Interview: Greek Bailout Saved Bankers, But Punished the People

Published on teleSUR, by gf-LB, June 30, 2015.

As Greece prepares for a referendum on further austerity proposals, teleSUR explores the legitimacy of the Greek debt.

The tens of billions in bailout funds provided to Greece, rescued the finance sector, a member of the Greek Debt Truth Commission has teleSUr in an exclusive interview: “It had one core aim, it was to bailout the private German and French and Greek banks, amongst other European banks”, Turkish economist Ozlem Onaran told teleSUR, who served as part of the Greek debt truth commission.  

As Onaran explains, most of the bailout plans were designed to help the private banking system and not the Greek government or its people. In fact, almost all of the funds which Greece borrowed ended up in banks, and a small percentage actually went to the government. “If you look at the total of the funds…only about 10 percent went into the government’s budget” … //

… What comes next?

As the Greek economy enters into default mode, it is unclear what would be the next step for Athens to avoid the crisis becoming even greater. “A referendum can open better options for the Greek government…the Greek government still has options,” explains Onaram.

According to the economist, the Eurogroup has used Greece’s example to send a political message to all the member countries. But it is also seeking to punish Athens for trying to defy the pro-austerity consensus. If the Eurogroup fails to keep up its position, it would give in to the first anti-austerity government in the region, unleashing the possibility of other countries electing left-leaning parties.

Will Greece leave the eurozone? Onaram believes that such a measure would not be taken immediately, and that the EU is divided on its position regarding Greece, with countries like France pushing for renewed negotiations: “Its up to how long the Greek government can continue the negotiations and up to what the European governments want to do,” she concludes.

(full interview text).

Greece Related Links:

Other Links:

China ratifies the creation of BRICS bank, on Russia Today RT, July 1, 2015;

Vulnerable women shouldn’t have to get arrested to get support, on Left Foot Forward, by Rob Preece, July 1, 2015: Two in five women sent to prison in a single year will be unconvicted;

It’s time to put integration back on the agenda, on Left Foot Forward, by Ben Gidley, June 30, 2015: Restrictive conditions have made it harder for those legally resident to commit to British society;

International NGO: Human Dignity and Humiliation Studies (HumanDHS): /Homepage; /Who we are; /News; /Conferences; /Online Publications; /Online Contact; NGO: Nouvelle Planè

Video: Why I believe the mistreatment of women is the number one human rights abuse, 16.36 min, on TED, by Jimmy Carter, filmed May 2015: /Subtitles and Transcript – Find Jimmy Carter: on White House; on en.wikipedia, /See also, /External Links; on on YouTube-search; and on Google Web-search.

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