Let’s Not Be Fooled
"We will defend, as best we can,
the right of all of our people to live with dignity"
By Alexis Tsipras
Prime Minister
Alexis Tsipras’ speech addressing Parliament on the issues
relating to the current negotiation - June 6, 2015 -
Madame President,
Ladies and Gentlemen Members of
Parliament,
I requested today’s meeting
because we are now in the final stretch of the negotiations and simultaneously,
at the most critical juncture.
Therefore, it is necessary to
officially inform the Parliament, to inform the Greek people, regarding the
status of the negotiations and what we’d like to accomplish going forward.
Doing so is in accord with my
democratic responsibility, not only towards the political parties and the
Parliament, but also towards the Greek people.
This is why, from the very start,
I made it clear that in this process we have nothing to hide nor do we hide from
the Greek people.
It is on their behalf that we are
negotiating; on their behalf and with a sense of responsibly that we are
fighting to achieve the best possible deal.
There is nothing, therefore, that
we wish to keep hidden.
Ladies and Gentlemen Members of
Parliament,
From the very start, the new
Greek government made it known that it seeks a European solution to the Greek
problem.
A mutually beneficial agreement
that will disentangle Greek society and the economy from the recessionary spiral
of the last seven years by finally putting an end to austerity, by restoring
social justice and also, by providing a comprehensive solution to the debt
issue.
Such a solution is precisely what
is needed–not just for Greece but for the whole of Europe, to end, once and for
all, the dangerous cycle of crises that started in 2008.
Such a solution would usher in a
new era of European integration, sending a clear message that the EU and the
common currency are part of our permanent history. That the strategy of the
European states that ascribe to this is one, uniform and indivisible.
These are the fundamental goals
that have shaped our positions during the negotiations, both political and
technical.
At the Summits, at the Eurogroup
meetings, in discussions with political leaders and with the heads of the
institutions, and at a technical level, with the so-called Brussels Group.
We actively proved our attitude
and commitment to the European project through the comprehensive proposal that
we submitted last week to the institutions and to the European political
leaders.
Our proposal demonstrated our
sincere attitude for reaching a compromise, as it did not reflect the initial
positions of the Greek government, but the results of the negotiations with the
Brussels Group. In short: the common ground that was reached following three
months of strenuous negotiations. And in this sense, it clearly showed our
respect for the negotiation processes and our counterparts.
So far, this proposal has been
the only realistic basis for discussion in order to achieve an agreement that
respects both the popular mandate of 25th January and the common rules governing
the monetary union.
A key feature of our proposal is
the reduction of primary surpluses, which is something that even the
institutions now accept.
Because high primary surpluses,
which were included in the previous program, only further austerity.
But our proposal constitutes a
basis for discussion—with certain limits.
Meaning, that some of the tough
measures outlined in this proposal that will be binding, will be implemented
only if a single condition is met: that there will an overarching agreement – a
solution for Greece. That the shadow theater of the last five years will not
continue, which only served to worsen the debt situation and the prospects of
exiting the crisis.
Ladies and Gentlemen Members of
Parliament,
Let’s not be fooled:
The crucial element in the
negotiation is not just the reforms required by our partners to conclude the
program. The critical factor is to break the vicious cycle of this crisis. And
this can only be achieved by changing the “recipe” — by terminating tough
austerity that produces recession, and combined with an effective solution for
the sustainability of the debt. Because truth be told, this is the only way that
the Greek economy will once again become safe for investors and markets.
In order for the Greek
government’s entire reform effort to succeed, an effective solution to the
problem of the debt is required.
An effective solution–and not
just a reference to a promise in a decision by the Eurogroup, which never
materialized, as was made in 2012.
Because otherwise, no matter how
hard we try, we will not manage to escape the vicious cycle of uncertainty,
which is the main obstacle to growth for the Greek economy.
And I am confident that no one in
Europe wants to prolong the uncertainty, no one wants to continue to walk the
tightrope of constantly impending danger.
If this is the case, then the
national goal of reaching an agreement cannot have as its primary criterion the
political management of the agreement, but its economic viability.
That is why, on many
occasions, I have emphasized that we do not just need an agreement. We need a
solution. After five years, we need a definitive solution, both for Greece and
for Europe. A solution that will put an end to the policy of unrealistic
surpluses and austerity and which will ensure the sustainability of the Greek
debt.
This is the basic challenge of
the current negotiation as the austerity imposed to ensure the repayment of an
unsustainable debt formed the core of the failed five-year memorandum policy.
And “failure” is not a figure of
speech, but something that is now acknowledged worldwide by the vast majority of
political leaders–and by public opinion. Not only by the Greek people, whose
rejection of these policies is reflected in the results of the recent elections.
But it is also reflected in the debt and social inequality indexes, as well as
in the economy competitiveness indexes, which despite the optimistic forecasts
never recovered under the programs of hard internal devaluation in place during
the past five years.
Ladies and Gentlemen Members of
Parliament,
I must confess, to you and to the
Greek people, that the proposal submitted to me by EC President Juncker, on
behalf of the three institutions, came as an unpleasant surprise.
I would have never imagined that
the institutions would submit a proposal that would not take into account the
common ground reached following the three-month negotiation with the Brussels
Group.
I could not imagine that the
Greek Government’s honest efforts to reach a fair and comprehensive solution
would be perceived by some as a sign of weakness.
Mainly, however,
I could not imagine that the politicians–if not the
technocrats–would believe that after five years of devastating austerity under
the Memorandum, there would be a single Greek MP that would vote in favor of
repealing the EKAS (Pensioners’ Social Solidarity Benefit) for low income
pensioners and for increasing VAT by 10% on electricity.
And if I’m wrong in this
assessment, please speak up.
Unfortunately, the proposals
submitted by the institutions are clearly unrealistic, and are a step backwards
compared with the common ground that was reached with great difficulties during
the negotiations.
The Greek Government cannot,
under any circumstances, agree to irrational suggestions that would permit
whatever would be won by ending austerity through lower surpluses, to be lost to
exhausting measures on low income pensioners and the average Greek family.
And I want to believe that this
proposal was a bad moment for Europe or a bad negotiating tactic, and that those
who came up with it will soon retract it.
Nevertheless, I consider it my
duty, before I make any final decisions concerning the official response to the
institutions, to listen carefully to the views of the parties at this critical
moment for the country.
The main responsibility
obviously belongs to the government, but today I would like to hear the opinions
of the Opposition–if with a sense of patriotic responsibility and honesty, if
they are calling for us to accept the proposal submitted by the three
institutions or if they are also against it.
Because during the negotiations
thus far, you have fiercely criticized us – and of course your criticism is
welcome because it is the essence of democracy – regarding why we will not sign
the agreement.
Now that you know precisely what
we are being asked to sign, I call on you to clarify
whether you accept or reject the proposed agreement.
We are faced with the irrational
proposals of the recent document, which are a bad moment for Europe versus the
realistic proposal of the Greek government, which demonstrates its commitment to
the European ideals held by this country.
I want, at this point, to remind
all of you that since coming to power, we have met external commitments of
approximately 7.5 billion Euro despite the financial asphyxiation chosen as a
negotiating tactic by the institutions.
I want to further remind you that
since June 2014, no instalment has been paid from the Program; also, since
February 18th a constraint by the ECB has been in force regarding issuing
Treasury bills–a constraint that has no legal basis since the validity of the
loan agreement has been extended and the country is in a negotiation process
within the Program.
This is no longer merely a legal
issue, nor only a political issue. The financial asphyxiation of the country is
now a moral issue, as well—and it conflicts with the basic, founding principles
of Europe. An issue that raises legitimate questions about the future of Europe
itself.
And I’m certain that there
aren’t many people in Europe who feel proud about this tactic. It is therefore
time for all to prove, both in Greece – but mainly in Europe – that they are
working towards finding a solution and not to subjugate and humiliate an entire
country. Because if they are working to humiliate or to subjugate, they should
realize that they will produce the very opposite results.
And this is not a threat but a
simple observation that doesn’t require studying opinion polls in order to
understand it.
One just needs to talk to the
people, in every city and village, in every workplace, in every community, among
older and younger Greeks, who anxiously discuss the developments and ask one
thing from us:
Not to retreat from our just
demands. Not to succumb to unreasonable demands or extortion from the creditors.
Ladies and Gentlemen Members of
Parliament, You will ask me, and perhaps rightly so: Taking into consideration
all of the above are we, ultimately, close to a viable agreement? I will answer
honestly: Despite the serious setback two days ago, it is my belief that we are
now closer than ever to an agreement, and I will explain why.
First, because it is now evident
in European– and international– public opinion that the Greek side has proposed
a realistic framework for a solution that does not treat the expectations of the
partners, rules governing the monetary union, or public opinion in the countries
of other members, with intransigence and indifference.
Second – and perhaps more
importantly – because, despite the expectations to the contrary and the adverse
conditions in recent months, we have managed to endure.
We’ve insisted and managed to
negotiate steadfastly and safely on behalf of the Greek people. And now,
following yesterday’s decision by the IMF to bundle the payments for the end of
the month, it is now clear to all, understood and
anticipated by all—including the markets—that no one wants a breakdown. And time
is not only running out for us. It is running out for everyone.
Therefore, certain individuals
should not rush to prematurely predict developments, to draw conclusions.
The realistic approach of the
Greek side is the only serious negotiating approach to reach a sustainable
agreement.
And as it becomes abundantly
clear that the Greek issue is not limited to Greece but rather is a matter that
concerns the entire Eurozone and its future, as well as the global economy, the
chances will grow that our partners will accede to the realism and realistic
positions submitted by the Greek side.
Ladies and Gentlemen Members of
Parliament, in closing, I would like to summarize the strategic objectives of
the Greek government in the ongoing negotiations:
- Low primary surpluses, which have already been accepted
and have already reduced the cost, the bill for the Greek people by 8 bn.
Euro for the next year and a half, and by 14 bn. Euro within five years.
- Haircut – restructuring of the debt.
- Protection of pensions and real wages.
- Redistribution of income in favor of the social majority.
Because, of course, there will need to be an increase in revenue. The
critical issue will be who will continue shouldering the burden–the low and
middle-income earners or those with high incomes? Those who during the last
five years did not contribute their fair share, those who did not
participate in paying the bill of the crisis must be held accountable.
- Reinstatement of collective bargaining and the reversal
of deregulated labor relations, which in our opinion, was a key ideology of
the Memorandum policy. I can inform you that, based on our consultation with
the ILO, [International Labour Organisation], which is at an advanced stage,
we will present the final proposal in the coming days. It will be introduced
and enacted in the Greek Parliament, which is sovereign and will legislate
the restoration of the country’s collective agreements.
- A strong investment program that will create a positive
jolt to the Greek economy by mobilizing its stagnant potential.
These six principal points are
the elements that govern—and summarize–the nature of a desired agreement, one
that will be economically viable and socially just. Our efforts, obviously, will
be judged by the results. And the results will obviously be more positive, if
the will of the Greek people to support the national negotiating line, the
tremendous effort of the Greek government for a just and viable solution, is
strong.
But it is certain that in the
coming days, as we enter the final stretch, there will be a lot of loose talk.
We need composure, prudence,
wisdom, social and political support to achieve the national objective for the
best possible result.
And now is the time for everyone
to demonstrate responsibility. Primarily, of course, the government but also the
other parties.
Including, the Opposition.
I urge you to fully support the
national effort by setting aside, during these critical moments, self-interest
and alarmist rhetoric.
Finally, I want to reassure the
Greek people that they should be proud of this effort and they should be calm.
Proud, because the Greek government will not bow to unreasonable demands. And
calm, because our patience and our perseverance while
negotiating, our endurance, will soon bear fruit. We will defend, as best we
can, the right of all of our people to live with dignity, but above all, to live
in conditions that will allow for a future of prosperity, progress, hope and
optimism.
And I am confident that we will
succeed.
Thank you.
See also -
http://www.primeminister.gov.gr/english/