Syriza's Agreement with Troika: Who Blinked?

The 4-month agreement negotiated between the new Greek Government led by Syriza and the Troika -- the European Commission, European Central Bank, and the IMF -- have been sharply criticised by a number of commentators. They have held that essentially Syriza has blinked and accepted the austerity program that they had said they will not except for this 4 month reprieve. Others believe that this is a smart move and gives Greece some wiggle room for now, while it mobilises European opinion against the austerity program that is devastating the European working class and even large sections of the middle class. Newsclick brings both these views to its readers. We believe that how Syriza handles what is essentially a bad deal for now is much more a political question than an economic one. Clearly, Syriza has accepted the framework of the earlier 2010 agreement for this short term reprieve. How it uses this 4-month period and to what purpose, will determine Syriaza's future and much of the future of parties such as Podemos in Spain.

The Reality of Retreat

In the last few days, there have been two sophisms circulating among those who refuse to look reality squarely in the face and recognize the retreat that Syriza has been forced to make, as well as its possible consequences. Or rather, two and a half. And I say “forced” with good reason, because the new government has been trapped by its mistaken strategy (though I wouldn’t say it was a “betrayal” or “capitulation,” since these are moralizing terms that are of very little use for understanding political processes). Read more...

The Greek Debt Interim Agreement: Necessary Step or Sell-Out?

Last Friday, February 20, Greece’s Syriza government agreed to a four month extension of the current debt package that has been in effect since Greece’s last debt renegotiation in 2012, thus agreeing to the main demand of the Troika that it do so as a condition for further negotiations. Some have read this as a ‘sell-out’ by Syriza of its election promises to reject the austerity measures the Troika established in 2010 and 2012, which have kept Greece in a condition of perpetual economic depression for the past half decade. By agreeing to continue current debt arrangements for another four months, critics say Syriza has also reneged on its promise to reject the Troika’s previous debt deal. The same critics argue that Syriza should have simply declared ‘no’ to extending both the current debt package and related austerity measures by the February 28 expiration date. And if the Troika didn’t like it, so be it; Greece should just leave the Euro currency zone. Read more...