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News > Greek Crisis is a European crisis and puts future of Europe at risk!

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European Social Model, Participative democracy and civil dialogue

Greek Crisis is a European crisis and puts future of Europe at risk!

As the result of the breakdown of negotiations last weekend and the Greek delegation leaving, we call for a strong civic reaction in Europe.

Despite scaremongering, accusations amongst various stakeholders, urgent press conferences and calls for referendum, the publication of the negotiation proposals by the European Commission last weekend gives clearly evidence for a push to continue austerity. Although qualified by Commission President Juncker as “responsible and socially balanced”, they continue policies that lead to further rise of inequalities.

The negotiation document published contains a package of measures, illustrating why the EU speaks on “programme countries” ruled by the (no longer called) Troika that includes – amongst others – elements aimed at further budget cuts and tax increases:

  • Adopt legislation to reform the VAT system;
  • Close possibilities for income tax avoidance;
  • Extend implementation of luxury tax on recreational vessels in excess of 10 meters and increase the rate from 10% to 13%; and
  • Align non-wage benefits such as leave arrangements, per diems, travel allowances and perks, with best practices in the EU.

Several proposed measures, however, raise profound questions for the social stability in Greece and seem in our perspective to undermine democratic legitimacy. It is highly doubtful if the (no longer called) Troika has the mandate to force structural reforms that will guarantee a further spread of poverty and social exclusion in Greece.  The EC, ECB nor IMF have no authorization for instance to VETO reforms in the field of employment and labour law, pensions, healthcare, privatisation etc. undermining the principle of subsidiarity that is enshrined in the Treaties of the European Union.

The continuation of the process in its actual shape will hamper the communality of the European project and opens a dangerous Pandora box, whose forces will be difficult to be contained. Finger pointing, promoting stereotypes and prejudices pave the way to nationalism and puts people against each other. We should also keep in mind to what this way of forced “reforms” has led to 40 years ago in Latin America: social deterioration and strengthening dictatorships. The arrogance of Junckers’ statement to the Greek people “You shouldn’t commit suicide because you’re afraid of death” while speaking on the latest developments is evidence – in our view – of pushing Greece out of the European community and hinting that a democratic tool (such as a referendum) is the real suicide of the European project.

SOLIDAR calls the institutions to open the door for a real negotiation, giving Greece a chance to restructure its debt, saving the social acquis, and getting the possibility to invest if ever growth shall return. The current policies have deteriorated rather than improved the situation for the Greek people.

As European citizens we call for:

  • A real dialogue between institutions, governments, social partners and civil society on ways out of the crisis and restructuring the Greek debt
  • to overcome the mantra of structural reforms in the respect of the Treaties and of the article 9 in particular: “In defining and implementing its policies and activities, the Union shall take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health.”
  • A serious negotiation of debt alleviation giving air to breath to Greece
  • A responsible and respectful discourse of policy makers at national and European level
  • A mobilisation from European civil society actors to overcome nationalistic and egoistic interests of and within member states by redesigning, rehabilitating giving sense to the common European project.

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