Anna Diamantopoulou Blog

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A famous quote is attributed to Antonio Gramsci, ancient leader of the Italian Communist Party: “The Old is dead. The new cannot be born. This is the age of monsters”.

For many, Greece’s “age of monsters” began with the result of its recent elections on the 6th of May which saw the electoral collapse of the two main Greek parties – the Socialists and the Conservatives, the entry of the “Golden Dawn” Neo-Nazi party in Parliament and the significant rise of the Radical Left SYRIZA party to the second spot. The inability of the parties to form a viable coalition, especially due to the unwillingness of the radical left, led to new elections that are planned take place on the 17th of June.

However, it is important to properly understand what led to this electoral balkanization.

A short answer is that, in effect, Germany chose to forsake its own past. The Treaty of Versailles, ratified after the end of World War I in 1919 created a dynamic that produced recession, hyperinflation and political instability for the main losing party, Germany. The treaty carried within it the seeds of its own undoing and effectively led to the rise of National Socialism in 1933. After the end of World War II the lesson from the Versailles Treaty was very clear for the Allies. The Marshall Plan, conceived by the American government, led to the reconstruction of Europe and in a matter of decades, Germany was, once more, the locomotive of European growth.

Capital Vision Speech

At a conference “Capital + Vision” on the topic of “The development of the Greek economy : when and how?” , held in Athens on Sept.29, former European Commissioner Anna Diamantopoulou, proposed a particular initiative by the European Council. She said:

The crisis of public dept soon turned into a threat of exclusion of Greece from the euro and lead to o question of existence for the Eurozone.

The European leadership faced with the dilemma “unification or break up”, seems to have decided on “economic and political unity” , after all the recent decisions at European level.

We need to put an end to all threats and statements, at different levels, on the exclusion of Greece from the euro. As long as this scaremorgening is continued, there is no chance for economic recovery, no chance for development, even if all the upcoming austerity measures are imposed and fully accepted.

It will be impossible to attract foreign investment, non feasible any small or major internal investment. There will hardly be any interest for the return of money deposits to the greek Banks,

It is necessary, I believe, that the Greek government – with the support of all Greek political parties and the European parties to which they belong – should ask that the Conclusions of the upcoming European Summit confirm its will to defend the cohesion of the Eurozone and its integrity, that is confirm that all eurozone countries will stay with the euro , according to the EU treaties and the interests of the people of the European Monetary Union. In simple terms, the European Council should make absolutely clear to all concerned that no country will leave the Euro…”

After fully analyzing the overall situation in the Greek economy and making her proposals on what she considers necessary for the greek government to do,   Ms Diamantopoulou added in her closing statement on the particular issue:

Growth about which everyone talks in Greece and Europe, needs a “proper climate” and “money”. To attract private capital and eventually public borrowing we need to achieve a “climate” of stability both in terms of internal political conditions in Greece and in terms of our currency.

No one does business if he is not sure which currency he will be dealing in. To put now, an end to all the uncertainty on the Euro and its future, the European Summit must affirm in an unequivocal and convincing manner that there is no way back to the Drachma, the Deutschmark or the Italian Lira. Bargaining on the Greek adjustment program, perished before seeing daylight and the extension of its implementation is irrelevant without a firm decision on the support of the Euro.

Anna Diamantopoulou, 2012. Content is distributed with a CC A-NC-ND-Gr-3.0 licence

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