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	<title>www.reinform.info &#187; France</title>
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		<title>Kurds rally in Paris for faster inquiry into activist killings</title>
		<link>http://www.reinform.info/?p=7123</link>
		<comments>http://www.reinform.info/?p=7123#comments</comments>
		<pubDate>Sun, 12 Jan 2014 00:05:44 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[Kurdistan]]></category>
		<category><![CDATA[Kurdistan Workers]]></category>
		<category><![CDATA[PKK]]></category>
		<category><![CDATA[Sakine Cansiz]]></category>
		<category><![CDATA[Turkey]]></category>

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		<description><![CDATA[Thousands of Kurdish demonstrators from around Europe marched in Paris on Saturday to call for a speedier investigation into the murder of three Kurdish activists a year ago. Sakine Cansiz, a founder of the Kurdistan Workers Party (PKK) in the early 1980s, and two other Kurdish women were found shot dead in Paris in January [...]]]></description>
				<content:encoded><![CDATA[<p>Thousands of Kurdish demonstrators from around Europe marched in Paris on Saturday to call for a speedier investigation into the murder of three Kurdish activists a year ago.</p>
<p><span id="more-7123"></span>Sakine Cansiz, a founder of the Kurdistan Workers Party (PKK) in the early 1980s, and two other Kurdish women were found shot dead in Paris in January 2013.</p>
<p><img class="aligncenter size-full wp-image-7124" alt="Pro-Kurdish protesters attend a demonstration called European Demonstration March For Truth And Justice in Paris" src="http://www.reinform.nl/wp-content/uploads/2014/01/kurds1.jpeg" width="587" height="378" /></p>
<p>Carrying banners reading &#8220;Turkish state the murderer, <a title="Full coverage of France" href="http://uk.reuters.com/places/france" data-ls-seen="1">France</a> the accomplice&#8221;, demonstrators accused the Turkish state of being behind the murders and criticised the French judiciary for what they said was the slow pace of the investigation.</p>
<p>&#8220;Today it has been one year since the murder and we still have no answers to our all questions,&#8221; Rezan, a Kurdish student living in <a href="http://uk.reuters.com/places/france?lc=int_mb_1001" data-ls-seen="1">France</a>, told Reuters. She declined to give her family name.</p>
<p>Chief suspect Omer Guney, a Turkish immigrant in <a href="http://uk.reuters.com/places/france?lc=int_mb_1001" data-ls-seen="1">France</a>, was placed under formal investigation within about a week of the triple murder.</p>
<p><img class="aligncenter size-full wp-image-7125" alt="Pro-Kurdish protesters attend a demonstration called European Demonstration March For Truth And Justice in Paris" src="http://www.reinform.nl/wp-content/uploads/2014/01/kurds2.jpeg" width="620" height="378" /></p>
<p>Sources told Reuters in October that French investigators had collected evidence about Guney&#8217;s connections to <a title="Full coverage of Turkey" href="http://uk.reuters.com/places/turkey" data-ls-seen="1">Turkey</a>, and the magistrate in charge of the case was about to lodge a formal appeal for information to <a href="http://uk.reuters.com/places/turkey?lc=int_mb_1001" data-ls-seen="1">Turkey</a>.</p>
<p><a href="http://uk.reuters.com/places/turkey?lc=int_mb_1001" data-ls-seen="1">Turkey</a> has denied any involvement in the murders, suggesting instead they were related to internal disputes in the PKK.</p>
<p>The PKK is outlawed as a terrorist organisation by Turkey, the United States and the European Union.</p>
<p>&#8220;The investigation is not making progress, we want justice,&#8221; said Ali, another demonstrator in Paris, who also declined to give his family name.</p>
<p>(Reporting by Pauline Ades-Mevel; Writing by Geert De Clercq; Editing by Sophie Hares)</p>
<p>Source: http://uk.reuters.com/article/2014/01/11/uk-france-kurds-demonstration-idUKBREA0A0AZ20140111</p>
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		<title>French schoolchildren protest at migrant expulsions with Paris march</title>
		<link>http://www.reinform.info/?p=6669</link>
		<comments>http://www.reinform.info/?p=6669#comments</comments>
		<pubDate>Thu, 17 Oct 2013 15:28:58 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Society]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[immigration]]></category>
		<category><![CDATA[Racism]]></category>

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		<description><![CDATA[Hundreds of French teenagers have erected barricades outside their schools and marched through Paris to protest against the police expulsions of immigrant families – including some of their classmates. A few students clashed with police firing teargas but most marched peacefully, some climbing on bus shelters to shout demands for the interior minister&#8217;s resignation. Anger [...]]]></description>
				<content:encoded><![CDATA[<p>Hundreds of French teenagers have erected barricades outside their schools and marched through Paris to protest against the police expulsions of immigrant families – including some of their classmates.</p>
<p>A few students clashed with police firing teargas but most marched peacefully, some climbing on bus shelters to shout demands for the interior minister&#8217;s resignation.<span id="more-6669"></span></p>
<p>Anger erupted this week over the treatment of a 15-year-old Kosovar girl who was detained in front of classmates on a field trip. The government says eight of her family had been denied asylum and were no longer allowed to stay in France.</p>
<p><img class="aligncenter size-full wp-image-6670" alt="French high school students protest in Paris" src="http://www.reinform.nl/wp-content/uploads/2013/10/French-high-school-studen-009.jpg" width="460" height="276" /></p>
<p>Such expulsions occur regularly around France as the government tries to limit illegal immigration. But the treatment of the girl touched a nerve, with critics saying police went too far and betrayed France&#8217;s image as a champion of human rights.</p>
<p>The students, saying the expulsions are unfair to children, hope to pressure France&#8217;s Socialist-led government into allowing the girl and a recently expelled Armenian boy to return to France.</p>
<p>At one high school in Paris students piled green garbage cans in front of the entrance and hung a banner saying &#8220;Education in danger&#8221;.</p>
<p>&#8220;Everybody should have a chance. Everybody should have a job, work and have a family. When children try to achieve that, France refuses, and that is not my country,&#8221; said protester Romain Desprez.</p>
<p>The Kosovar girl, Leonarda Dibrani, told the Associated Press from the northern <a title="More from guardian.co.uk on Kosovo" href="http://www.theguardian.com/world/kosovo">Kosovo</a> city of Mitrovica that she wants to return to France. Activists say her Dibrani family fled Kosovo about five years ago because they are Roma and faced discrimination and few opportunities.</p>
<p>&#8220;My home is in France,&#8221; Dibrani said in French. &#8220;I don&#8217;t speak the language here [in Kosovo] and I don&#8217;t know anyone. I just want to go back to France and forget everything that happened.&#8221;</p>
<p>Source: <a href="http://www.theguardian.com/world/2013/oct/17/french-schoolchildren-protest-migrant-explusions-paris-kosovar">http://www.theguardian.com/world/2013/oct/17/french-schoolchildren-protest-migrant-explusions-paris-kosovar</a></p>
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		<title>Vive ERT,au nom de la liberté démocratique !</title>
		<link>http://www.reinform.info/?p=6102</link>
		<comments>http://www.reinform.info/?p=6102#comments</comments>
		<pubDate>Mon, 24 Jun 2013 23:14:51 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Belgium]]></category>
		<category><![CDATA[democracy]]></category>
		<category><![CDATA[ERT]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[Greece]]></category>
		<category><![CDATA[journalism]]></category>

		<guid isPermaLink="false">http://www.reinform.nl/?p=6102</guid>
		<description><![CDATA[La Grèce, berceau culturel de la civilisation occidentale, pays qui inventa l’admirable notion de &#8220;démocratie&#8221;, vit aujourd’hui &#8211; avec l’illégitime et brutale fermeture de sa radio-télévision publique (ERT) &#8211; une des périodes les plus sombres de son histoire moderne et contemporaine. Lettre ouverte Monsieur le Premier Ministre du Gouvernement Grec, Antonis Samaras, Les intellectuels et [...]]]></description>
				<content:encoded><![CDATA[<p>La Grèce, berceau culturel de la civilisation occidentale, pays qui inventa l’admirable notion de &#8220;démocratie&#8221;, vit aujourd’hui &#8211; avec l’illégitime et brutale fermeture de sa radio-télévision publique (ERT) &#8211; une des périodes les plus sombres de son histoire moderne et contemporaine.</p>
<p>Lettre ouverte</p>
<p>Monsieur le Premier Ministre du Gouvernement Grec, Antonis Samaras,</p>
<p>Les intellectuels et artistes d’Europe vous adressent cet appel solennel, au nom de la liberté démocratique, à la réouverture immédiate et inconditionnelle de la radio-télévision publique grecque, ERT.</p>
<p>La Grèce, berceau culturel de la civilisation occidentale, pays qui inventa l’admirable notion de &#8220;démocratie&#8221; et où naquit le mot même d’Europe, vit aujourd’hui &#8211; avec l’illégitime et brutale fermeture de sa radio-télévision publique (ERT) &#8211; une des périodes les plus sombres de son histoire moderne et contemporaine.</p>
<p><a href="http://www.reinform.nl/?attachment_id=6103" rel="attachment wp-att-6103"><img class="aligncenter size-full wp-image-6103" alt="51c86c0a35703374da31922f" src="http://www.reinform.nl/wp-content/uploads/2013/06/51c86c0a35703374da31922f.jpg" width="620" height="310" /></a></p>
<p>Le peuple grec, révolté par cette décision pour le moins arbitraire, aussi injuste qu’injustifiable, ne s’y est d’ailleurs pas trompé, lui qui se trouve désormais coupé, sans plus de connexion télévisuelle ni radiophonique, de sa diaspora : cet acte d’une rare violence politique, en tout point contraire aux principes mêmes de la démocratie, rappelle, de sinistre mémoire, la dictature, entre les années 1967 et 1974, des colonels.</p>
<p>Et encore : même celle-ci, cette junte militaire qui ne se souciait pourtant que fort peu du bien-être de ces concitoyens qu’elle commandait alors d’une impitoyable main de fer, n’osa pousser son autoritarisme jusque-là.</p>
<p>De cette très regrettable décision, aussi funeste dans son fond qu’intolérable dans sa forme, vous en êtes, Monsieur le Premier Ministre, le véritable responsable. Cet acte, qui ne vous honore guère, est la négation même &#8211; le paradoxe s’avère énorme, vous en conviendrez aisément &#8211; du beau nom que désigne votre parti : &#8220;Nouvelle Démocratie&#8221;, lequel, votre peuple n’ayant jamais été consulté sur cette question (pas plus d’ailleurs que vos alliés politiques), n’a jamais aussi mal porté son titre. Il relève même, en l’occurrence, d’une abusive et très malhonnête arnaque sémantique.</p>
<p>Pis : il équivaut à une trahison politique et linguistique tout à la fois, en totale opposition, y compris sur le plan moral, avec le sens profond du concept de &#8220;démocratie&#8221;, ce principe que les humanistes que nous sommes souhaiteraient universel.</p>
<p>Ainsi est-ce notre solidarité la plus sincère et totale que nous exprimons aujourd’hui au peuple grec, de plus en plus douloureusement malmené, à force d’absurdes et contre-productives politiques d’austérité ces temps-ci.</p>
<p>Vos très expéditives et sommaires méthodes, inacceptables à tous points de vue, ne font, en outre, qu’aggraver le problème plutôt que de le résoudre, au niveau social, dans la mesure où, en plus de ne point vous soucier de la volonté populaire, vous envoyez ainsi illégalement, sans préavis ni ménagement, près de trois mille personnes aussi désarmées qu’innocentes, lesquelles n’ont certes pas à payer pour les erreurs de leur hiérarchie professionnelle (que les gouvernements grecs du passé ont eux-mêmes contribué, suprême hypocrisie, à mettre à la tête de cette institution), au chômage.</p>
<p>Même votre Conseil d’Etat vous a désavoué, par décision de justice, en ordonnant la réouverture immédiate de cette radio-télévision que vous avez ainsi cru pouvoir impunément liquider.</p>
<p>Il est donc urgent, toutes affaires cessantes, que vous rouvriez définitivement, Monsieur le Premier Ministre, la radio-télévision publique grecque : celle-ci ne vous appartient pas, ni à vous ni à votre parti, pas plus, d’ailleurs, qu’au gouvernement que vous présidez, à l’évidence, si mal.</p>
<p>Elle est, comme son nom l’indique, un bien public, souverain, commun et inaliénable à la fois. Ne spoliez donc pas davantage encore, par cette inique et incompréhensible suppression d’une consistante partie de l’espace public, le peuple grec, que les divers représentants de votre caste nationale n’ont que trop volé déjà ! Et, surtout, ne bâillonnez pas ainsi l’intangible liberté d’expression, sans laquelle il n’est point de démocratie qui vaille ni de civilisation qui tienne !</p>
<p>Soyez donc digne, Monsieur le Premier Ministre, du glorieux passé de votre pays, la Grèce, et de ces grands hommes &#8211; de Homère à Aristote, en passant par Hérodote, Hésiode, Pythagore, Epicure, Socrate, Platon, Hippocrate, Sophocle ou Eschyle &#8211; qui ont fait son immortelle histoire, tant sur le plan philosophique que scientifique ou artistique : cette Histoire sans laquelle l’Europe elle-même, et donc l’Union européenne en tant que telle, n’existerait pas aujourd’hui. Vive ERT !<br />
Les signataires de cette lettre ouverte: Soisic Belin, journaliste, attachée de presse aux Editions Albin Michel (Paris). Hélène Bravin, essayiste, journaliste (Paris). Marc Bressant, écrivain, Grand Prix du Roman de l’Académie française. Jacques De Decker, écrivain, secrétaire perpétuel de l’Académie royale de Langue et de Littérature françaises de Belgique. Nadine Dewit, artiste-peintre, Académie royale des Beaux-Arts de Liège (Belgique). Marek Halter, écrivain (Paris). Jean Jauniaux, écrivain, chroniqueur littéraire (Bruxelles). Jean-Marie Klinkenberg, linguiste, membre de l’Académie royale de Belgique. Giorgio Marconi, fondateur du &#8220;Studio Marconi&#8221;, galerie d’art à Milan (Italie). Daniel Mesguich, comédien, directeur du Conservatoire national supérieur d’Art dramatique (Paris). Gilles Perrault, écrivain, journaliste (Paris). Michelle Perrot, historienne, professeur émérite des universités (Paris). Patrick Roegiers, écrivain (Paris). Daniel Salvatore Schiffer, philosophe, écrivain, éditorialiste (Paris-Bruxelles-Luxembourg). Annie Sugier, présidente de la Ligue du Droit international des Femmes, association créée par Simone de Beauvoir (Paris). Jeanie Toschi Marazzani Visconti, essayiste, journaliste, éditorialiste (Milan, Italie). Elisabeth Weissman, essayiste, journaliste (Paris).</p>
<p>Source: <a href="http://www.lalibre.be/debats/opinions/vive-ertau-nom-de-la-liberte-democratique-51c7bf3335703374da318ea4">http://www.lalibre.be/debats/opinions/vive-ertau-nom-de-la-liberte-democratique-51c7bf3335703374da318ea4</a></p>
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		<title>Young leftist activist brain dead after ‘politically motivated’ Paris skinhead attack</title>
		<link>http://www.reinform.info/?p=5954</link>
		<comments>http://www.reinform.info/?p=5954#comments</comments>
		<pubDate>Fri, 07 Jun 2013 06:27:55 +0000</pubDate>
		<dc:creator>disorderisti</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Society]]></category>
		<category><![CDATA[fascism]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[Nazis]]></category>
		<category><![CDATA[Paris]]></category>

		<guid isPermaLink="false">http://www.reinform.nl/?p=5954</guid>
		<description><![CDATA[A left-wing French activist has been rendered brain dead after being brutally assaulted by neo-Nazi skinheads. Police called the attack against the 19-year-old ‘politically motivated.’ Police described the attack against left-wing anti-fascist activist Clément Méric as “politically motivated incident involving the far-right versus the far-left,” with witnesses saying angry words were exchanged between he and [...]]]></description>
				<content:encoded><![CDATA[<p><a href="http://www.reinform.nl/?attachment_id=5955" rel="attachment wp-att-5955"><img class="size-full wp-image-5955 aligncenter" alt="130902-kentriki" src="http://www.reinform.nl/wp-content/uploads/2013/06/130902-kentriki.jpg" width="535" height="300" /></a></p>
<p>A left-wing French activist has been rendered brain dead after being brutally assaulted by neo-Nazi skinheads. Police called the attack against the <strong>19-year-old</strong> ‘politically motivated.’</p>
<p>Police described the attack against left-wing anti-fascist activist Clément Méric as <strong><i>“politically motivated incident involving the far-right versus the far-left,”</i> </strong>with witnesses saying angry words were exchanged between he and <strong><i>“skinhead type individuals,”</i></strong> according to AFP.</p>
<p>Nineteen-year-old Meric, a student at Sciences Po, one of France&#8217;s most prestigious universities, suffered multiple blows from the assailants. One of them was reportedly wearing brass knuckles.</p>
<p>Four suspects, aged 20 to 37, were arrested, Paris prosecutor&#8217;s office spokeswoman Agnes Thibault-Lecuivre said.</p>
<p>It remains unclear how many people were involved in the attack or how the fight developed.</p>
<p>Méric was reportedly visiting a clothes sale with friends late Wednesday when they got into a confrontation with three individuals. They left to gather a larger group of people, and attacked Méric as he left the building, knocking him to the floor. In addition to injuries sustained from the assailants’ blows, he also hit his head on the pavement.</p>
<p>The deadly blow is believed to have been delivered by a 21-year-old with links to Paris-based neo-Nazi organization JNR (Young Revolutionary Nationalists), AFP reports citing police sources.</p>
<p>He was declared brain dead in one of the capital’s hospitals later on Wednesday night.</p>
<p>Social media exploded in fury at the attack, with some saying <i>“Clement was murdered by thugs,”</i> and others deriding racist right-wing propaganda, pitting the far-right and far-left directly against one another.</p>
<p>Politicians from left and right lashed out at the violence.</p>
<p><i>&#8220;There is no place for small neo-Nazi groups whose enemy is the nation,&#8221;</i> Interior minister Manuel Valls said. <i>&#8220;A group of the extreme right is at the heart of this &#8230; There is a discourse of hate and a climate that favors this discourse. We need to pay attention to this, because they threaten our values.&#8221;</i></p>
<p>Paris-based neo-Nazi organization JNR (Young Revolutionary Nationalists) were blamed for the incident by a collection of far-left French parties known as the ‘Parti de Gauche,’ in a statement released shortly afterwards. <i>“The horrors of fascism have brought murder to Paris,”</i> the statement read.</p>
<p>The JNR has been active for more than 30 years, and is infamous for committing similarly violent attacks since its founding. Left-wing groups have demanded that the JNR be banned if a direct link to this recent assault is proven.</p>
<p>The 48-year-old founder and head of the JNR, Serge Ayoub, told reporters on Thursday that the  allegations were false, and that the beating was likely instigated by left-wingers.</p>
<p>French President François Hollande’s office issued an official statement in the wake of the attack, condemning the perpetrators and revealing that police were under <i>“firm instructions to ensure that the perpetrators of this odious act are arrested as soon as possible.”</i></p>
<p><i>&#8220;For too long these groups have created disorder and have to be repressed,&#8221;</i> Hollande said.</p>
<p>An anti-fascist vigil being held at the London mosque which suffered an arson attack on Wednesday has said they will keep him in their thoughts. Also hundreds of students came to Sciences Po University to pay tribute to Meric.</p>
<p>The Party of the Left has called for demonstrations in Paris to protest against violence by groups on the extreme right.</p>
<p><a href="http://rt.com/news/brain-dead-activist-paris-316/" target="_blank"></p>
<blockquote><p>&nbsp;</p>
<p><strong>http://rt.com/news/brain-dead-activist-paris-316/</strong></p></blockquote>
<p></a></p>
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		<title>Why we are striking against austerity in Europe</title>
		<link>http://www.reinform.info/?p=3672</link>
		<comments>http://www.reinform.info/?p=3672#comments</comments>
		<pubDate>Wed, 14 Nov 2012 11:30:35 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[Articles]]></category>
		<category><![CDATA[Movement]]></category>
		<category><![CDATA[austerity]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[Greece]]></category>
		<category><![CDATA[Portugal]]></category>
		<category><![CDATA[Spain]]></category>
		<category><![CDATA[Strike]]></category>

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		<description><![CDATA[Spain: Fernando Lezcano: &#8217;The sacrifice is not being shared&#8217; &#160; The European Trade Union Confederation has called a day of action and solidarity throughout Europe on 14 November to fight against the austerity policies being deployed throughout Europe. This day of action will mean a general strike in this country, which, for the first time in recent history, will also [...]]]></description>
				<content:encoded><![CDATA[<h2><strong>Spain: Fernando Lezcano:</strong> &#8217;The sacrifice is not being shared&#8217;</h2>
<p>&nbsp;</p>
<p>The <a title="" href="http://www.europolitics.info/social/european-day-of-action-on-14-november-art345028-24.html">European Trade Union Confederation </a>has called a <a href="http://www.guardian.co.uk/business/2012/nov/14/eurozone-crisis-general-strikes-protest-day-of-action">day of action and solidarity</a> throughout Europe on 14 November to fight against the austerity policies being deployed throughout Europe. This day of action will mean a general strike in this country, which, for the first time in recent history, will also be simultaneously held in other European countries.</p>
<p><span id="more-3672"></span></p>
<p>In Spain, the recession is taking an incredible toll on the population. We have an intolerably high unemployment rate (more than 25%), the welfare state has been rapidly dismantled and public services and labour relations are deteriorating.</p>
<p>With this strike we want to change European policies, which only pay attention to the voices of the powerful. We also want to fight against employment reforms and a policy of dogmatic deficit reduction, which has brought us close to having 6 million unemployed.</p>
<p><a href="http://www.reinform.nl/why-we-are-striking-against-austerity-in-europe/c51076a4-4c62-44a6-80da-21a5bdc008da-460/" rel="attachment wp-att-3673"><img class="aligncenter size-full wp-image-3673" title="c51076a4-4c62-44a6-80da-21a5bdc008da-460" alt="" src="http://www.matiastanea.gr:8888/wp-content/uploads/2012/11/c51076a4-4c62-44a6-80da-21a5bdc008da-460.jpeg" width="460" height="276" /></a></p>
<p>Unemployment benefits are being cut. The unemployment rate among young people in Spain is over 50%, condemning our youth to social exclusion or emigration. The education cuts pushed through by the government are depriving many of any possibility of accessing higher education and force a classist, sexist and conservative education on them. The cuts in the health budget and the introduction of prescription charges mean that the most disadvantaged could be left outside the national health system, and the lack of budget provision for the<a title="" href="http://www.eurofound.europa.eu/areas/labourmarket/tackling/cases/es001.htm">dependent care law </a>leaves thousands of people without appropriate care. As a result, thousands of families are pushed towards social exclusion.</p>
<p>The government&#8217;s path is not the way to emerge from the crisis. The sacrifice is not being shared by the whole of society: the economic and financial elites are spared and some even benefit from it, protected by the government. Politicians are shamelessly defrauding the democratic process. This is why we will be striking.</p>
<p>• Fernando Lezcano is communications secretary and spokesman for the <a title="" href="http://www.ccoo.es/csccoo/menu.do">CCOO</a> (Workers&#8217; Commissions)</p>
<h2><strong>Portugal: Armando Farias: </strong>&#8216;We convey our solidarity&#8217;</h2>
<p>&nbsp;</p>
<p>Unemployment in Portugal already affects 1.4 million workers in a country of 10.5 million. We have some of the worst working conditions in Europe, and the cost of living is still going up while wages come down. Around 500,000 workers earn the national minimum salary (€432 a month after tax). More than 1 million pensioners survive on misery pensions (€200 to €300 per month). This general strike is occurring during a violent capitalist offensive, and for this reason it has very high political significance. Our aims are to stop recessionary policies, to demand the renegotiation of the debt, to defend national sovereignty, to defeat rightwing policies and to adopt a programme of development for our country.</p>
<p>Our strike motto is simple: &#8220;Against exploitation and impoverishment&#8221;. We are fighting the measures contained in Portugal&#8217;s 2013 draft state budget, and we are working against brutal tax increases that will mean cuts to income, both salaries and pensions. We also oppose the cuts in unemployment benefits, in sickness pay and other welfare benefits. As is the case elsewhere in Europe, we&#8217;re against the destruction of the welfare state and the overwhelming destruction of jobs in public administration, which brings with it the dismantling, degradation and higher cost of public services.</p>
<p>With this in mind, we convey our solidarity with all of the European workers who will participate in this day of action.</p>
<p>• Armando Farias is head of the commission executive of the <a href="http://en.wikipedia.org/wiki/General_Confederation_of_the_Portuguese_Workers">CGTP-IN</a>(General Confederation of Portuguese Workers)</p>
<h2><strong>France: Bernard Thibault:</strong> &#8217;End this downward spiral&#8217;</h2>
<p>&nbsp;</p>
<p>Today in France, more than 100 protests will take place across the country, following the call of five French unions.</p>
<p>Every day in Europe, austerity policies show their devastating effects and prevent any chance of recovery. By choosing austerity against solidarity, European governments, under pressure from the troika, are dealing a serious blow to the social ideal that should animate Europe.</p>
<p>The shock treatments inflicted on workers – particularly in Greece, Spain and Portugal – demonstrate the political impasse leading to the destruction of social rights, which undermines democracy while maintaining despair. It is a crisis that is fuelling racism, xenophobia, and the temptation to move towards isolationism.</p>
<p>Europe, as the former director general of the International Labour Office (ILO) said in June, is following a path contrary to social progress: &#8220;European countries the most affected by the crisis are diverting from the core values of the ILO … We seek to reduce public debt, but the social debt accumulates, and it will also need to be paid.&#8221; The European Union is now an area of competition between employees and public services, which are under an increased financial strain. It is time we strongly showed our desire for another Europe, one of social progress and solidarity.</p>
<p>Throughout Europe, unions are opposing austerity measures that are sinking the continent. European workers are engaged in one common struggle: to pull Europe out of this downward spiral. Today&#8217;s events will allow workers across Europe to act together to express their opposition to austerity and social regression, to demand better working and living conditions, and to advocate for the effective co-ordination of economic and social policies to help those who are most in need. We are calling for a new social contract and stimulus measures at European level, supporting both employment and industry.</p>
<p>• Bernard Thibault is general secretary of the <a href="http://en.wikipedia.org/wiki/General_Confederation_of_Labour_%28France%29">CGT</a> (General Confederation of Labour)</p>
<h2><strong>Greece: Tania Karayiannis: </strong>&#8216;This is our only hope&#8217;</h2>
<p>&nbsp;</p>
<p>The constant deterioration of the economic crisis in Europe, especially in south Europe and Greece, has stirred a wave of reactions across the continent. The wisdom of the central political options laid out by the EU, and its persistence in implementing austerity policies that extend social disparities, are the most challenged issues. Governments are now confronted by their own citizens.</p>
<p>In this context, the policy pursued in Greece over the past few years, on the pretext of saving the country from the risk of huge public debt and bankruptcy, is socially unfair and has clear ideological features. It is expressed through the following policies: a continuous wage and pension cut, attacks on labour, social security and social rights, the heavy taxation on private property and the threat of further dramatic public services restrictions.</p>
<p>Such extreme neoliberal policies limit the rights of all workers and vulnerable social groups, in favour of bankers and lenders. They are leading our people to poverty and misery. It is obvious that the solution lies in implementing policies promoting social justice, which would overthrow the doctrine of &#8220;competitiveness&#8221;. There is no doubt that Europe needs a new orientation and implementation of policies that lead to stabilisation, development, progress and prosperity.</p>
<p>The common and co-ordinated struggle of the trade unions in all European countries is necessary today more than ever. This is our only hope for exiting the crisis.</p>
<p>• Tania Karayiannis is international officer and member of the executive committee of <a href="http://en.wikipedia.org/wiki/Civil_Servants%27_Confederation">Adedy</a>, the union of civil servant employees</p>
<h2><strong>UK: Ben Rocker:</strong> &#8217;This isn&#8217;t a token action&#8217;</h2>
<p>The <a title="" href="http://csrfnetwork.wordpress.com/">Civil Service Rank and File Network</a> called for action on 14 November to coincide with the European general strikes. But we also did it around very specific issues that workers here are getting angry about.</p>
<p>We&#8217;re about to lose any semblance of decent working conditions. The government has subjected low-paid civil servants to a two-year pay freeze while increasing workers&#8217; pension contributions. Workers have less money and struggle to make ends meet. After losing on pensions through holding just three single days of strike action in almost two years of the dispute, the initial response from the Public and Commercial Services union was inadequate. As a result, a growing group from different offices started talking about pushing for action. I was inspired by what construction workers did last year: not only forcing Unite to call a<a title="" href="http://www.theconstructionindex.co.uk/news/view/striking-construction-workers-to-besiege-london-on-9-november">strike</a> over pay cuts and de-skilling, but also building up a momentum that beat seven big employers. It underlined that, if there was a possibility of winning this dispute, it would be thanks to us workers.</p>
<p>My hope is that 14 November is just the start. We&#8217;ve already been able to embarrass the union into calling protests on 30 November, now we need to rattle the Cabinet Office. This isn&#8217;t a token action. We&#8217;ve been pushed too far, and we&#8217;re fighting to win.</p>
<p>• Ben Rocker is a member of the <a title="" href="http://www.pcs.org.uk/">Public and Commercial Services</a> union and of the <a title="" href="http://csrfnetwork.wordpress.com/">Civil Service Rank and File Network</a></p>
<p>Source: <a href="http://www.guardian.co.uk/commentisfree/2012/nov/14/why-we-striking-against-austerity-europe">http://www.guardian.co.uk/commentisfree/2012/nov/14/why-we-striking-against-austerity-europe</a></p>
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		<title>The root of Europe&#8217;s riots</title>
		<link>http://www.reinform.info/?p=3304</link>
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		<pubDate>Sat, 29 Sep 2012 11:38:00 +0000</pubDate>
		<dc:creator>disorderisti</dc:creator>
				<category><![CDATA[Articles]]></category>
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		<description><![CDATA[No wonder the protesters are back. They are angry at the backdoor rewriting of the social contract Ha-Joon Chang &#160; Rioters beat a policeman during a rally against government austerity measures in Athens. Photograph: John Kolesidis/REUTERS Throughout the 1980s and 90s, when many developing countries were in crisis and borrowing money from the International Monetary [...]]]></description>
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<p><em><strong>No wonder the protesters are back. They are angry at the backdoor rewriting of the social contract</strong></em></p>
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<div><a href="http://www.guardian.co.uk/profile/hajoonchang" rel="author">Ha-Joon Chang</a></div>
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<p>&nbsp;</p>
<p style="text-align: center;"><a href="http://www.matiastanea.gr:8888/wp-content/uploads/2012/09/Greek-rioters-beat-police-008.jpg"><img class="aligncenter  wp-image-3305" title="Greek rioters beat policeman" alt="" src="http://www.matiastanea.gr:8888/wp-content/uploads/2012/09/Greek-rioters-beat-police-008-300x180.jpg" width="450" height="300" /></a>Rioters beat a policeman during a rally against government austerity measures in Athens. Photograph: John Kolesidis/REUTERS</p>
<p>Throughout the 1980s and 90s, when many developing countries were in crisis and borrowing money from the <a title="" href="http://www.guardian.co.uk/business/imf">International Monetary Fund</a>, waves of protests in those countries became known as the &#8220;IMF riots&#8221;. They were so called because they were sparked by the fund&#8217;s structural adjustment programmes, which imposed austerity, privatisation and deregulation.</p>
<p>The IMF complained that calling these riots thus was unfair, as it had not caused the crises and was only prescribing a medicine, but this was largely self-serving. Many of the crises had actually been caused by the asset bubbles built up following IMF-recommended financial deregulation. Moreover, those rioters were not just expressing general discontent but reacting against the austerity measures that directly threatened their livelihoods, such as cuts in subsidies to basic commodities such as food and water, and cuts in already meagre welfare payments.</p>
<p>The IMF programme, in other words, met such resistance because its designers had forgotten that behind the numbers they were crunching were real people. These criticisms, as well as the ineffectiveness of its economic programme, became so damaging that the IMF has made a lot of changes in the past decade or so. It has become more cautious in pushing for financial deregulation and austerity programmes, renamed its structural adjustment programmes as poverty reduction programmes, and has even (marginally) increased the voting shares of the developing countries in its decision-making.</p>
<p>Given these recent changes in the IMF, it is ironic to see the <a title="" href="http://www.guardian.co.uk/business/economics-blog/2012/sep/28/blame-austerity-mania-breaks-euro">European governments inflicting an old-IMF-style programme</a> on their own populations. It is one thing to tell the citizens of some faraway country to go to hell but it is another to do the same to your own citizens, who are supposedly your ultimate sovereigns. Indeed, the European governments are out-IMF-ing the IMF in its austerity drive so much that now the fund itself frequently issues the warning that Europe is going too far, too fast.</p>
<p>The threat to livelihoods has reached such a dimension that <a title="" href="http://www.guardian.co.uk/commentisfree/2012/sep/26/europe-austerity-protests-mad-hell">renewed bouts of rioting</a> are now rocking <a title="" href="http://www.guardian.co.uk/world/video/2012/sep/26/greece-general-strike-austerity-video?newsfeed=true">Greece</a>, <a title="" href="http://www.guardian.co.uk/commentisfree/2012/sep/26/spain-europe-news">Spain</a> and even the usually quieter <a title="" href="http://www.guardian.co.uk/world/2012/sep/28/portugal-austerity-mannered-populace?newsfeed=true">Portugal</a>. In the case of Spain, its national integrity is threatened by the separatist demand made by the <a title="" href="http://www.guardian.co.uk/world/2012/sep/27/spain-heads-towards-confrontation-catalan?newsfeed=true">Catalan</a> nationalists, who think the austerity policy is unfairly reducing the region&#8217;s autonomy.</p>
<p>Even if these and other European countries (for other countries have not been free of protests against austerity programmes, such as Britain&#8217;s university fees riot and the protests by Italy&#8217;s &#8220;recession widows&#8221;) survive this social unrest through a mixture of heavy-handed policing and political delaying tactics, recent events raise a very serious question about the nature of European politics.</p>
<p>What has been happening in Europe – and indeed the US in a more muted and dispersed form – is nothing short of a complete rewriting of the implicit social contracts that have existed since the end of the second world war. In these contracts, renewed legitimacy was bestowed on the capitalist system, once totally discredited following the great depression. In return it provided a welfare state that guarantees minimum provision for all those burdens that most citizens have to contend with throughout their lives – childcare, education, health, unemployment, disability and old age.</p>
<p>Of course there is nothing sacrosanct about any of the details of these social contracts. Indeed, the contracts have been modified on the margins all the time. However, the rewriting in many European countries is an unprecedented one. It is not simply that the scope and the speed of the cuts are unusually large. It is more that the rewriting is being done through the back door.</p>
<p>Instead of it being explicitly cast as a rewriting of the social contract, changing people&#8217;s entitlements and changing the way the society establishes its legitimacy, the dismembering of the welfare state is presented as a technocratic exercise of &#8220;balancing the books&#8221;. Democracy is neutered in the process and the protests against the cuts are dismissed. The description of the externally imposed Greek and Italian governments as &#8220;technocratic&#8221; is the ultimate proof of the attempt to make the radical rewriting of the social contract more acceptable by pretending that it isn&#8217;t really a political change.</p>
<p>The danger is not only that these austerity measures are killing the European economies but also that they threaten the very legitimacy of European democracies – not just directly by threatening the livelihoods of so many people and pushing the economy into a downward spiral, but also indirectly by undermining the legitimacy of the political system through this backdoor rewriting of the social contract. Especially if they are going to have to go through long tunnels of economic difficulties in coming years, and in the context of global shifts in economic power balance and of severe environmental challenges, European countries can ill afford to have the legitimacy of their political systems damaged in this way.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<blockquote><p><a title="http://www.guardian.co.uk/commentisfree/2012/sep/28/europe-riots-root-imf-austerity?CMP=twt_gu" href="http://www.guardian.co.uk/commentisfree/2012/sep/28/europe-riots-root-imf-austerity?CMP=twt_gu" target="_blank"><strong>http://www.guardian.co.uk/commentisfree/2012/sep/28/europe-riots-root-imf-austerity?CMP=twt_gu</strong></a></p></blockquote>
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		<title>European elections: if the left doesn&#039;t lead revolt against austerity, others will</title>
		<link>http://www.reinform.info/?p=2636</link>
		<comments>http://www.reinform.info/?p=2636#comments</comments>
		<pubDate>Thu, 17 May 2012 10:12:04 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[Articles]]></category>
		<category><![CDATA[Politics]]></category>
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		<description><![CDATA[The French and Greek elections have already shifted Europe&#8217;s politics. But it needs real change to hold the right at bay. Revolt against austerity is sweeping Europe. The election of François Hollande has not only opened up the chance of a change of direction in France, but even in the citadels of fiscal orthodoxy in [...]]]></description>
				<content:encoded><![CDATA[<p>The French and Greek elections have already shifted Europe&#8217;s politics. But it needs real change to hold the right at bay.</p>
<p>Revolt against austerity is sweeping Europe. The election of François Hollande has not only opened up the chance of a change of direction in France, but even in the citadels of fiscal orthodoxy in Brussels, Frankfurt and Berlin. In Greece, <a title="" href="http://www.guardian.co.uk/world/greece">Sunday&#8217;s electoral earthquake</a> has all but destroyed the political establishment that dominated the country for 40 years.</p>
<p>From <a title="" href="http://www.guardian.co.uk/business/2012/apr/23/eurozone-crisis-austerity-dutch-government">the Netherlands</a> to <a title="" href="http://www.guardian.co.uk/world/2012/feb/06/romania-pm-cabinet-resign">Romania</a>, governments are falling under the weight of cuts and tax rises required by the eurozone&#8217;s new permanent deflation treaty. In Ireland, the anti-austerity tide is swelling support for a no vote in this month&#8217;s treaty referendum.</p>
<p><a href="http://www.matiastanea.gr:8888/wp-content/uploads/2012/05/Syriza-leader-Alexis-Tsip-008.jpg"><img class="aligncenter size-full wp-image-2637" title="Syriza leader Alexis Tsipras leaving the presidential palace" src="http://www.matiastanea.gr:8888/wp-content/uploads/2012/05/Syriza-leader-Alexis-Tsip-008.jpg" alt="" width="460" height="276" /></a></p>
<p>By <a title="" href="http://www.guardian.co.uk/world/angela-merkel">rejecting renegotiation of either the treaty or the impossible terms of Greece&#8217;s bailout</a>, Angela Merkel has meanwhile turned the struggle over Europe&#8217;s economy into a battle for democracy. The <a title="" href="http://www.guardian.co.uk/business/2012/may/08/eurozone-crisis-greece-elections-bailout">Greeks</a> and French have now unequivocally voted to reject a programme the German chancellor insists they will have to swallow regardless.</p>
<p>And it&#8217;s not difficult to see why they&#8217;re rejecting it. Austerity isn&#8217;t working, even in its own terms. Cutting jobs and pay while increasing taxes isn&#8217;t reducing borrowing and debt, let alone leading to economic recovery. It&#8217;s deepening recession, increasing debt and destroying jobs and squeezing living standards across the eurozone – in countries such as Spain and Greece, catastrophically – as well as in Britain.</p>
<p>David Cameron and Nick Clegg today took the opportunity of their defeat in last week&#8217;s local elections to insist there could be no &#8220;let-up&#8221; in their own austerity programme. That comes less than a fortnight after the country officially sank into a double-dip recession as cuts shrank the construction sector.</p>
<p>Of course they also insisted they would &#8220;go for growth&#8221;. But as voters across Europe are about to discover, growth policies come in all shapes and sizes, from deregulation to public investment, and the inclusion of plans to make it easier to sack workers in tomorrow&#8217;s Queen&#8217;s speech makes quite clear which kind Cameron and Clegg have in mind.</p>
<p>But the victory of Hollande, on a platform of jobs, investment, higher taxes on the rich and renegotiation of the eurozone fiscal pact, has already changed the political dynamic across Europe and weakened the German-led axis of austerity. Even the international finance mandarins are shifting ground: European Central Bank president <a title="" href="http://www.bbc.co.uk/news/business-17935664">Mario Draghi now talks about a &#8220;growth compact</a>&#8220;, while IMF boss Christine Lagarde has just discovered that &#8220;<a title="" href="http://www.reuters.com/article/2012/05/07/imf-lagarde-idUSL1E8G7H3720120507">fiscal austerity holds back growth and the effects are worse in downturns</a>&#8220;.</p>
<p>The political upheaval in Greece, however, could have still more far-reaching consequences. Greece&#8217;s economic collapse, triggered by the crash of 2008 and deepened by EU and IMF-enforced austerity, is a social disaster on the level of the US depression of the 1930s. Real wages have fallen by 25% in two years, <a title="" href="http://online.wsj.com/article/SB40001424052702304811304577366202177079044.html">according to the OECD</a>.</p>
<p>It&#8217;s hardly surprising that support for the governing parties which brought Greece to such a pass fell from 80% to 30%, while leftwing parties that reject the EU-IMF cuts, privatisations and unachievable debt repayments surged ahead of both the discredited establishment and the nationalist right.</p>
<p>While international attention has focused on the fascist <a title="" href="http://www.guardian.co.uk/world/2012/may/07/neo-nazi-golden-dawn-party-greece">Golden Dawn</a> party&#8217;s 7% vote, by far the biggest beneficiary of Sunday&#8217;s election was the radical left Syriza coalition, which won 17%. Its leader Alexis Tsipras has been holding talks on the unlikely prospect of forming a government without new elections.</p>
<p>For the past four years, the crisis has culled incumbents without discrimination, from the Republican George Bush and conservative Nicolas Sarkozy to Labour&#8217;s Gordon Brown and the Spanish Socialist <a title="" href="http://www.guardian.co.uk/world/jose-luis-zapatero">José Luis Zapatero</a>, while the far right has advanced across Europe by preying on anti-migrant insecurities and posing as anti-establishment outsiders.</p>
<p>It is now being challenged by parties of the left that reject a failing neoliberal system and are retaking social territory which should never have abandoned. Marine Le Pen&#8217;s National Front outpolled Jean-Luc Mélenchon&#8217;s Left Front in France&#8217;s presidential elections. But it&#8217;s not Geert Wilders&#8217; Islamophobic Freedom party that has gained most from the collapse of the pro-austerity Dutch government, it&#8217;s the radical Socialist party, <a title="" href="http://www.reuters.com/article/2012/04/22/us-dutch-politics-poll-idUSBRE83L02M20120422">now coming first or second in opinion polls</a> with up to 20% support.</p>
<p>As the cost of the establishment&#8217;s austerity deepens, the polarisation between left and right is portrayed in much of the media as the rise of &#8220;extremes&#8221;. But it&#8217;s both absurd and repugnant to equate racist or xenophobic nationalists, which have kept supposedly centrist governments in power from Denmark to Italy, with leftist parties rooted in social movements that stand for a progressive political and economic alternative.</p>
<p>Nor is there anything &#8220;extreme&#8221; about an organisation such as Syriza that rejects a programme of social and economic destruction which is in every sense extreme – and calls for negotiation. Mainstream political choices and debates have become so narrow over the years of pro-market consensus that the reappearance of genuine alternatives is apparently too shocking to absorb.</p>
<p>The expectation is now that Merkel will block attempts by Hollande to renegotiate Europe&#8217;s austerity treaty, but instead agree to add a vaguely worded growth pact (as happened in the runup to the creation of the euro in the 90s) that would allow extra European Investment Bank lending and infrastructure projects.</p>
<p>If the French Socialist president were then to drive through the kind of cuts implied by his plans to balance the budget by 2017, in a context of continuing eurozone crisis and slump, the risk of fuelling a resurgent and toxic right on the back of social disillusionment is obvious. Either in that case – or of a clash with the financial markets – only a powerful social movement could provide the necessary counterweight.</p>
<p>The future of the eurozone now depends on what happens in Greece, and the risk of market contagion. Some on the Greek left hope to strengthen their bargaining hand with the EU and IMF in new elections. Others are sceptical, as the likelihood of default and exit from the euro looms ever larger.</p>
<p>Greece is a harsh case, where the political battle is now on between radical options of diametrically opposed kinds. But people across Europe are profoundly disillusioned with a market-driven order that has failed to deliver. If the left doesn&#8217;t offer a real alternative, others certainly will – with ugly consequences.</p>
<p><em></em>Source: <a href="http://www.guardian.co.uk/commentisfree/2012/may/08/left-revolt-austerity-far-right">http://www.guardian.co.uk/commentisfree/2012/may/08/left-revolt-austerity-far-right</a></p>
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		<title>Paul Krugman: Those Revolting Europeans</title>
		<link>http://www.reinform.info/?p=2564</link>
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		<pubDate>Tue, 08 May 2012 21:04:35 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
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		<description><![CDATA[The French are revolting. The Greeks, too. And it’s about time. Both countries held elections Sunday that were in effect referendums on the current European economic strategy, and in both countries voters turned two thumbs down. It’s far from clear how soon the votes will lead to changes in actual policy, but time is clearly [...]]]></description>
				<content:encoded><![CDATA[<p>The French are revolting. The Greeks, too. And it’s about time.</p>
<p>Both countries held elections Sunday that were in effect referendums on the current European economic strategy, and in both countries voters turned two thumbs down. It’s far from clear how soon the votes will lead to changes in actual policy, but time is clearly running out for the strategy of recovery through austerity — and that’s a good thing.</p>
<p>Needless to say, that’s not what you heard from the usual suspects in the run-up to the elections. It was actually kind of funny to see the apostles of orthodoxy trying to portray the cautious, mild-mannered <a title="More articles about Fran ois Hollande." href="http://topics.nytimes.com/top/reference/timestopics/people/h/francois_hollande/index.html?inline=nyt-per">François Hollande</a> as a figure of menace. He is “rather dangerous,” declared The Economist, which observed that he “genuinely believes in the need to create a fairer society.” Quelle horreur!</p>
<p>What is true is that Mr. Hollande’s victory means the end of “Merkozy,” the Franco-German axis that has enforced the austerity regime of the past two years. This would be a “dangerous” development if that strategy were working, or even had a reasonable chance of working. But it isn’t and doesn’t; it’s time to move on. Europe’s voters, it turns out, are wiser than the Continent’s best and brightest.</p>
<p>What’s wrong with the prescription of spending cuts as the remedy for Europe’s ills? One answer is that the confidence fairy doesn’t exist — that is, claims that slashing government spending would somehow encourage consumers and businesses to spend more have been overwhelmingly refuted by the experience of the past two years. So spending cuts in a depressed economy just make the depression deeper.</p>
<p>Moreover, there seems to be little if any gain in return for the pain. Consider the case of <a title="More news and information about Ireland." href="http://topics.nytimes.com/top/news/international/countriesandterritories/ireland/index.html?inline=nyt-geo">Ireland</a>, which has been a good soldier in this crisis, imposing ever-harsher austerity in an attempt to win back the favor of the bond markets. According to the prevailing orthodoxy, this should work. In fact, the will to believe is so strong that members of Europe’s policy elite keep proclaiming that Irish austerity has indeed worked, that the Irish economy has begun to recover.</p>
<p>But it hasn’t. And although you’d never know it from much of the press coverage, Irish borrowing costs remain much higher than those of Spain or Italy, let alone <a title="More news and information about Germany." href="http://topics.nytimes.com/top/news/international/countriesandterritories/germany/index.html?inline=nyt-geo">Germany</a>. So what are the alternatives?</p>
<p>One answer — an answer that makes more sense than almost anyone in Europe is willing to admit — would be to break up <a title="More articles about the Euro." href="http://topics.nytimes.com/top/reference/timestopics/subjects/c/currency/euro/index.html?inline=nyt-classifier">the euro</a>, Europe’s common currency. Europe wouldn’t be in this fix if <a title="More news and information about Greece." href="http://topics.nytimes.com/top/news/international/countriesandterritories/greece/index.html?inline=nyt-geo">Greece</a> still had its drachma, Spain its peseta, Ireland its punt, and so on, because Greece and Spain would have what they now lack: a quick way to restore cost-competitiveness and boost exports, namely devaluation.</p>
<p>As a counterpoint to Ireland’s sad story, consider the case of Iceland, which was ground zero for the financial crisis but was able to respond by devaluing its currency, the krona (and also had the courage to let its banks fail and default on their debts). Sure enough, Iceland is experiencing the recovery Ireland was supposed to have, but hasn’t.</p>
<p>Yet breaking up the euro would be highly disruptive, and would also represent a huge defeat for the “European project,” the long-run effort to promote peace and democracy through closer integration. Is there another way? Yes, there is — and the Germans have shown how that way can work. Unfortunately, they don’t understand the lessons of their own experience.</p>
<p>Talk to German opinion leaders about the euro crisis, and they like to point out that their own economy was in the doldrums in the early years of the last decade but managed to recover. What they don’t like to acknowledge is that this recovery was driven by the emergence of a huge German trade surplus vis-à-vis other European countries — in particular, vis-à-vis the nations now in crisis — which were booming, and experiencing above-normal inflation, thanks to low interest rates. Europe’s crisis countries might be able to emulate Germany’s success if they faced a comparably favorable environment — that is, if this time it was the rest of Europe, especially Germany, that was experiencing a bit of an inflationary boom.</p>
<p>So Germany’s experience isn’t, as the Germans imagine, an argument for unilateral austerity in Southern Europe; it’s an argument for much more expansionary policies elsewhere, and in particular for the European Central Bank to drop its obsession with inflation and focus on growth.</p>
<p>The Germans, needless to say, don’t like this conclusion, nor does the leadership of the central bank. They will cling to their fantasies of prosperity through pain, and will insist that continuing with their failed strategy is the only responsible thing to do. But it seems that they will no longer have unquestioning support from the Élysée Palace. And that, believe it or not, means that both the euro and the European project now have a better chance of surviving than they did a few days ago.</p>
<p>Source: <a href="http://www.nytimes.com/2012/05/07/opinion/krugman-those-revolting-europeans.html">http://www.nytimes.com/2012/05/07/opinion/krugman-those-revolting-europeans.html</a></p>
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		<title>Sacking Sarkozy won’t be enough</title>
		<link>http://www.reinform.info/?p=2512</link>
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		<pubDate>Sat, 21 Apr 2012 10:00:28 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[Articles]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Elections]]></category>
		<category><![CDATA[France]]></category>
		<category><![CDATA[Le Monde]]></category>

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		<description><![CDATA[The new French president will have to make a decision about a European treaty that would demand still greater austerity. The choice will affect the future of France, and of Europe. Will the French elect a different president, but leave unresolved all the issues raised in the election of 2007? The French would welcome a [...]]]></description>
				<content:encoded><![CDATA[<p>The new French president will have to make a decision about a European treaty that would demand still greater austerity. The choice will affect the future of France, and of Europe.</p>
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<p>Will the French elect a different president, but leave unresolved all the issues raised in the election of 2007? The French would welcome a change of government: because, apart from President Sarkozy’s egregious shortcomings — his ubiquity, his exhibitionism, his endless capacity to contradict himself, his fascination with the rich, and his tendency to blame all shortcomings on the unemployed, immigrants, Muslims and civil servants — there has been a decline in democracy and the sovereign power of the people during his presidency.</p>
<p><a href="http://www.matiastanea.gr:8888/wp-content/uploads/2012/04/0229-sarkozy-french-election-suddenly-everywhere_full_600.jpg"><img class="aligncenter size-full wp-image-2513" title="0229-sarkozy-french-election-suddenly-everywhere_full_600" src="http://www.matiastanea.gr:8888/wp-content/uploads/2012/04/0229-sarkozy-french-election-suddenly-everywhere_full_600.jpg" alt="" width="600" height="400" /></a></p>
<p>After the May 2005 referendum, the two leading presidential candidates ignored the fact that most French voters were against the creation of a European edifice whose basic flaws have since become clear. Yet the 2005 vote was taken after an uplifting national debate, unlike the current election campaign. And Sarkozy’s presidency, which was supposed to herald the return of voluntarist policies, is ending with some puzzling statements. All the leftwing candidates accuse the banks, but the French finance minister, François Baroin, claims that “blaming finance is as silly as saying ‘I’m against rain’, ‘I’m against cold weather’ or ‘I’m against fog’.” And the prime minister, François Fillon, told the Socialist candidate, François Hollande, that he should “get Standard and Poor’s to rate his election manifesto” (<a id="nh1" title="Respectively RTL, 22 January 2012, and Le Journal du dimanche, Paris, 15 (...)" href="http://mondediplo.com/2012/04/01frenchelections#nb1" rel="footnote">1</a>).</p>
<p>The sovereign power of the people has been undermined by the meek acceptance among the French political establishment of the market democracy mantra of Germany’s increasingly arrogant right wing. This issue is central to the current campaign, and is directly connected with the European debate. The austerity measures so passionately pursued for the past two years have not had — and will not have — any effect on the debt they are supposed to solve. Any leftwing strategy that does not question this financial orthodoxy is doomed. But the current political climate in Europe precludes any possibility of achieving this aim without a struggle.</p>
<p>At present, the general breakdown is contained by floods of money which the European Central Bank (ECB) lends to the private banks at low rates, and which the banks then lend back to the state at higher rates. But this brief respite depends on the whim of the ECB, entrenched in an “independence” rashly specified in the treaties. In the long term, most of the member states have undertaken, in response to German demands meekly passed on by Paris, to take even tougher measures and to impose sanctions on any member that fails to comply, in accordance with the Treaty on Stability, Coordination and Governance (TSCG) currently in the process of being ratified.</p>
<p>The punishment already inflicted on Greece is about to be extended to Spain, which has been ordered to reduce its budget deficit by a third, although unemployment is already at 22.8%. Portugal is not far behind, required to cut public spending although the rate of interest on its borrowing is rocketing (14% in March) and it is in deep recession (-3% growth in 2011). Tightening the financial screws on states with mass unemployment was the great economic and social panacea of the French right in the 1930s. As the Socialists explained at the time: “Deflation worsens the crisis, it stifles production and it reduces tax revenues” (<a id="nh2" title="Preamble to the Socialist group’s 1933 draft budget law." href="http://mondediplo.com/2012/04/01frenchelections#nb2" rel="footnote">2</a>).</p>
<p>The stupidity of the current policies only upsets those who still imagine they are intended to serve the general interest and not the oligarchs who pull the strings of the state. If finance has a face, this is it (<a id="nh3" title="In January Socialist candidate François Hollande said: “My true adversary has (...)" href="http://mondediplo.com/2012/04/01frenchelections#nb3" rel="footnote">3</a>).</p>
<h3>The first priority</h3>
<p>If there is a change of government, the new president’s first priority must be to question the TSCG (and other similar austerity measures). Success or failure in this will determine everything else: education, public services, fair taxation, employment. François Hollande would like to separate European solidarity, which he supports, from financial shock therapy, which he opposes. He has promised to “renegotiate” the TSCG, hoping to add “a section on growth and employment” with industrial projects at a continental level.</p>
<p>Yet Jean-Luc Mélenchon, the Left Front candidate, considers that “no leftwing policy is possible within the framework of these treaties.” Not surprisingly, he is against the TSCG and the European Stability Mechanism (ESM), which provides financial assistance for countries at risk that have agreed to draconian measures to balance their budgets. The Greens’ candidate, Eva Joly, and the Trotskyist candidates, Nathalie Arthaud and Philippe Poutou, are also campaigning for a “European audit of public debts”, or even to have them cancelled on the ground that the current level of such debts is due to the low taxes levied in the past 20 years and the interest paid to creditors.</p>
<p>Most European states, with Germany in the lead, are against renegotiating the treaties and will not hear of this, or of lending substantial sums to states in financial difficulties unless they have given assurances of “good” management (further privatisation and a review of important social security provisions — pensions, unemployment benefits, the minimum wage). The president of the European Central Bank, Mario Draghi, summed it up in an interview with <em>The Wall Street Journal</em> on 24 February: “There was a time when [it was said] that the Europeans [were] so rich they [could] afford to pay everybody for not working. That’s gone.” Draghi, who used to be vice-president of Goldman Sachs, added that “good” austerity would mean lower taxes (a measure that no French candidate, not even Sarkozy, is proposing) and lower public spending.</p>
<p>A leftwing president would immediately face opposition from most EU governments, who are almost all conservative, <em>and</em> from the ECB, the European Commission and its president, José Manuel Barroso. The British, Polish and Italian prime ministers, like the German chancellor, have deliberately refused to meet the French candidate, leading in the opinion polls but judged to be less malleable than the current president.</p>
<p>The Netherlands finance minister, Jan Kees de Jager, has already said: “We are certainly not in favour of renegotiation. But if Mr Hollande wants more reforms, we will be with him when it comes to liberalising services or reforming the labour market.” The Netherlands will support any leftwing French president whose policies are even more neoliberal than Sarkozy’s.</p>
<h3>The view from Germany</h3>
<p>While Angela Merkel has signified her willingness to participate in meetings of the French right, the German Socialists are less enthusiastic about their comrades on the other bank of the Rhine. The SDP leader, Sigmar Gabriel, has espoused their cause but another leading member, Peer Steinbrück, who hopes to succeed the chancellor next year, considers that Hollande’s commitment to “renegotiate all these [European] agreements yet again” was “naive”. He anticipates a change of heart: “If he is elected, his policy could turn out to be very different” (<a id="nh4" title="Agence France-Presse, 15 February 2012." href="http://mondediplo.com/2012/04/01frenchelections#nb4" rel="footnote">4</a>).</p>
<p><a href="http://www.matiastanea.gr:8888/wp-content/uploads/2012/04/09TH_MERKEL-SARKOZY_803565f.jpg"><img class="aligncenter size-full wp-image-2514" title="09TH_MERKEL-SARKOZY_803565f" src="http://www.matiastanea.gr:8888/wp-content/uploads/2012/04/09TH_MERKEL-SARKOZY_803565f.jpg" alt="" width="635" height="339" /></a></p>
<p>Indeed, this cannot be ruled out. Before the parliamentary elections in 1997, won by Lionel Jospin, the French Socialists promised to renegotiate the Amsterdam European Stability Pact — an “absurd concession to the German government”, according to Jospin. Once in power, all the French left managed to achieve was to get the words “and growth” added to the title of the pact.</p>
<p>Hollande’s campaign manager, Pierre Moscovici, returned to semantics in 2003: “The Treaty of Amsterdam had been negotiated — very badly — before we took over. It had many defects — the social content left much to be desired. … The new government could easily have refused to approve it … or at the very least asked for the negotiations to be resumed. We chose not to do so [Moscovici was minister for European affairs at the time]. With Jacques Chirac in the Elysée, we were facing a three-fold crisis. A Franco-German crisis, because any retreat on our part would have complicated our overall relations with that essential partner&#8230; A crisis with the financial markets, where the operators wanted the treaty to be adopted. … And lastly, a cohabitation crisis. … Lionel Jospin quite rightly chose to change tack, with a view to keeping his options open and eventually coming out on top. That is to say, getting the first European Council resolution on growth and employment in return for agreeing to the Treaty of Amsterdam” (<a id="nh5" title="Pierre Moscovici, Un an après, Grasset, Paris, 2003, pp 90-91." href="http://mondediplo.com/2012/04/01frenchelections#nb5" rel="footnote">5</a>). Read that, and you have to wonder what will happen if Hollande wins in May.</p>
<p>Should the left win the presidential and parliamentary elections, the picture would differ from that earlier outline. The French executive would not be divided as it was 15 years ago; but the political balance in Europe, which was centre-left in 1997, is now predominantly rightwing. That being said, even Spanish prime minister Mariano Rajoy’s deeply conservative government has reservations about the austerity imposed on it by Germany. In March, it announced its “sovereign decision” not to accept the European budgetary straitjacket.</p>
<p>At the same time, a dozen other countries, including Italy, the UK and Poland, called for a review of the Franco-German economic policy. Hollande has reason to be cheerful. He hopes that his election would upset the balance of power in Europe and that that he would be able to avoid a trial of strength with a number of European governments, the ECB and the Commission in Brussels.</p>
<p>But the new direction the neoliberal countries want has nothing to do with the changes he recommends. To some, “growth” means the Thatcherite package (low taxes, social and environmental deregulation); to others, a small range of public investments (education, research, infrastructure). The ambiguity cannot be maintained indefinitely. We shall soon be forced to consider “European disobedience”, as recommended by Mélenchon and other leftwing forces. Or continue on the present course, without any hope of relief.</p>
<p>Apart from their differences — on fair taxation, for example — Sarkozy and Hollande have both supported the same European treaties, from Maastricht to Lisbon. They have both endorsed the targets set for reducing the national deficit (3% of GDP in 2013, 0% in 2016 or 2017). They are both against protectionism. They both think growth will cure all ills. They support the same foreign and defence policies (the French Socialists no longer challenge Sarkozy’s decision to bring France back into Nato’s military command structure).</p>
<p>The time has come to break with all these premises. A change of president is an essential condition for this. But the record of past leftwing governments and the current campaign suggest that that will not be enough.</p>
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		<title>What are bankers doing inside EU summits?</title>
		<link>http://www.reinform.info/?p=2139</link>
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		<pubDate>Tue, 14 Feb 2012 12:08:13 +0000</pubDate>
		<dc:creator>dimitriswright</dc:creator>
				<category><![CDATA[News]]></category>
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		<category><![CDATA[Angela Merkel]]></category>
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		<description><![CDATA[Privileged access to EU summits helped the banking lobby avoid paying for their own excesses At the Euro Summits in July and October 2011[1], crucial decisions “to save the Euro” and “to save Greece” were made. It was agreed to restructure Greek debts and banks were asked to accept a &#8216;haircut&#8217; to their profits to [...]]]></description>
				<content:encoded><![CDATA[<p><em>Privileged access to EU summits helped the banking lobby avoid paying for their own excesses</em></p>
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<p>At the Euro Summits in July and October 2011[<a id="footnoteref1_nb71jlb" title="The Euro Summits and European Council summits of July 21st, October 23rd and October 26th 2011" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote1_nb71jlb">1]</a>, crucial decisions “to save the Euro” and “to save Greece” were made. It was agreed to restructure Greek debts and banks were asked to accept a &#8216;haircut&#8217; to their profits to avoid a Greek default and the risk that some banks might default as a result. In Summer 2011, the press was full of stories about the informal negotiations between EU leaders and the banks about the level of private sector involvement in restructuring Greece&#8217;s debts.</p>
<p>The Institute of International Finance (IIF), a lobby group established in 1983 by the biggest banks and financial institutions in the world to deal with the question of sovereign debt<a id="footnoteref2_mcmr6wp" title="See IIF's website: www.iif.com/about/" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote2_mcmr6wp">[2</a>], became the EU&#8217;s interlocutor on the Greek debt issue. Its proposals -described as &#8221;offers&#8221;- received red carpet treatment.</p>
<p>IIF&#8217;s president at the time, Josef Ackermann (Deutsche Bank), made sure he was in Brussels for the July Summit to defend the financial sector&#8217;s interests. The IIF&#8217;s general director Charles Dallara, was also reported to have met with more than one government leader at the Euro Summit suggesting that the IIF was involved in the negotiations right up until the last minute.</p>
<p>The politicians were supposed to be taking some big decisions, but apparently the banks had their say too. What exactly was the role of IIF?</p>
<h2>The official answer</h2>
<p>To get a clearer picture, Corporate Europe Observatory (CEO) requested access<a id="footnoteref3_5ylwf4g" title="Under the right of access to documents in the EU treaties, as developed in Regulation 1049/2001." href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote3_5ylwf4g">[3]</a> to the minutes and notes of the meetings of European Council representatives with the IIF in relation to the summits, as well as to the documents submitted by this lobby group. To our surprise, the European Council stated in its response[<a id="footnoteref4_sk2finm" title="See full correspondence: http://www.asktheeu.org/en/request/the_role_of_the_institute_of_int#incoming-68" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote4_sk2finm">4]</a> that contacts with representatives of the International Institute of Finance “before, during and after” the summits consisted only of “discussions between one Member State, namely Greece and private investors holding Greek bonds, to the degree that they are represented by the IIF”. The Council, in other words, claims that the IIF did not have meetings with any other EU governments during the EU summits, except for Greece.</p>
<p>The Council told CEO that these discussions were also attended by Troika representatives (i.e., from the European Commission, the European Central Bank and the International Monetary Fund), as well as by the president of the Economic and Financial Committee [<a id="footnoteref5_fgbsh9i" title="The Economic and Financial Committee is an EU committee set up to promote policy coordination among the Member States. It provides opinions at the request of the Council of the European Union or the European Commission. http://europa.eu/efc" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote5_fgbsh9i">5]</a>, Vittorio Grilli. This person was responsible of informing the Euro Summits about the discussions with the IIF that had taken place before.</p>
<p>However, it is very difficult to believe that there was no contact beyond that. As the media reports and some documents consulted suggest, the reality was very different. CEO has sent a complaint regarding the European Council&#8217;s response and requested an internal review.</p>
<h2>Looking for evidence</h2>
<p>News reports from before the start of July summit refer to a document signed by the IIF, dated 10 July and “delivered to European finance ministers”<a id="footnoteref6_rjk5mxm" title="O'Donnell, John, “Europe, IMF need to act soon to avoid contagion: IIF”, in Reuters, 12/07/2011 http://mobile.reuters.com/article/topNews/idUSTRE76B41O20110712?irpc=932" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote6_rjk5mxm">6</a>. In this draft paper, the lobby group said Euro zone countries and the IMF needed to show they could deliver a rescue plan for Greece, including a debt buyback. It is more than probable that this document influenced the final decisions adopted by the Head of States.</p>
<p>On the IIF website, details of their “offer for Greece”<a id="footnoteref7_ij4c9ez" title="IIF, IIF Financing Offer, 21/07/2011 http://www.iif.com/press/press+198.php" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote7_ij4c9ez">[7]</a> were published on the same day that they were adopted by the Summit. The document refers to “a context of a broader set of understandings reached with the European Union”.</p>
<p>When questioned by German non-profit watchdog organisation LobbyControl in October 2011[<a id="footnoteref8_d96xix3" title="Response to LobbyControl via email, 10 October 2011 from IIF press advisor, Frank Vogl as seen by CEO." href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote8_d96xix3">8]</a>, the IIF said that it “had sought to facilitate discussions between a wide array of private investors, including non-member IIF firms, and the official sector, including EU officials, the European Central Bank and the IMF. The role of facilitating the appropriate interchange of views between private creditors to Greece and official creditors was pursued at the behest and in the full knowledge of the Greek Government”.</p>
<p>This statement makes it clear that the IIF also met with Greece&#8217;s “official creditors” (as opposed to private creditors) i.e. the other Euro zone governments. IIF states explicitly that “Mr. Dallara and an IIF team had extensive meetings with very senior European government officials over several weeks”. Yet the Council claimed in its response to CEO that only the Greek government had met with the IIF.</p>
<p>In its response to LobbyControl, the IIF did not deny the involvement of three of its representatives (Ackerman, Dallara and Baudouin Prot) in encounters with a range of EU officials, but said: “They did not participate directly in the meeting of heads of state”. EurActiv and EuxTV, nevertheless, reported<a id="footnoteref9_rafxhgf" title="EurActiv and Eux TV, “In Greek rescue, Euro leaders take cue from Deutsche Bank chief”, 22/07/2011 http://www.youtube.com/watch?v=62Su_BSr69c" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote9_rafxhgf">[9</a>] that Joseph Ackerman visited the European Council on the occasion of the July Summit.</p>
<p>Contacts were also reported after the summit. The Greek media mentioned a conference call involving Dallara, with top EU officials, such as Eurogroup chair Jean-Claude Juncker and European Commissioner Olli Rehn, in which the implementation of the July summit decisions were discussed<a id="footnoteref10_oeo7oz2" title="Athens News, “Venizelos: EU summit decisions must be quickly applied”, 09/08/2011, in Athens News http://www.athensnews.gr/portal/11/45974" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote10_oeo7oz2">[10</a>].</p>
<p>And Dallara&#8217;s name appears again in media coverage of the Euro summits in October, when, according to media reports, there were two brief encounters in the office of Council President Herman Van Rompuy. The President of France, Nicolas Sarkozy, the President of Germany, Angela Merkel, and the representatives of the banks were also present. These encounters were described as crucial and decisive for the outcomes of the summits<a id="footnoteref11_3meax9d" title="Missé, Andreu, “Asuman la quita del 50% o prepárense”, en El País, 30/10/2011 http://www.elpais.com/articulo/economia/Asuman/quita/preparense/elpepieco/20111030elpepieco_5/Tes" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote11_3meax9d">[11</a>].</p>
<p>Bloomberg reported that &#8221;Europe’s leaders took the unusual step of summoning the banks’ representative, managing director Charles Dallara of the Institute of International Finance, into the summit to break the deadlock over how to cut Greece’s debt. Dallara squared off with a group led by Merkel and Sarkozy around midnight after issuing an e-mailed statement that “there is no agreement on any element of a deal”. According to Bloomberg, Sarkozy said the bankers were escorted in “not to negotiate, but to inform them on decisions taken by the 17&#8243;<a id="footnoteref12_uc3yayl" title="Neuger, James G. and Bodoni, Stephani, “EU Sets 50% Greek Writedown, $1.4T in Crisis Fight”, Bloomberg, 27/10/2011 http://www.bloomberg.com/news/2011-10-27/europe-leaders-set-50-greek-writedown-1-4-trillion-in-debt-crisis-fight.html See also:Brühl, Jannis, “Wie die Finanzlobby Politik macht”, Süddeutsche.de, 26/10/2011 http://www.sueddeutsche.de/geld/bankenregulierung-wie-die-finanzlobby-politik-macht-1.1173132" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote12_uc3yayl">[12</a>].</p>
<p>After the October deal, on 15 November a new conference call on the implementation of the deal was reported in the Greek media involving the Greek finance minister Evangelos Venizelos, Commisioner Rehn and Dallara<a id="footnoteref13_jke2ljo" title="TVXS, “Ξεκινούν οι διαπραγματεύσεις για το PSI”, 16/11/2011 http://translate.google.com/translate?hl=en&amp;sl=el&amp;tl=en&amp;u=http%3A%2F%2Ftvxs.gr%2Fnews%2Fellada%2Fksekinoyn-sti-frankfoyrti-oi-diapragmateyseis-gia-psi&amp;anno=2" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote13_jke2ljo">[13]</a>.</p>
<p>In a document circulated in September<a id="footnoteref14_sqt9w06" title="IIF, “The July 21, 2011 Support Package for Greece: Key Elements, Likely Impact and Benefits for Debt Sustainability”, 22/09/2011" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote14_sqt9w06">[14]</a> the IIF reported that its task force on Greece (made up of the banks exposed to the Greek debt) held &#8211; before the July Summit &#8211; several meetings with the Eurogroup Working Group<a id="footnoteref15_azx3c23" title="The Economic and Financial Committee also meets in a euro area configuration, the so called Eurogroup Working Group (EWG), in which only the Euro Area Member States, the Commission and the European Central Bank are represented. In this configuration, the Committee prepares the work of the Eurogroup." href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote15_azx3c23">[15]</a>, including senior officials from Euro countries and European institutions, headed by Vittorio Grilli. And this document says: “The elements of a possible approach to the private sector involvement were developed and were finally agreed with key Euro Area and Greek officials, and eventually with the heads of the Euro Area states or governments and EU institutions or IMF at their meeting of July 21, following negotiations led by IIF board chairman Josef Ackermann”.</p>
<h2>Who is winning the game?</h2>
<p>According to that document, the IIF financing offer “played a catalytic role in facilitating the July 21 agreement and forms an integral part of a comprehensive package in support of Greece announced by the Euro Area Heads of State or Government and EU Institutions on July 21, 2011 in Brussels”.</p>
<p>As can be guessed, if the outcome was rooted in the banks&#8217; offer, it was likely to be favorable for the financial sector. Indeed some experts have underlined how the banks gained from the deal. “If you look at the 21% and our demand for a 50% participation of private creditors, the financial sector has been very successful,” the German government&#8217;s economic advisor, Wolfgang Franz commented<a id="footnoteref16_z16j3y9" title="Cited in “ The power of Financial Lobby in the EU”, a video report by Stephan Stuchlik, Kim Otto and Andreas Orth, for Monitor. http://vimeo.com/34021633" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote16_z16j3y9"> [16</a>].</p>
<p>&nbsp;</p>
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<td>
<h3>Banks are on both sides of the table</h3>
<p>Petros Christodoulou, who has worked for Goldman Sachs as well as for the Greek National Bank (member of the IIF task force for Greece), has now a leading role in the Greek negotiating team. And the main economic advisor of Prime Minister Papademos is now Gikas Chardouvelis, who is in sabbatical from another member of the IIF task force: Eurobank EFG. So it seems bankers are sitting on both sides of the negotiating table and under the ever-watchtful eye of the Troika, of course. The next deal will probably include a transfer of the bond contracts under UK law, in order to take away from the Greek state, in case of a political change, any possibility of restructuring the debt according to the interests of its citizens.</p>
<p>See:</p>
<ul>
<li>Roche, Marc, &#8220;Goldman Sachs, the international web”, PressEurope, 3/3/2011</li>
<li>Durden, Tyler, “Head Of Greek Debt Office Replaced By Former Goldman Investment Banker”, Zero Hedge, 02/19/2010</li>
<li>Caruso-Cabrera, Michelle, “Greek Debt Deal Talks: How Much of a &#8216;Haircut&#8217;?”, CNBC, 10/1/202</li>
<li>Gikas A. Hardouvelis, <a href="http://www.hardouvelis.gr/GET.asp?lng=EN&amp;id=SCV&amp;" target="_blank">Curriculum vitae</a>.</li>
</ul>
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<p>In October, the banks had to recognise that their supposed solution was not enough and a 50% haircut was needed. But unlike in July, they failed to agree the technical details of this deal with the EU. These have to be agreed in negotiations with the Greek government and the result is likely to be again favorable for the financial sector.</p>
<p>The creditors will be reimbursed for 50% of the nominal value of the Greek bonds, whose real price in the secondary market is around 36% of their face value<a id="footnoteref17_4mjcyn5" title="Landon Thomas Jr., “Anticipating a Brutal Fallout: Banks in Europe Slowly Face Prospect Of Huge Losses From Greek Bonds”, The New York Times, 5/10/2011 http://query.nytimes.com/gst/fullpage.html?res=9A07E4D71730F936A35753C1A9679D8B63" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote17_4mjcyn5">[17]</a>. Foreign creditor banks will receive the equivalent (35% or 70 billion Euros) of today&#8217;s real value of their bonds (which otherwise would continue to fall) in new 20- and 30-year guaranteed bonds. The banks will exchange today&#8217;s &#8221;junk bonds&#8221; with AAA rated bonds. On top of that they will receive 15% (or 30 billion) in cash<a id="footnoteref18_0yise4q" title="Kontogiannis, Dimitri, &quot;ECB’s role in the PSI+ process “, Ekathimerini, 15/01/2012 http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_15/01/2012_422752" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote18_0yise4q"> [18]</a>.</p>
<p>In this way the banks will not only avoid the uncontrollable domino effect triggered by a Greek default, they will also gain 30 billion Euros in real terms. Greek banks will receive around 30 Euro additional billion from the new bail out package<a id="footnoteref19_24m2r0t" title="Global Finance Blog, “Greek banks 26.5 billion emergency loan to bail out”, 20/11/2011 http://www.globalfinanceblog.com/2011/11/20/greek-banks-26-5-billion-emergency-loan-to-bail-out/" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote19_24m2r0t">[19]</a>. All this money will be paid by tax payers in Euro zone member states through the Financial Stability Mechanism. Banks get a good deal, but Greece remains in debt. Member states pay the price instead of banks.</p>
<p>These tough conditions contributed to increase the pressure to the elected Greek government that finally had to resign and was replaced by Loukas Papademos, the former vice-president of the European Central Bank (ECB). Negotiations on how to implement public sector involvement (PSI) as envisaged by October Summit continue during January.</p>
<p>The omnipresence of the big banks&#8217; representatives wherever decisions are being taken and the ease with which they access decision makers explains how the final outcomes of these summits are influenced by the power of Ackermann and his friends, and consequently favour them.</p>
<p>Deutsche Bank and its president, Ackermann, were in December “awarded” the Lobbykratie Medaille<a id="footnoteref20_u2mjqis" title="See: http://www.lobbycontrol.de/blog/index.php/was-ist-die-lobbykratie-medaille/" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote20_u2mjqis">[20]</a>, an award hosted by LobbyControl that intends to put undemocratic lobbying in the spotlight. They won the embarrassing award for their lobbying campaign with the IIF to secure favourable conditions for the financial sector in the Greek debt crisis, while misleadingly pretending to be badly impacted by the result<a id="footnoteref21_j8rcj3f" title="“This hits us hard” said Ackermann, interviewed after July Summit. See: “ The power of Financial Lobby in the EU”, a video report by Stephan Stuchlik, Kim Otto and Andreas Orth, for Monitor. http://vimeo.com/34021633" href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnote21_j8rcj3f">[21</a>].</p>
<p>The banks, whose irresponsible lending practices are among the causes of the crisis, now appear to be dictating the terms of the solution for their own benefit. In other words, instead of revising the monetary system and sanctioning irresponsible banks, the EU invites them to determine a way out of the mess they have created.</p>
<ul>
<li id="footnote1_nb71jlb"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref1_nb71jlb">1.</a> The Euro Summits and European Council summits of July 21st, October 23rd and October 26th 2011</li>
<li id="footnote2_mcmr6wp"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref2_mcmr6wp">2.</a> See IIF&#8217;s website: <a href="http://www.iif.com/about/">www.iif.com/about/</a></li>
<li id="footnote3_5ylwf4g"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref3_5ylwf4g">3.</a> Under the right of access to documents in the EU treaties, as developed in Regulation 1049/2001.</li>
<li id="footnote4_sk2finm"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref4_sk2finm">4.</a> See full correspondence: <a href="http://www.asktheeu.org/en/request/the_role_of_the_institute_of_int#incoming-68">http://www.asktheeu.org/en/request/the_role_of_the_institute_of_int#inco&#8230;</a></li>
<li id="footnote5_fgbsh9i"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref5_fgbsh9i">5.</a> The Economic and Financial Committee is an EU committee set up to promote policy coordination among the Member States. It provides opinions at the request of the Council of the European Union or the European Commission. <a href="http://europa.eu/efc">http://europa.eu/efc</a></li>
</ul>
<ul>
<li id="footnote6_rjk5mxm"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref6_rjk5mxm">6.</a> O&#8217;Donnell, John, “Europe, IMF need to act soon to avoid contagion: IIF”, in Reuters, 12/07/2011 <a href="http://mobile.reuters.com/article/topNews/idUSTRE76B41O20110712?irpc=932">http://mobile.reuters.com/article/topNews/idUSTRE76B41O20110712?irpc=932</a></li>
<li id="footnote7_ij4c9ez"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref7_ij4c9ez">7.</a> IIF, IIF Financing Offer, 21/07/2011 <a href="http://www.iif.com/press/press+198.php">http://www.iif.com/press/press+198.php</a></li>
<li id="footnote8_d96xix3"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref8_d96xix3">8.</a> Response to LobbyControl via email, 10 October 2011 from IIF press advisor, Frank Vogl as seen by CEO.</li>
<li id="footnote9_rafxhgf"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref9_rafxhgf">9.</a> EurActiv and Eux TV, “In Greek rescue, Euro leaders take cue from Deutsche Bank chief”, 22/07/2011 <a href="http://www.youtube.com/watch?v=62Su_BSr69c">http://www.youtube.com/watch?v=62Su_BSr69c</a></li>
<li id="footnote10_oeo7oz2"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref10_oeo7oz2">10.</a> Athens News, “Venizelos: EU summit decisions must be quickly applied”, 09/08/2011, in Athens News <a href="http://www.athensnews.gr/portal/11/45974">http://www.athensnews.gr/portal/11/45974</a></li>
<li id="footnote11_3meax9d"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref11_3meax9d">11.</a> Missé, Andreu, “Asuman la quita del 50% o prepárense”, en El País, 30/10/2011 <a href="http://www.elpais.com/articulo/economia/Asuman/quita/preparense/elpepieco/20111030elpepieco_5/Tes">http://www.elpais.com/articulo/economia/Asuman/quita/preparense/elpepiec&#8230;</a></li>
<li id="footnote12_uc3yayl"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref12_uc3yayl">12.</a> Neuger, James G. and Bodoni, Stephani, “EU Sets 50% Greek Writedown, $1.4T in Crisis Fight”, Bloomberg, 27/10/2011 <a href="http://www.bloomberg.com/news/2011-10-27/europe-leaders-set-50-greek-writedown-1-4-trillion-in-debt-crisis-fight.html">http://www.bloomberg.com/news/2011-10-27/europe-leaders-set-50-greek-wri&#8230;</a> See also:Brühl, Jannis, “Wie die Finanzlobby Politik macht”, Süddeutsche.de, 26/10/2011 <a href="http://www.sueddeutsche.de/geld/bankenregulierung-wie-die-finanzlobby-politik-macht-1.1173132">http://www.sueddeutsche.de/geld/bankenregulierung-wie-die-finanzlobby-po&#8230;</a></li>
<li id="footnote13_jke2ljo"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref13_jke2ljo">13.</a> TVXS, “Ξεκινούν οι διαπραγματεύσεις για το PSI”, 16/11/2011 <a href="http://translate.google.com/translate?hl=en&amp;sl=el&amp;tl=en&amp;u=http%3A%2F%2Ftvxs.gr%2Fnews%2Fellada%2Fksekinoyn-sti-frankfoyrti-oi-diapragmateyseis-gia-psi&amp;anno=2">http://translate.google.com/translate?hl=en&amp;sl=el&amp;tl=en&amp;u=http%3A%2F%2Ft&#8230;</a></li>
<li id="footnote14_sqt9w06"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref14_sqt9w06">14.</a> IIF, “The July 21, 2011 Support Package for Greece: Key Elements, Likely Impact and Benefits for Debt Sustainability”, 22/09/2011</li>
<li id="footnote15_azx3c23"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref15_azx3c23">15.</a> The Economic and Financial Committee also meets in a euro area configuration, the so called Eurogroup Working Group (EWG), in which only the Euro Area Member States, the Commission and the European Central Bank are represented. In this configuration, the Committee prepares the work of the Eurogroup.</li>
<li id="footnote16_z16j3y9"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref16_z16j3y9">16.</a> Cited in “ The power of Financial Lobby in the EU”, a video report by Stephan Stuchlik, Kim Otto and Andreas Orth, for Monitor. <a href="http://vimeo.com/34021633">http://vimeo.com/34021633</a></li>
<li id="footnote17_4mjcyn5"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref17_4mjcyn5">17.</a> Landon Thomas Jr., “Anticipating a Brutal Fallout: Banks in Europe Slowly Face Prospect Of Huge Losses From Greek Bonds”, The New York Times, 5/10/2011 <a href="http://query.nytimes.com/gst/fullpage.html?res=9A07E4D71730F936A35753C1A9679D8B63">http://query.nytimes.com/gst/fullpage.html?res=9A07E4D71730F936A35753C1A&#8230;</a></li>
<li id="footnote18_0yise4q"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref18_0yise4q">18.</a> Kontogiannis, Dimitri, &#8220;ECB’s role in the PSI+ process “, Ekathimerini, 15/01/2012 <a href="http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_15/01/2012_422752">http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_15/01/2012_422752</a></li>
<li id="footnote19_24m2r0t"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref19_24m2r0t">19.</a> Global Finance Blog, “Greek banks 26.5 billion emergency loan to bail out”, 20/11/2011 <a href="http://www.globalfinanceblog.com/2011/11/20/greek-banks-26-5-billion-emergency-loan-to-bail-out/">http://www.globalfinanceblog.com/2011/11/20/greek-banks-26-5-billion-eme&#8230;</a></li>
<li id="footnote20_u2mjqis"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref20_u2mjqis">20.</a> See: <a href="http://www.lobbycontrol.de/blog/index.php/was-ist-die-lobbykratie-medaille/">http://www.lobbycontrol.de/blog/index.php/was-ist-die-lobbykratie-medaille/</a></li>
<li id="footnote21_j8rcj3f"><a href="http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits#footnoteref21_j8rcj3f">21.</a> “This hits us hard” said Ackermann, interviewed after July Summit. See: “ The power of Financial Lobby in the EU”, a video report by Stephan Stuchlik, Kim Otto and Andreas Orth, for Monitor. <a href="http://vimeo.com/34021633">http://vimeo.com/34021633</a></li>
</ul>
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<blockquote><p>http://www.corporateeurope.org/news/what-are-bankers-doing-inside-eu-summits</p></blockquote>
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