
two firefighting planes to Albania to battle forest fires in
that country.
A
woman with a bucket walks among burnt forest land during a wildfire
near the suburb of Kaisariani in eastern Athens, on, Aug. 10, 2017.
(AP/Petros Giannakouris)
Conversely,
no corresponding mobilization seems to have occurred at the EU level
to fight fires in Greece. France, for instance, felt no need to
display “solidarity” towards its “European partner,”refusing
a request to send aerial firefighting aircraft to Greece,
citing its own difficulties with fires. It is unclear why Greece
could not respond in the same manner to the EU’s demands to send
planes to Albania.
In
a tacit admission of who truly controls the purse strings in Greece,
Giorgos Patoulis, the mayor of the northern Athens suburb of Maroussi
and president of the Hellenic Union of Municipalities
(KEDE), admitted
in a radio interview that Greece’s limited resources to
fight fires via aerial means are a direct consequence of the actions
of those who control the country’s public spending. Since 2016,
when the Greek Parliament essentially voted itself voteless, Greece’s
annual budget has been determined by the EU itself.
Greece: Business as usual?
Israeli
Prime Minister Benjamin Netanyahu, left, talks with Greek Prime
Minister Alexis Tsipras during their meeting in Thessaloniki,
Greece’s second largest city on Thursday, June 15, 2017. Under
heavy security Netanyahu is in northern Greece to discuss plans to
become a key supplier of European energy through an ambitious
Mediterranean undersea natural gas pipeline project. (AP/Giannis
Papanikos)
Following
the 9/11 attacks in the United States, with a country in mourning,
then-president George W. Bush famously uttered that America was “open
for business.” The current government in Greece is apparently
following the same playbook.
The
SYRIZA-led government, many of whose members once participated in
protest movements against apartheid Israel’s actions in
Palestine, recently
agreed to expedite efforts on the development of the EastMed
pipeline, which would transport natural gas from Israeli gas fields
to Greece, Italy, and Cyprus, in a project co-financed
by the European Union and previouslysupported
by the Obama administration.
Oddly
enough, the proposed pipeline route includes a 600-kilometer
overland route in mainland Greece, passing right through the
Mani region of the Peloponnese that burned
to the ground in early July.
Legislation
currently being considered would officially declassify urban green
spaces, such as parkland, that are currently considered “forestland”
and protected by existing constitutional provisions. Loosening these
protections would open the door to the economic “development” of
the little remaining green space in Greece’s overcrowded,
densely-populated, and haphazardly-planned cities. Meanwhile, in
December the Greek Parliament passed Law
4442, Article 33 of which relaxes prior regulations on economic
activity and the economic development of Greece’s archaeological
sites. This law was passed at the behest of Greece’s so-called
“saviors” in the troika.
According
to Greek Prime Minister Alexis Tsipras though — as well as to the
global neoliberal press that fawns over him and his commitment to the
“bitter medicine” of austerity — all is well in Greece and the
sweet smell of success, rather than that of smoldering ashes, is
indeed in the air. In an absurd
and comical interview published by the bible of “leftists”
worldwide, The Guardian, on July 24, Tsipras described a reality in
which apparently only he, his fellow government ministers and members
of parliament, and his supporters in the press and the troika
apparently reside.
In
this interview, Tsipras claimed that “the worst is clearly behind
us,” that Greece’s economy is “on the up,” and that his
government “will extract the country from the crisis.” He excused
his rejection of the referendum result of July 2015 as a “compromise”
that prevented Greece from turning “into Afghanistan.” This
statement reflects the same blatant fearmongering about the impact of
a Greek departure from the EU and Eurozone that is practiced by the
Greek and international mass media — which purportedly have fought
the “leftist” government of Tsipras — and by the main Greek
opposition, the neoliberal-right New Democracy party.
The
“objective” Guardian could not conceal its support for Tsipras’
brand of neoliberal “leftism,” peppering the article with
language excusing away the actions of Tsipras and his government.
SYRIZA’s first-place finish with 36 percent of the vote in the
September 2015 elections amidst record voter abstention is described
as a “mandate,” while the austerity measures imposed by the
troika are described as a “rescue programme” that may be
accompanied by “much-needed debt relief.”
Tsipras
himself defended his government’s position — to never consider an
exit from the Eurozone and the EU — on the grounds that Europe
would lose an important part of its history and heritage, an ironic
statement when one considers that it is Greece
that is losing its history, heritage, culture, language, and
especially its sovereignty as a result of its membership in
these institutions. This statement did, however, echo Tsipras’
January 25, 2015 victory speech that accompanied his initial ascent
to power, a speech that contained constant references to “saving
Europe” but no references to saving Greece, the country he was
elected to govern.
One
day after this puff piece was published by The Guardian, the
SYRIZA-led government and the international media (including, you
guessed it, The Guardian) triumphantly
proclaimed Greece’s “return to the markets” — as
Greece “successfully” held its first bond sale in three years,
selling 3 billion euros’ worth of five-year bonds at a yield
(interest rate) of 4.625 percent.
Compare
this to the yields of other EU member-states as of August 15,
including Belgium (-0.191 percent), France (-0.146 percent), Germany
(-0.284 percent); crisis-hit countries such as Italy (0.7 percent),
Portugal (1.089 percent), and Spain (0.217 percent); or even Romania
(2.6 percent). It is evident that the idea of a common market and a
common currency falls flat on its face. Greece’s 4.625 percent
yield can also be compared to those in such economic powerhouses as
Malaysia (3.622 percent), Botswana (4.2 percent), the Philippines
(4.659 percent), and Vietnam (4.681 percent).
The
government of EU and Eurozone member-state Greece is — in honor, it
would seem, of Pyrrhus and his “victory” — celebrating its
ability to once again borrow on the international markets, at rates
comparable to those of Vietnam and the Philippines and worse than
Botswana, in order to repay the “bailouts” (in reality, loans)
received from its creditors in the troika — which were used to
repay the debt that is blamed for thrusting Greece into its current
economic predicament in the first place!
Greek
Prime Minister Alexis Tsipras, left, welcomes European Commissioner
for Economy Pierre Moscovici at Maximos Mansion in Athens, July 25,
2017. Greece is poised to tap international bond markets for the
first time in three years in a move the government claims will
signal the country is ready to emerge from its bailout era.
(AP/Thanassis Stavrakis)
Reality,
however, must not be allowed to interfere with the sweet scent of
success. Hence another one of the Greek government’s and troika’s
recent success stories, the purported “loosening” of Greece’s
capital controls, imposed under the watch of the supposedly
“heroic” former finance minister Yanis Varoufakis, which have
restricted withdrawals from Greek bank accounts since June 28, 2015.
Earlier in August, the Greek government announced a new limit on
withdrawals from Greek bank accounts of 1,800 euros per month,
replacing the previous limit of 840 euros every two weeks.
Simple
math, however, demonstrates that the Greek government and its backers
in the troika must consider the Greek people extremely stupid: an 840
euro withdrawal limit each two weeks amounts to a maximum of 21,840
euros per year, while a 1,800 euro monthly withdrawal limit equates
to 21,600 euros annually — a reduction, in other words. The
Guardian, however, joined the Greek government and most of the
press corps in describing this as a “relaxation,” and further
evidence of Greece’s “success story.”
Notably,
this is not the first time that “fuzzy math” has been used to
“loosen” Greece’s capital controls. When initially imposed, a
limit of withdrawals of 60 euros per day was established. This 60
euro daily limit was “relaxed” in September of 2015 to a weekly
limit of 420 euros, which again equates to 60 euros per day.
In
July 2016, this limit was again “loosened”—by permitting
withdrawals of 840 euros every two weeks, which again equated to 60
euros per day and 420 euros per week. The current annual limit of
21,600 euros comes out to a daily mean of 59.18 euros per day, less
than when the capital controls were initially imposed in 2015!
Greece’s
“success story” is indeed so great that Greek justice minister
Stavros Kontonis, ininterviews with
Greek state television ERT and state news agency ANA-MPA, stated his
belief that the recent spate of fires in the country is the result of
an “organized plan to destabilize the country” hatched by unnamed
elements who do not wish to see Greece’s economic “recovery”
continue.
EU and media hypocrisy at its finest
On
August 1, the former head of Greece’s Statistical Authority
(ELSTAT), one-time IMF staffer Andreas Georgiou, was
issued a two-year suspended prison sentence by a court of
appeals in Athens on charges of breach of duty. Georgiou had
been accused
by whistleblowers such as Zoe Georganta, a former member of
ELSTAT’s board of directors, of manipulating Greece’s deficit and
debt figures to cause them to appear worse than they were in reality,
thereby providing the political impetus necessary to drag Greece
under the troika’s austerity and privatization regime. While the
charges of breach of duty related to the lesser crime of having sent
data regarding Greece’s 2009 budget deficit to Eurostat without
consulting with ELSTAT’s board, this nevertheless represented a
victory for those in Greece who have stood opposed to the austerity
policies of the past eight years.
Opponents
of “Brexit” and proponents of the European Union
often hysterically
claim that without the EU, human rights would somehow fly
out the window. They must not have seen the reaction to the Georgiou
case and the eventual verdict, on the part of the Nobel Prize-winning
EU. European Commission coordinating spokesperson for Economic and
Financial Affairs, Annika Breidthardt,expressed
“concern” over the Georgiou ruling, claiming that ELSTAT’s
independence was breached and that its members were not being
“protected in line with the law,” further adding that the
casewould
be examined by the Euro Working Group this autumn and that
an appeal would be a possibility.
Prior
to the verdict, Margaritis Schinas, the Greek-born chief spokesperson
of the European Commission and former member of the European
Parliament with the New Democracy party in Greece, again
relayed the Commission’s disappointment and waning trust in
Greece over the charges Georgiou was facing. Most damningly though,
it was revealed that one of the requirements that the Greek
government was obliged to enforce, in order to receive an 8.5 billion
euro tranche of loan funds (which had already been earmarked for
Greece due to the prior implementation of other troika demands), was
to fully cover the cost of Georgiou’s legal defense.
Coincidentally, of course, soon after these concerns were raised, a
clause inserted into legislation pending before the Greek
parliament provided for the full payment of Georgiou’s
legal defense costs by the Greek state, via ELSTAT.
Andreas
Georgiou, stands outside the headquarters of the Statistics agency,
in Athens, Greece. (AP/Petros Giannakouris)
Following
the European Union’s lead, the press corps could not conceal their
disappointment, seething over Georgiou’s guilty verdict. In
an August
4 editorial, Bloomberg described the prosecution of Georgiou as
“scandalous” and as “punishment” for “cleaning up”
Greece’s finances. That same day, The Washington Post — owned by
Jeff Bezos of Amazon andCIA
fame, and quick to label independent news sites such as Mint
Press News as “fake news” —
stated in an editorial that Georgiou was “scapegoated”
and was “only doing his job.” The Financial Timescharacterized
the Georgiou trial as a “farce,”
warning that the decision would “drive a wedge between Athens and
euro area creditors.”
In
turn, a
ludicrous Politico hit piececlaimed that Greece “condemned
itself” by “convicting an honest statistician” in a decision
that “raises questions about the integrity of the country’s
institutions.” The author of this particular article, Megan Greene,
seems to have taken on the side job of being
Georgiou’s public advocate on Twitter, where she also has
publicly demonstrated comfortable relationships with editors from
Greece’s neoliberal newspaper of record, Kathimerini, and with
Greek politicians.
Interestingly,
the “integrity” of Greece’s “institutions” was not called
into question when, for instance, the Areios Pagos, Greece’s
supreme court, ruled in early July that legislation rolling back
Greek worker rights — which was implemented as part of Greece’s
second memorandum agreement with the troika, and passed by the
government of the non-elected technocrat prime minister and former
central banker Lucas Papademos — was
constitutional. According to the decision issued by the court,
the laws in question had the purpose of increasing the
“competitiveness” of Greek businesses and it followed that the
resulting decrease in labor costs (wages) was therefore in the public
interest.
Not
a word of protest was uttered by the European Commission, the
Financial Times, The Washington Post, Bloomberg, Politico, Megan
Greene, or Kathimerini over this decision. Nor was the integrity of
Greece’s judicial institutions questioned when, later in July, an
appeals court in Athens ruled
that wage reductions of up to 45 percent were “legal and
constitutional.” Again there was silence from the European
Commission and its supporters in the press corps.
Indeed,
instead of protest, the president of the Areios Pagos was rewarded:
just days after the decision that found that the troika-imposed
cutback in worker rights was constitutional, the president of the
court, Vassiliki Thanou-Christophilou, was
hired as the supervisor of the legal office of prime
minister Tsipras, purportedly on a non-salaried basis. Notably,
Thanou-Christophilou had also served as Greece’s caretaker prime
minister for approximately one month, prior to the September 2015
parliamentary elections.
A “success story” – on paper only
Clearly
congratulating himself on a job well done, Tsipras is now reportedly
taking a vacation, while much of the country is up in flames,
literally and figuratively. And why not? Tourism is said to be
breaking records; unemployment is claimed to be on the decline; a
primary budget surplus has been achieved; the current austerity
program is claimed by Tsipras to be set to finish in 2018; the
government is again claiming it will launch a television and radio
licensing process to “go after” Greece’s oligarchs, and Greece
is even reported to be launching talks to join the BRICS’development
bank. Sounds great, right? Let’s deconstruct these claims.
The
August full moon has become an annual commemoration in Greece.
Occurring during the peak of Greece’s tourist season, the night of
the August full moon is a time when museums and historical sites
throughout the country open their doors to the public, hosting free
tours and live concerts.
This
year, the August 7 full moon was accompanied by a partial lunar
eclipse. And, this year’s crowds at museums and historical sites
were larger than in previous years. This could be attributed, in
part, to tourism. Greece is expecting to achieve record
tourist arrivals, which this year are projected to surpass 30
million visitors.
The
August full moon rises above the 5th Century BC Temple of Poseidon
at Cape Sounio, south of Athens, on Aug. 7, 2017. More than a
hundred of Greece’s ancient sites _ but not the Acropolis in
Athens _ and museums were kept open until late Monday and concerts
organized to allow visitors to enjoy the full moon, which is
accompanied by a partial lunar eclipse. (AP/Petros Giannakouris)
There
is another factor, however: while foreign tourists are arriving in
Greece in droves, Greek residents are increasingly stuck at home —
unable to afford even a brief vacation inside their own country and
deprived of the opportunity to enjoy Greece’s beautiful beaches,
islands, and countryside even for a few days. A 2016 study found that
domestic tourism has decreased
by 45 percent during the crisis.
Athens
neighborhoods that used to resemble ghost towns during August, were
this year only moderately less vibrant than during the rest of the
year. Unable to afford a vacation, many Greeks stayed home—and
likely attended those free full-moon events in record numbers.
Of
course, privatizations were supposed to “save” Greece, including
Greek tourism, justifying the sell-off of 14 profitable Greek
regional airports and the port of Piraeus, the largest port in Greece
and one of the largest in Europe. The 14 airports were purchased by a
consortium of investors led by Fraport, owned by the German state.
Proponents
of privatization in Greece, conditioned
over many decades to demonize anything and everything that
is publicly owned or operated, argued that this investment was
necessary to “improve” these airports and their “efficiency.”
Those “improvements” are already evident, as complaints have been
rolling in from travelers and employees alike: extremely
long queues and a lack of air conditioning have been
reported to be commonplace to a far greater extent than in the past,
indeed the new normal, while parking privileges for employees at the
Fraport-owned airportshave
all but been curtailed.
Quite
fittingly, the final agreement that was reached between the Greek
government and Fraport for the privatization of the 14 airports was
based on a royal
decree enacted by Greece’s “pro-western” post-war
government in 1953 and signed by King Paul, of German lineage through
the House of Schleswig-Holstein-Sonderburg-Glücksburg.
Such
privatizations have been touted as “investments” that provide
far-reaching benefits and jobs to the Greek economy, and as signs of
investor confidence in Greece. The benefits they have actually
provided Greece, however, are dubious, as seen in the case of
Fraport. This is also evident in the case of the Chinese-owned Cosco,
which purchased a controlling share in the entire port of Piraeus
from the Greek state in 2016, and which had previously purchased the
container port of Piraeus in an agreement with the then-government of
the Panhellenic Socialist Movement (PASOK) in 2011. What Cosco seems
to have actually delivered to Piraeus are Chinese-style
labor conditions, under which workers are, for instance,
encouraged to urinate into the sea instead of taking toilet breaks.
From
a tourism standpoint, however, these privatizations are part of a
larger negative trend that goes largely unreported: the profits from
these airports and seaports, which previously entered public coffers,
now go straight to Germany and China. In the meantime, the
“all-inclusive” and cruise-ship models of tourism are those that
have been most vigorously developed in recent years.
This
means that foreign visitors often arrive in Greece via foreign-owned
charter airlines or cruise ships, on vacations that are usually
booked with foreign travel agents and tour operators. They then spend
most of their time on the cruise ship or inside an all-inclusive
resort, contributing very little spending to the real economy. This
is evidenced by statistics showing that despite Greece’s record
arrivals, spending
per tourist is on a decline, at a mere 430 euros per visitor, 15
percent less than Greece’s nearest competitor in the region.
China,
of course, is also a member of BRICS, and it has been reported in
recent weeks that Greece has entered talks to formally
apply for membership in the BRICS’ New
Development Bank. Many opponents of neoliberalism around the
world have touted BRICS as an alternative to the existing economic
order. But is it really? China’s labor record, for instance,
suggests otherwise — as doesthe
Temer regime currently at the helm in Brazil, a favorite of
Washington, which is currently enforcing troika-style austerity and
is embroiled in corruption scandals. The same could be said of India,
which is on board with much of the Western world’s efforts
to eliminate
cash and physical currency.
But
what about Russia? Many in Greece believe that Russia and Vladimir
Putin can “save” Greece—if only Greece would turn its back on
the Eurozone, EU, and NATO. Throughout the crisis, it has been
rumored that there were secret plans for Greece to turn to Russia if
it could not achieve “bailout” deals with the troika, but there
seems to be no real evidence that Russia ever had such an aid package
prepared for Greece, or that it was ever willing to provide such
assistance. What is clear, however, is that Russia, like China
and like Germany, sees fertile ground in Greece for its own
investments.
In
Febrary 2016, a series of economic deals were signed between Greece
and Russia. At the time, the Russian government expressed its
interest in a number of potential privatization deals in Greece.
Flashing forward to April of this year, a
majority share (67 percent) of the port of Greece’s second
largest city, Thessaloniki, which is viewed as a strategic gateway to
the Balkans, was privatized. The buyer? The Deutsche Invest Equity
Partners-CMA consortium, in which a major investor is a business
figure by the name of Ivan Savvidis.
Who
is Savvidis? Born in Georgia when it was part of the former Soviet
Union, Savvidis was employed in a state-owned tobacco factory during
the Soviet years, becoming its general director soon after the
collapse of the USSR and subsequent privatization of the factory.
Savvidis was previously a deputy with Russia’s ruling party, United
Russia, in the country’s parliament. He is also chairman of the SKA
Rostov-on-Don football club in Russia.
Prior
to the 2010s, he was unknown in Greece, and there is some question as
to whether he had even visited the country. In recent years, however,
he has made his presence felt in Greece—especially since SYRIZA
ascended to power. It could be said that he’s followed the path to
power and influence that is preferred by the Greek oligarchic class.
His
first big splash was through the purchase of the PAOK football club
in Thessaloniki, joining the ranks of other oligarchs who own
football teams in Greece. His group of companies has made various
investments in Greece, such as in the field of tourism, where he has
bought out various hotels and established an aviation company.
More
recently, Savvidis began his foray into Greece’s utterly corrupt
media sector, first via his participation in last year’s licensing
bid for nationwide television licenses — a process
ultimately struck down by Greece’s highest administrative court due
to constitutional irregularities. Unabated, he has purchased the
major daily tabloid Ethnos and financial newspaper Imerisia, as well
as a share in
the financially struggling national television station Mega Channel.
These purchases were followed by his buyout of
another national television station, Epsilon TV, earlier this month.
These
purchases have solidified Savvidis’ place in the Greek media
landscape, just in time for the relaunch of the licensing bid for
nationwide television stations by the SYRIZA-led government.
Following the rejection of last year’s bidding process by Greece’s
administrative high court, the government has set up a new bidding
process, this time in conjunction with the purportedly independent
national broadcasting regulator, but which repeats many of the same
lies that were heard prior to last year’s bid. These lies
pertain particularly to the number of stations that the television
spectrum can “fit” — a number that has now increased to seven
national stations from four last year, but that is still far fewer
than in other countries (such as Italy),
and that all but ensures the continuation of an oligopoly controlled
by a few powerful actors, namely Greece’s traditional oligarchs and
more recent entrants like Savvidis.
For
the SYRIZA-led government, however, this forthcoming television
licensing bid—which is said to be likely to extend to radio as
well, with onerous requirements that smaller and rural stations will
likely be unable to fulfill—represents another part of its “success
story,” via the “fulfillment” of one of its many campaign
promises, namely to “restore law and order” to the broadcast
landscape. In reality, though, whereas the main opposition party
SYRIZA promised to “crush” the oligarchs once in power, it is now
preparing to turn the media landscape over to them officially. It
should be noted at this point that the entirety of Greece’s major
media owners have maintained, throughout the crisis, a staunch and
unflinching pro-EU, pro-Eurozone, pro-austerity line.
The
puff piece published by The Guardian touted the drop
in Greece’s official unemployment rateto 21.7 percent, from a
peak of 27.9 percent in 2013, as yet another aspect of SYRIZA’s
“success story.” Much is left unsaid, however: the long-term
unemployed, who are not counted in the statistics; the 500,000-plus
person “brain drain” out of Greece during the crisis years; the
poor working conditions and paltry wages of many of those who are
still employed; part-time jobs that are counted as “full”
employment; the aforementioned rollback of worker rights; the job
insecurity that workers face, including going months at a time
without pay or enduring unpaid overtime, and their fear of leaving
due to the uncertainty of being able to find any other job; and so
forth.
Just
the 500,000-plus person brain drain alone would be enough for
Greece’s unemployment rate to skyrocket, had these individuals not
emigrated.
Ah,
but Greece has attained—and maintained—a primary budget surplus,
which reached 3.05 billion euros in the first seven months of 2017.
That’s good news, right? Not if one considers what a primary budget
surplus actually is. Briefly, it means that the Greek state is
spending less than it is taking in as revenue. While this may sound
prudent, what decades and centuries of experiments in economic
austerity have
demonstrated is that for countries experiencing a severe
economic depression, as in the case of Greece, maintenance of a
primary budget surplus merely exacerbates the problem: money is
sucked out of the real economy and not returned to it.
As
spending continues to decrease in a cash-starved economy where taxes
are increasing and wages are declining, more and more cuts have to be
made to government spending in order to meet surplus targets,
perpetuating a never-ending death spiral.
In
the case of Greece, the SYRIZA-led government, in an agreement with
the troika earlier this year, pledged to maintain a primary budget
surplus of 3.5 percent of its GDP each year through 2023, and 2
percent annual surpluses thereafter until 2060. Tsipras’ claims,
therefore, that Greece’s austerity program will come to a
close sometime in 2018 are laughable: the maintenance of primary
budget surpluses is, by definition, the continuation of
austerity—which Greece has pledged to continue for (at least) the
next 43 years!
But
nevertheless, the smell of success is in the air. Prime Minister
Tsipras and The Guardian say so, after all. The problem is, that
scent hasn’t been detected by ordinary Greeks or by small business
owners. Just in the first half of 2017, more
than 15,000 businesses shuttered in Greece. But while the
SYRIZA-led government is preparing to “crush” Greece’s
oligarchs — who, like oligarchs the world over, evade their fair
share of taxes by shifting profits offshore — the state has gotten
to the bottom of Greece’s supposed problem with tax evasion via
other apparently more effective means.
In
July, a man who has been unemployed since 2010 and whose income
consisted of 24 cents in interest from his bank account, was issued a
4,470 euro tax bill, as the Greek tax system presumes that
citizens have a certain income level if they have a bank account,
home, or automobile in their possession—even if they are
unemployed, even if the property was inherited, even if the citizen
is in fact currently impoverished.
In
another case, a 49-year-old man in the town of Almiros was arrested
and fined for the offense of selling 20 watermelons and 12
cantaloupes without a valid license. Greece’s television and radio
stations, however, have operated without official licenses for
decades, without anyone so much as batting an eyelash.
In
yet another example, if you are a property owner in Greece, rental
leases must now be submitted electronically to the tax authorities,
with the owner immediately taxed on a percentage of the foreseen
rental income for the entire year—before that income has been
earned for the year! If, as in the case of a neighbor of this author
in Athens, a renter skips town without having paid rent, the owner is
nevertheless taxed on this “income.” The deadbeat tenant’s
inability to pay–and your consequent taxation on “income” never
received–is apparently your problem, not that of the tax office or
finance minister!
An uncertain future, not a “success story”
A
house damaged by the forest fire stands among pine trees north of
Athens, at Kalamos, on, Aug. 16, 2017. (AP/Ioanna Spanou)
As
this piece is being written, the smoky smell of the fires raging
outside of Athens still hangs ominously in the air, on a day that is
supposed to be a national holiday in Greece. For the prime minister
and the members of the SYRIZA-led coalition government — as well as
for the unabashedly pro-EU, pro-euro, pro-austerity press corps —
it is the sweet smell of success that is hanging in the air. Success
that exists, if at all, on paper only, as far removed from reality as
the government that is nominally in control of the country, and the
European and international institutions that are actually at the helm
— in Brussels, Berlin, and elsewhere.
A
decade ago, in the summer of 2007 and in the aftermath of the
aforementioned destructive fires on Mount Parnitha and the Ileia
region, an anonymous call went “viral” via SMS text messaging and
bloggers, calling upon citizens to wear black and to descend upon
Athens’ Syntagma Square, and other central points throughout
Greece, for a “non-partisan” protest against
the then-New Democracy government for its response to the blazes.
This was perhaps the first such protest in the country’s modern-day
history. Strangely, following the destructive fires of this summer
and despite almost ubiquitous smartphone and social media usage, no
such similar calls have been extended.
Were
the 2007 protests an aberration? Possibly. In Greece, the
“Indignants” movement disappeared, never to reappear again, after
the summer of 2011 and a last hurrah in February 2012 consisting of
protests against the second memorandum. In the weeks leading up to
the 2015 referendum, a “Solidarity with Greece” movement emerged
in major cities in Europe and North America, where academic leftists
and ivory-tower activists who somehow were able to procure large
quantities of SYRIZA flags, organized rallies against the “blackmail”
and “coup” SYRIZA and the Greek people were facing at the hands
of the European institutions — which were apparently not evil
enough, however, to warrant advocating in favor of “Grexit.”
Following
SYRIZA’s wholesale rejection of the referendum result though, an
interesting thing happened: this “solidarity” movement largely
disappeared — as did its rallies, though perhaps not the SYRIZA
flags. Today, a key participant in these rallies, Irish author and
“eurocommunist” activist Helena Sheehan, is shilling her
recently-published book, Syriza Wave: Surging and Crashing with the
Greek Left. Sheehan has taken advantage of the public
catfight between Tsipras and Varoufakis to generate some
extra publicity for her book, which she admits she was not the best
qualified to write.
Nevertheless,
Sheehan gently chides SYRIZA for its capitulation and its supporters’
broken dreams, but does not question the European path followed by
SYRIZA and by its predecessors before it. The “European dream”
and open borders are a good thing, whereas restoration of national
sovereignty is “fascist.” Sadly, there was no word from Sheehan
as to when the “solidarity” rallies would take to the streets
once more.
Returning
to political reality, opinion surveys in Greece, to the extent that
they can be trusted, consistently show the former governing party,
New Democracy, with a steady and sometimes overwhelming lead. Popular
sentiment on the street is that whenever new elections are held
again, New Democracy will emerge victorious—though it is likely
that they too will fall far short of a parliamentary majority, even
with the 50-seat parliamentary bonus undemocratically awarded to the
winner.
Just
in case anybody believes New Democracy will represent a change in
direction for Greece though, they would be wrong. It was two years
ago when, following the referendum that overwhelmingly rejected the
troika’s new austerity proposal for Greece, the SYRIZA-led
government turned its back on the result and rammed through
memorandum agreement number three for Greece, upon which much of
today’s continued cuts, privatizations, and austerity are based.
However,
the third memorandum could not have been successfully passed in
parliament without
the votes of the members of former ruling New Democracy and
“socialist” PASOK parties, as well as upstart pro-establishment
party To Potami. New Democracy, like SYRIZA today, brought Greece
back to the international financial markets via a bond tender in late
2013 with a similarly high yield — and, like SYRIZA, declared
Greece a “success story” and claimed the end of the crisis was
nearing.
For
Greece’s “saviors,” there’s a scent of success in the air.
But for the rest of the Greek populace, what’s in the air,
literally and figuratively, is the scent of destruction. In a country
where, over the past decade and more, Greece’s agriculture,
industry, economy, the dreams of its people, and the country’s
future have been methodically burned, why not the nation’s forests
as well?
Top
photo: A resident tries to extinguish a forest fire at Kalamos
village, north of Athens, on Aug. 13, 2017. A total of 53 wildfires
broke out in Greece Saturday and more have done so Sunday, including
on the beach resort of Kalamos near Athens. (AP/Yorgos Karahalis)
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