[D66] THE BLACKMAILING OF THE EU ESCALATES

[J.N.]

Stathis Kouvelakis

THE BLACKMAILING OF THE EU ESCALATES
ITS AIM IS TO PROVOKE A BANK RUN AND FORCE THE GREEK GOVERNMENT TO
WITHDRAW THE REFERENDUM

Let's be clear about the possible consequences of the decision of the
Eurogroup to refuse any extension of the "bailout programme" (the terms
are deeply inadequate, I just use them to be understood easily).
Alexis Tsipras had asked for that extension in order to allow the Greek
people to take their decision "free from pressure", that is without the
pressure of a collapse of the banks and of a shortage of liquidity. The
Eurogroup not only rejected that but also to quote the statement it
issued "recalls the significant financial transfers and support provided
to Greece over the last years". Which means, in clearer terms, that
whatever Greece does, it will never the 7,2 billion it was supposed to
get when, under the current programme, the 5th review would be completed.
This withdrawal of all financial transfers also covers the "transfer by
euro area Member States of SMP and ANFA equivalent profits" which means
that the institutions will withhold the profits made out the repayment
of the Greek bonds which are normally returned to the Greek central bank.
But this is not the end of the story: since Greece isn't in any
"programme" from Wednesday onwards, the ECB cannot in principle accept
the bonds of the Greek banks as (discounted) collaterals to provide
Greece with liquidity via the ELA, the only channel of liquidity
provision left since its decision on February the 4th to cut the main
channel. This means that the ECB can at any moment provoke the total
collapse of the Greek banks.
The objective is quite clear, and very political. The Troika wants to
provoke immediately a bank run even before Wednesday and force the Greek
government to withdraw the referendum. This is why all the media, both
national and international, are full of pictures of people queuing in
front of ATMs, grossly exaggerating the situation. Of course, the Greek
government made it clear that it will go ahead whatever the Eurogroup
decides.
The Troika people still haven't got the message. Yes, some folks do want
to get some cash from the ATMs. But the Greek people are fed up being
blackmailed. These decisions will only increase their decisiveness and
their will to fight.