The Greek Crisis Shows the Fundamentally Undemocratic Nature of the Eurozone

[marmar]

The Greek Crisis Shows the Fundamentally Undemocratic Nature of the Eurozone
To the Troika, the election of Syriza, the referendum vote and the basic principles of democracy are meaningless.

BY ALEXANDROS ORPHANIDES


(In These Times) As of Tuesday evening Greek time, eurozone leaders have forced an ultimatum on Greece’s government: capitulate within five days or leave. Warning that Syriza’s refusal to meet the terms of austerity imposed on them, European Commision President Donald Tusk and European Council President have made it clear that a “Grexit,” a Greek exit from the eurozone, is in the cards—a situation that Tusk says would be “most painful for the Greek people.”

This past Sunday, the Greek people were faced with a referendum on the very issue of austerity, posing a simple yes or no question: accept the bailout and austerity or reject it. A “yes” would mean continued “support,” in the form of fiscal abuse from the Troika (the International Monetary Fund, the European Commission and the European Central Bank), whereas a “no” would rebuff the seemingly all-powerful creditors, placing their government on a collision course with an ever-more-hostile troupe of finance officials. As the referendum results began to trickle in, it soon became clear: the Greeks, in a tremendous majority, voted “oxi”—“no,” against austerity.

It’s a frenzied time. Economics professor-turned-Greek finance minister Yanis Varoufakis resigned from his post, ostensibly due to pressure from Troika officials. The Greek banks are crumbling and on the brink of collapse. As of Monday evening, the European Central Bank is applying fiscal pressure to Greek banks as they quickly run out of money.

There are a number of paths Syriza can take—I’ve written on some of them, as have countless others. None of those paths will be painless. But after the referendum vote, it has become clear that is much more than an economic crisis in Greece. This is the latest occurrence of a crisis between the forces of capitalism and the ideals of democracy. By calling for a plebiscite on the issue and by garnering the support of the majority of Greeks, Syriza answered the Troika with a question of its own: neoliberalism and austerity, or democracy and human dignity—which will it be? ..............(more)

http://inthesetimes.com/article/18166/the-greek-crisis-shows-the-fundamentally-undemocratic-nature-of-the-eurozon

[truebluegreen]

1. The Eurozone can operate as a democracy, or an empire.

It's pretty clear which path they have chosen.

[randome]

2. Just as it's 'undemocratic' to have federal law trump state law?

Europe is trying to fashion itself into a United Nations of Europe. It's a worthy goal but there are bound to be some bumps along the way.

And no one forced Greece to abide by EU terms. That's part of Democracy, as well: choosing what nations to align yourself with.
[hr][font color="blue"][center]Birds are territorial creatures.
The lyrics to the songbird's melodious trill go something like this:
"Stay out of my territory or I'll PECK YOUR GODDAMNED EYES OUT!"[/center][/font][hr]

[geek tragedy]

3. The Eurozone was poorly conceived--states surrendered just the wrong amount of sovereignty

If they're going to give up currency rights, they need to go all in and have one central spending and one central taxation and one central political decisionmaking center.

if people in New York or California were asked to perform multiple bailouts for West Virginia or Mississippi, things would get toxic very quickly.

[pennylane100]

4. I am no economic expert but I think something like that is happening here.

I read an article that lists the states by return on capital investment. http://www.theatlantic.com/business/archive/2014/05/which-states-are-givers-and-which-are-takers/361668/

This was in 2014 and if I am understanding it properly, the US tax payer has helped fund the cost of building the flagpole that is flying that confederate flag in Charleston. The good news is that if I am right, we will also help fund the cost of taking it down. A very worthy cause. Of course, they should have paid it themselves but it is a good cause.

[geek tragedy]

5. that's because the US is a single political entity

New Yorkers and Californians pay most of their taxes to the federal government.

When places like Detroit face bankruptcy, their only recourse is the federal government, not other states.

[Igel]

6. No, it is not undemocratic.

People have redefined the word "democracy" in really bad ways.

If Greece votes to oppose austerity, that's fine. I can oppose austerity. Nobody is going to invade it. They can make their choice.

However, their choice has a consequence. The Greeks voted for Greece. The Greeks do not get to have their vote dictate what people outside of Greece do. They cannot vote to sell off land in Berlin, to impose taxes in France, to stipulate Polish macroeconomic policy. They can vote to tell their own government what to do.

If they have voted to say "no" to austerity, that's their choice.

Now, what others do in respect is the choice of those others. If the consequence of the anti-austerity vote is that Tsipras demands free money, forgiveness of debt, and even the territory of Bulgaria, that's reasonable.

If the decision of others, who are also free to make their own choices since it's not a dictatorship, says that Greece can accept their demands or leave, then Greece has a second decision to make.

Otherwise, what you're saying is that democracy in Greece = the ability to dictate to other countries.

There's a lot of that petty despot in all of us. Esp. when We have the side of Right and Truth and Justice on Our side, and really expect others to show Us the respect We merit.

Oh, and by the way, remember Nazi Germany was really bad to Greece. They have bankers and other people we don't like. (Just throwing that in for added emotional and ideological bias. It's irrelevant, of course.)