Alexis Tsipras of SYRIZA: Impact of austerity on Greece 'catastrophic'

In the current Eurozone crisis Greece has been unfairly cast as the "black sheep" of Europe. Greece isn't alone in being negativel..

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Alexis Tsipras of SYRIZA: Impact of austerity on Greece 'catastrophic'

Published on 2012-05-19 02:08:00

In the current Eurozone crisis Greece has been unfairly cast as the "black sheep" of Europe. Greece isn't alone in being negatively impacted by neoliberal economic policies - policies that have precipitated a meltdown in the Eurozone and a growing gulf between classes. It isn't a Greek crisis, it's a European crisis, a crisis of capital - Greece just happens to be the stage where the drama is presently coming into sharpest focus. The Greece Solidarity Campaign recently met with Alexis Tsipras (leader of the left-coalition party SYRIZA) and other Greek representatives. Tsipras described the impact of austerity on Greece as "catastrophic." He says the prescription to cure the economic crisis is "the medicine of disaster." He further likened it to "shock neoliberal measures" along the lines of a socio-political experiment. In discussing the background to austerity in Greece the GSC learned that: ... ... 110 billion euros were lost through avoidance and evasion of tax on profits by the richest in Greece, with tax evasion by the rich on a grand scale in the last 10 years. Instead of collecting money owned by the wealthy a direct tax (VAT) of 23% has been levied, affecting the poorest most. An example of this was given: Greece has the biggest merchant fleet in the world, but the fleet owners pay less in tax that the entire immigrant population in Greece. They described how for two and a half years the banks, bailed out in 2008, have not paid back the money that they owe the Greek people. Tsipras described the ESKRO off-shore account created outside of Greece by the Greek government, which will pay banks and other international creditors first, and whatever is left will go to meet the social needs of Greece. 40 billion Euros of capital has left Greece in the last year.

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