Syriza has won the Greek election, becoming the first party to win a general election in Europe during the crisis opposed to imposing austerity on its population.
Austerity in Greece – demanded by the terms of the ‘bailout’ by the Troika (European Commission, European Central Bank and International Monetary Fund) – has crippled the economy, with GDP falling by 26% since 2009, and unemployment also at 26%.
- Write-off the greater part of public debt’s nominal value so that it becomes sustainable in the context of a European Debt Conference.
- Include a growth clause in the repayment of the remaining part so that it is growth-financed and not budget-financed.
- Include a significant grace period moratorium in debt servicing to save funds for growth.
Their win has seen them eclipse Pasok, historically the largest party of the Greek left, who have fallen from 44% in the October 2009 election, to just 4.8% this week, after they oversaw the introduction of austerity under the Troika’s bailout.
Syriza will immediately seek a renegotiation of the terms of the ‘bailout’ – as is their mandate to do so – when the current ‘bailout’ expires on 28th February.
Economists from around the world have urged other national governments to support a cancellation of a large part of the Greek sovereign debt and new terms of payment for the rebuilding of a sustainable Greek national economy.
But commentators have already warned Greece faces the determined opposition of EU leaders and powerful interests within Greece itself and requires international support.
It is vital they receive international support to renegotiate Green public debt and end the humanitarian crisis.
- Syriza’s immediate priorities to end the austerity programme, renegotiate the public debt so a proportion can be cancelled and link repayment or the remainder to economic growth and to address the humanitarian crisis