The Revolutionary Communist Group – for an anti-imperialist movement in Britain

Greece defaults amid protests

Fight Racism! Fight Imperialism! 222 August/September 2011

On 21 July, after years of struggling with spiralling debt, the Greek economy defaulted in all but name as it agreed to a huge debt-restructuring package financed by the European Union. The default has come about amid nationwide protests against severe austerity measures. Throughout June and into July hundreds of thousands of people demonstrated on the capital’s streets to a chorus of ‘Can’t pay! Won’t pay!’

On 15 June Greece had its tenth general strike in two years, bringing much of the country to a standstill. This was followed on 29 June by thousands of angry protesters congregating outside Parliament, where the Pan Hellenic Socialist Movement (PASOK) government, led by Prime Minister George Papandreou, pushed through a vote for further austerity measures. The package approved envisages €28bn in tax hikes and spending cuts by 2015.

Just prior to the vote the government came close to collapse with party resignations leaving PASOK with a majority of only four MPs. Papandreou was forced to offer his resignation in the run-up to a parliamentary confidence vote on the 21 June. The gesture was empty; instead he reshuffled his cabinet and appointed a new finance minister, Evangelos Venizelos, on 17 June. The new cabinet also included so-called ‘anti-cuts’ members of PASOK. Bringing such opportunistic figures into the fold was enough for the government to survive the confidence vote.

A new movement takes hold

The Greek people are seeing the debt build up before them and they refuse to accept it. What is happening now in Greece is more than just a few protests – a mass movement is coming into existence. Over the past two months hundreds of thousands of the protesters naming themselves the ‘indignants’ have camped out in Athens’s Syntagma Square to debate and find solutions to the country’s problems. Inspired by Tahrir Square in Cairo and recent protests in Madrid, such gatherings and others like it around the country have been organised independently of the old opportunist left and trade union bureaucracy and have been attended by a large number of Greece’s disillusioned working class. Many Greek people have become engaged in political activity for the first time. Protester Vangelis Papadoyiannis said ‘They want to suppress social rights acquired in past decades and take us back to the Middle Ages to save banks and bankers. In my company there were 100 layoffs in January alone, our salaries were cut by 15% and there is more to come.’

The proposals of the new movement include a refusal to pay what they call the ‘odious’ debt and demands that the memorandum between Greece and the IMF be cancelled. In addition, the movement rejects the notion that the current ‘democracy’ can guarantee either justice or equality. It calls for a new constitution, written by the people, higher taxes for the rich and for corrupt politicians to be sacked or gaoled. The movement calls for demonstrations every evening at 6pm and an assembly at 9pm.

The point about tax is important because the self-assessment tax system in Greece has essentially allowed the ruling class to dodge paying vast amounts into state coffers over the past two decades. It is estimated that only 3,000 people declare earnings of over €100,000.

As with all movements, different forces are emerging, and some are coming into confrontation with each other. There are right-wing, nationalist and racist components which are attempting to hijack this massive popular movement. Fights have broken out not just between protesters and police, but also between anarchists and the newly-emerged nationalists who are leeching off the protest movement.

It is clear that the trade unions and the established left no longer have a leading role to play. They have demonstrated that they are bankrupt both in policy and action and hold little sway with the majority of people. They have failed to mobilise when it has mattered and have refused to make a clear break from PASOK. These old opportunist organisations are now being left behind by the movement. There is a fresh optimism initiating change now as the Greek people are organising amongst themselves, debating problems and discussing possible solutions. Though the protests throughout July have not been as large as those around the crucial parliamentary votes in June, demonstrations are still taking place, with daily occupations of the main squares and evening assemblies. A firm and secure base for a new movement has been created and this will be built upon as anger grows over the deepening austerity measures.

Victory to the Greek people!

Andrew Alexander

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