Why Angela Merkel Is Wrong On Greece
by Juergen Habermas
full: http://www.socialeurope.eu/2015/06/why-angela-merkels-is-wrong-on-greece/

[The German original of this article appeared in Sueddeutsche Zeitung, 
June 22, 2015
http://www.sueddeutsche.de/wirtschaft/europa-sand-im-getriebe-1.2532119 ]


[...]

The Greek election result is a vote against humiliating misery

Because the federal German Chancellor opted as early as May 2010 to treat
investor interests as more important than a haircut in restoring the Greek
economy to health, we’re stuck in a crisis once more. This time it’s the hole
left by another institutional deficit that emerges.

The Greek election result is the vote of a nation that, with a significant
majority, is standing up against the humiliating as well as oppressive misery of
an austerity policy imposed upon their country. There can be no argument about
the vote itself: The population rejects the continuation of a policy whose
drastic failure is something they have experienced at first hand. Equipped with
this democratic legitimacy, the Greek government is trying to bring about a
change of policy in the Eurozone.

This brings them in Brussels right up against the representatives of 18 other
governments which justify their rejection by coolly pointing to their own
democratic mandate. You’ll recall those first meetings when the arrogantly
swaggering novices basking in the upbeat mood of their triumph joined in
grotesque battle with the incumbent rulers acting partly like paternalistic
uncles and partly like sneering old hands: Both sides insisted parrot-like that
they enjoyed the authority given by their respective "people".

The unintentionally comic nature of their uniformly nation-state way of thinking
brought what is lacking unmistakably to the attention of European public
opinion: a focus for a common decision-making process among citizens across
national borders about weighty courses of political action in the core of
Europe.

But the veil cast over this institutional deficit of an empowered European
Parliament based on a European-wide system of political parties has not yet been
really shredded. The Greek election has thrown a spanner in the works of
Brussels because here the citizens have themselves chosen a European political
alternative for which they are geared up. Elsewhere, government representatives
make such decisions as technocrats among themselves and spare public opinion in
their countries from upsetting issues. The compromise negotiations in Brussels
really get bogged down because both sides don’t ascribe blame for the barren
nature of their discussions on the flawed construction of the proceedings and
institutions of the EMU but on the bad behaviour of their partner.

It’s certainly the case that we’re dealing here with the stubborn sticking to a
policy of an austerity programme that not only runs into overwhelming criticism
from international experts but has caused barbaric costs in Greece and has
demonstrably failed here. But, in the basic conflict opposing one side looking
for a change of policy to the other obstinately refusing to engage at all in
political negotiations, a deeper asymmetry is exposed.

Let’s be quite clear about the disgusting, nay scandalous aspect of this
rejection: A compromise collapses not because of a few billion here or there,
not even because of this or that condition, but solely because of the Greek
demand to allow a new start for the economy and a population exploited by a
corrupt elite by agreeing debt forgiveness – or an equivalent regulation, e.g. a
debt moratorium tied to growth.

Instead, the creditors insist upon the acknowledgment of a debt mountain that
the Greek economy will never be able to overcome. Mind you, it goes without
saying that a haircut is unavoidable sooner or later. So the creditors insist
with bad faith on the formal recognition of a debt burden they know is
intolerable. Until recently, they even persisted with the literally fantastic
demand for a primary surplus of more than 4%. This has been cut to a still
unrealistic demand for 1%; but, so far, an agreement upon which the fate of the
European Union depends has failed because of the demand from the creditors to
stick to a fiction.

The weak performance of the Greek government

Of course, the ‘donor countries’ can see political reasons for holding onto this
fiction which allow an unpleasant decision to be put off in the short term. They
fear, for instance, a domino effect in other ‘recipient countries'; and Angela
Merkel cannot be sure of her own majority in the Bundestag. But any wrong policy
must one way or the other be revised in the light of its counterproductive
consequences. On the other hand, you can’t pin the blame for the impasse on just
one side.

I cannot judge if there’s a well-thought-out strategy behind the tactical steps
taken by the Greek government and what is down to political necessities, to
inexperience or the incompetence of the main players. I don’t have enough
knowledge about the widespread practices and societal structures standing in the
way of potential reforms either. But it’s obvious that the House of Wittelsbach
has failed to construct a functioning state.

However that may be, such difficult circumstances don’t explain why the Greek
government itself is making it hard for its supporters to make out any
consistent line behind its erratic behaviour. There’s no sensible effort evident
for building coalitions; one doesn’t know whether the leftist nationalists are
not clinging to a somewhat ethno-centric sense of solidarity and are only
pursuing continued membership of the Eurozone for narrow prudential reasons – or
if their views do go beyond the nation state.

The demand for a haircut as the basso continuo of their negotiations is, either
way, insufficient to arouse confidence on the opposite side that the new
government is different – that it will act more energetically and responsibly
than the clientilist governments that it replaced. Tsipras and Syriza might have
drawn up the reform programme of a left-wing government and thus ‘showcase’ it
to their negotiating partners in Brussels and Berlin. Amartya Sen last month in
Firle, East Sussex, compared the austerity policy pushed through by the federal
German government with a medicine that contains a toxic mixture of antibiotics
and rat poison.

In complete accordance with the Nobel Prize-winner for economics, the left-wing
government might have taken on a Keynesian segregation of the Merkel medicine
and consequentially thrown out all neoliberal impositions; but, at the same
time, they would have had to give credibility to their intentions of carrying
through the overdue modernisation of state and economy, execute a fairer form of
cross subsidies, combat corruption and tax evasion etc. Instead, it resorted to
moralising – to a blame game that worked to the advantage of the German
government in the given circumstances, enabling it to dismiss with neo-German
robustness the wholly justified complaint of Greece about the clever way a line
was drawn (under debts) in the two-plus-four negotiations (of 1990 over German
unification).

The weak performance of the Greek government doesn’t alter the fact of a scandal
that consists in politicians in Brussels and Berlin refusing to meet their
colleagues from Athens as politicians. They indeed do look like politicians but
(until last Monday) only spoke in their economic role as creditors. This
transformation into zombies is intended to give the protracted insolvency of a
state the appearance of a non-political, civil court proceeding.

That makes it all the easier to deny any political co-responsibility. Our press
is making fun about the act of renaming the Troika; it is indeed like a magic
trick. But, with it, there comes the legitimate wish to see emerge the true face
of the politician behind the mask of the creditor. For only as politicians can
these people be held responsible for a fiasco that has played out in massively
ruined life-chances, in joblessness, sickness, social misery and hopelessness.

The scandal within the scandal is constipation

Angela Merkel brought in the IMF from the outset for her dubious rescue moves.
This body is responsible for dysfunctions in the international financial system;
as therapist it takes care of its stability and thus acts in the common interest
of investors, especially of institutional investors. As Troika members, European
institutions also coalesce with this player so that politicians, in so far as
acting in this function, can retreat into the role of untouchable agents acting
strictly according to the rules of the IMF. This dissipation of politics into
market conformity helps to explain the chutzpah with which representatives of
the federal German government, all of them highly moral people, can deny their
political co-responsibility for the disastrous social consequences that they
nevertheless took on board as opinion leaders of the European Council through
the implementation of the neoliberal austerity programmes.

The scandal within the scandal is the constipated manner in which the German
government perceives its leadership role. Germany is indebted for the stimulus
behind the economic recovery from which it still benefits today to the wisdom of
the creditor nations which, in the London Agreement of 1953, wrote off around
half of its debts.

But this is not about moral embarrassment but about the political core of the
matter: The political elites in Europe should no longer hide from their voters
and themselves dodge the alternatives posed to us by an politically incomplete
currency union. It’s the citizens, not the banks, which must retain the final
say in existential questions for Europe.

As regards the post-democratic lulling to sleep of public opinion, the switching
of the press into a therapeutic type of journalism is a contributory factor – as
it marches arm in arm with the political class in caring for the wellbeing of
customers, not citizens.
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