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Showing posts with label Papandreou. Show all posts
Showing posts with label Papandreou. Show all posts

Wednesday 2 November 2011

Eurocrats are terrified of democracy

Shall I tell you the truly terrifying thing about the EU? It’s not the absence of democracy in Brussels, or the ease with which Eurocrats swat aside referendum results. It’s the way in which the internal democracy of the member states is subverted in order to sustain the requirements of membership.
George Papandreou, the luckless Greek leader, is the latest politician to find himself being chewed up because he stands in the way of the Brussels machine. On Monday afternoon, Papandreou announced a referendum on whether to accept the EU’s bail-out terms. He had evidently had enough of the antics of the opposition party, New Democracy, which kept insisting that Greece remain in the euro, while opposing all the austerity measures necessary to that end – an outrageous stance given that New Democracy ran up the deficit in the first place. Papandreou hoped to force his opponents off the fence: in favour of the spending cuts or against euro membership. Perhaps he also hoped to put pressure on the EU to offer more generous terms.

I wish I could convey the sheer horror that his proposal provoked in Brussels. The first rule of the Eurocracy is “no referendums”. Brussels functionaries believe that their work is too important to be subject to the prejudices of hoi polloi (for once, the Greek phrase seems apposite). Referendums are always seen as irresponsible; but, at a time when the euro is teetering on the brink, Papandreou’s proposal was seen as an act of ingratitude bordering on treason.

Across the palaces and chanceries of the continent, Euro-elites closed ranks. Nicolas Sarkozy’s spokesman described Papandreou’s announcement as “irrational and dangerous”, Angela Merkel’s called it “irritating”, Silvio Berlusconi’s “negative”. Such phrases, in the mouths of government officials, suggest purple, choking rage.

The Athens establishment lined up with them. Antonis Samaras, the leader of New Democracy, vowed – with splendid disregard for his party’s name – to prevent a referendum “at all costs”. Constantine Michalos, the president of the Athens Chamber of Commerce, called the proposal “an act of political blackmail”. All these insults were provoked by the suggestion that people be allowed to determine their future through the ballot box.

Euro-enthusiasts in Brussels and in Athens are ready to bring down an elected government rather than allow a referendum. Yet the funny thing is that Papandreou is a Euro-enthusiast. He fervently wants to remain in the euro, and had been planning to campaign for a Yes vote. His sin, in the eyes of Brussels, was not to hold the wrong opinions, but to be too keen on democracy. Leninists had a term for people who, while they might be committed Bolsheviks, none the less behaved in a way which endangered the movement. They were called “objectively counter-revolutionary”. Poor Papandreou finds himself in this category.

Nor is he the first. When it became clear that Ireland was to have a referendum on the Lisbon Treaty, Bertie Ahern was required to fall on his sword lest the corruption allegations seeping about him tainted the Europhile cause. He was replaced by Brian Cowen, the former Europe minister, who went on to lose the referendum anyway. Cowen then refused to accept the verdict, siding openly with Brussels against his own countrymen. Result? Fianna Fáil, the party which had won the most votes at every election since 1932, was extirpated.

Borrowing a phrase from C S Lewis, I think of this phenomenon as the EU’s “hideous strength”. Brussels has a bizarre power to make politicians break their words, split their parties and betray their voters so as to keep the project going. Again and again, it makes good men do bad things.

Think of the way all three British party leaders whipped their MPs against an EU referendum proposal last week – despite the fact that two thirds of the country wanted such a vote, and despite the fact that all three parties were promising referendums on Europe in the last Parliament. Think of the way Margaret Thatcher was ousted, by a combination of Tory Europhiles and Continental leaders, when she made clear her opposition to Jacques Delors’s plans for Euro-federalism.

One of Papandreou’s supporters, a socialist MEP called Anni Podimata, argued that a referendum would bring catharsis. It’s a good metaphor. Catharsis is the purification and emotional renewal that comes at the end of a Greek tragedy. Greece has been through the hubris – the boom years, when the markets pretended that Greek and German debt were interchangeable – and is now suffering the nemesis, but the catharsis has been artificially stayed. Greece won’t begin to grow again until it leaves the euro, writes off its debts and prices itself into the markets.

Eurocrats are prepared to pay any price rather than admit that the single currency was a mistake – or, more precisely, to expect their peoples to pay, since EU officials are exempt from national taxation. The peripheral countries are to suffer poverty, unemployment and emigration, the core countries perpetual tax rises, so that supporters of the euro can save face.

It’s chilling to write these words, but EU leaders are evidently prepared to vitiate Greek democracy and wreck the Greek economy rather than allow the euro to break apart. Yet even if they succeed in Greece, they may find that their efforts are for nothing. Italian bond spreads yesterday were back at the level that usually triggers bail-outs. We are about to see quite how far the Brussels apparat will go in defence of its privileges.
 
Daniel Hannan is a Conservative MEP for South East England

This is no return to ancient Greek democracy


There may be nothing new under the sun, but according to the ancient Greeks it is quite the celestial Johnny-come-lately. Long before the sun, long even before the Titans rose and fell, and Zeus slew his father Cronos to seize control of Olympus, there was only Chaos. The mother of all things is back in charge as the muthah of all financial crises moves closer – thanks to the modern Greeks – to sucking us all into the Abyss (Chaos's firstborn, as you cosmology fans well know). Perhaps by now a semblance of order has re-asserted itself over the mayhem prevailing at the time of writing, with markets in freefall and confusion reigning over Greece's forthcoming referendum on the euro bailout. If so, it won't last long.
The date of that vote is as unclear as any intricate political calculations behind Prime Minister George Papandreou's decision to call it, or even whether he informed the Franco-German neo-axis powers before announcing it. Nor is it obvious what the precise implications for Europe might be, other than perfectly hideous.

Chaotic hardly seems an adequate adjective. The Greeks have unleashed pandemonium, and if there is any hope remaining in Pandora's box this time around, you'd want the Hubble Telescope to locate it. In the frantic quest for an upside, all I can dredge up is gratitude that I took the mediocre redbrick degree in Classics, hence all the tiresome and pretentious allusions, rather than in economics. Now that would have been a waste of time. No professional economist has much clue what's going on, beyond a basic appreciation that we are, as Richard Littlejohn will surely put it, going to Hellas in a handcart.

What is abundantly clear is that all the comparisons between this grumbling nightmare and the approach to war in 1939 were less fanciful than one would have liked, though in the globalised age everything moves faster. There was almost a calendar year between Neville Chamberlain declaring peace for our time and war with Germany. From the moment Angela Merkel and Nicolas Sarkozy waved their Greek bailout paper in Brussels and Mr Papandreou's startling announcement were barely five days.

Why he did so is the source of contention, but we can probably rule out any driving passion to invoke the memory of fifth century BC Athens. Some muscular Eurosceptics will posit that, in offering the plebiscite denied us, Mr Papandreou honours his nation's status as the birthplace of democracy. But politicians tend not to think in such grandiose terms when trying to navigate a course between a rock and hard place. Or, to continue this whirlwind odyssey through half-remembered lectures, between Scylla and Charybdis. The waters may be uncharted, but the menaces to Greece are in plain sight. On one side stand the unforgiving rocks of unending austerity within the eurozone, struggling to tame sovereign debt which remains crippling despite that offer of a 50 per cent haircut. Already suffering horribly and riven by civil unrest, the Greeks do not much fancy a future of penury under German dominion, as the explosion there of Nazi-themed cartoons and graffiti confirms.

On the other side lies the dreaded whirlpool of "disorderly default"... leaving the euro in disgrace, and attempting to return to growth via a devalued drachma, with no protection from the world's second reserve currency. Which is the quicker route to perdition is anyone's guess, but from this remove it looks a bit like offering a terminal patient the choice between a revolver and the hemlock.

Mr Papandreou, who seems neither a madman nor a nihilist, will not have taken this apparently deranged last throw of the dice without feeling irresistible pressure. Apart from a livid electorate, he is assailed by an opposition so irresponsible in promising cure without pain that it makes Ed Balls look like Stafford Cripps the day his hairshirt returned from Sketchley's with a wire-wool lining. In delegating the decision, he presumably believes this is the only possible way to compel the opposition to face reality and to scare the electorate into accepting that the alternative is worse than the bailout. It is, to put it gently, a monstrous gamble.

It is also playing with fire on behalf of the rest of us, within and outside the eurozone. If Greece goes, as begins to look inevitable, the fall of Italy becomes more imminent... and as with their respective empires long ago, the latter is rather more threatening to the rest of Europe than the former. Perhaps when your liver is being daily devoured by vultures, you can be forgiven for losing sight of any obligation to the world beyond your shores.

It hardly behoves a country that slags the euro off from the sidelines at every turn – to borrow from Mr Sarkozy's trenchant rebuke to David Cameron – to lecture others on the altruistic need to remain in it. But there is a strong sense that, just as with the supremacy of chaos, the Greeks have been here before. Disguised as a white bull, Zeus kidnapped Europa and ravished her. With this referendum, Greece seeks to take Europe hostage and is screwing her in Olympian fashion once again.