It's raining bonuses!
18/4/12 19:06![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
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talkpoliticsAlthough their country is practically bankrupt and there's a huge hole in the budget, the Greek politicians keep being very generous these days. At least in words. After all, elections are coming and it's time for the nice promises and big gifts to rain again. Clientelism, it seems, something that's become such an inherent feature of the Greek society (and also one of the main reasons for the Greek "mega-drama"), is still very alive and well.
Take the "independent" prime-minister Papademos. He cannot promise his compatriots anything else but more sacrifices and pain: more job cuts, salary cuts and pension slashes - that's what he warned about from the tribune of the parliament last week, and then rammed it through the throats of his compatriots. All of this is possible only for a politician who doesn't expect to be re-elected in May. He's a done deal so he can afford to do it. But the political parties are singing a very different tune. And in the process they're doing their best to halt Papademos's efforts.
The parliament is expected to be dissolved these days, and until then the MPs must prepare the reform plans that's the main condition for the new international rescue package. But more and more often ministers and party fractions are loading the draft bills with demands for amendments that essentially have nothing to do with the laws themselves, but which they insist to shove through urgently, just before the elections.
I'm talking about a form of bribery, i.e. those favors that the parties do to serve various special interests. This clientelism system was in the roots of the debt crisis, but as it seems the Greek politicians haven't learned the lesson.
As has been the case in Greece since time immemorial (and not only there), the parties are overly eager to give pre-election gifts. In most cases the MPs don't even suspect that the laws they vote on are containing particular favors to particular people or groups. Here are two examples showing this paradox in its full glory. A draft bill that was promoted by the minister of transportation is 233 pages long; and another draft bill from the minister of economy even has 900 pages. "I can't read all these documents!!!", was the most frequently heard phrase in parliament. And the MPs have a point.
On the other hand, we can't expect the solution to be contained on a 3 pages like a certain presidential candidate in the US used to promise.
It's no surprise that the European partners and Greece's creditors are feeling increasingly concerned that after the elections the country would betray the austerity course it has promised, for populist reasons. And there's some reason to that concern, because now even some of the heavyweight politicians in Greece are distancing themselves from the efforts of consolidation and reform, for the sake of votes on the coming election.
For instance Antonis Samaras (the leader of the Conservatives) who, not surprisingly, doesn't agree too much with the policies of the prime-minister Papademos, is promising tax cuts to his electorate. In a public memorandum, the Conservatives are speaking of cutting the corporate tax by 1/4 and VAT by 1/6, i.e. bring them to the levels before the crisis. They're also promising to raise the ceiling of the VAT tax break from its current 5000 euros to the pre-crisis level of 12000 euros, and to lower the top tax rate from 45% to 30%. All of these are things that the EU, ECB and IMF vehemently opposed, and said would be disastrous for Greece's plans to answer the requirements for fiscal discipline. The old story is repeating itself, and may the bargaining commence again.
And the Socialists aren't staying away from the wild race for votes, either. Their speaker expressed their desire to form a coalition with the Democratic Left (a new party created by former members of the PASOK party). And that new party is the most vocal opponent of the whole austerity program. And we've seen many examples of ruling parties sacrificing their stated principles and becoming hostages to smaller, more extremist parties, for the sake of preserving their fragile coalitions and clinging to power. Reference: Holland and the disproportionately huge role of the right-wingers.
By the way, amidst protests of all ferry staff last week, we're now seeing the Greek workers in the public sector receiving the Easter bonuses they've gotten so accustomed to. In all fairness though, we have to note the salaries, especially in the public sector, have been cut drastically, and the bonuses along with them. Meanwhile, some even complained that they "didn't receive the WHOLE bonuses, only HALF of them". Wohow. Weird folks.
Take the "independent" prime-minister Papademos. He cannot promise his compatriots anything else but more sacrifices and pain: more job cuts, salary cuts and pension slashes - that's what he warned about from the tribune of the parliament last week, and then rammed it through the throats of his compatriots. All of this is possible only for a politician who doesn't expect to be re-elected in May. He's a done deal so he can afford to do it. But the political parties are singing a very different tune. And in the process they're doing their best to halt Papademos's efforts.
The parliament is expected to be dissolved these days, and until then the MPs must prepare the reform plans that's the main condition for the new international rescue package. But more and more often ministers and party fractions are loading the draft bills with demands for amendments that essentially have nothing to do with the laws themselves, but which they insist to shove through urgently, just before the elections.
I'm talking about a form of bribery, i.e. those favors that the parties do to serve various special interests. This clientelism system was in the roots of the debt crisis, but as it seems the Greek politicians haven't learned the lesson.
As has been the case in Greece since time immemorial (and not only there), the parties are overly eager to give pre-election gifts. In most cases the MPs don't even suspect that the laws they vote on are containing particular favors to particular people or groups. Here are two examples showing this paradox in its full glory. A draft bill that was promoted by the minister of transportation is 233 pages long; and another draft bill from the minister of economy even has 900 pages. "I can't read all these documents!!!", was the most frequently heard phrase in parliament. And the MPs have a point.
On the other hand, we can't expect the solution to be contained on a 3 pages like a certain presidential candidate in the US used to promise.
It's no surprise that the European partners and Greece's creditors are feeling increasingly concerned that after the elections the country would betray the austerity course it has promised, for populist reasons. And there's some reason to that concern, because now even some of the heavyweight politicians in Greece are distancing themselves from the efforts of consolidation and reform, for the sake of votes on the coming election.
For instance Antonis Samaras (the leader of the Conservatives) who, not surprisingly, doesn't agree too much with the policies of the prime-minister Papademos, is promising tax cuts to his electorate. In a public memorandum, the Conservatives are speaking of cutting the corporate tax by 1/4 and VAT by 1/6, i.e. bring them to the levels before the crisis. They're also promising to raise the ceiling of the VAT tax break from its current 5000 euros to the pre-crisis level of 12000 euros, and to lower the top tax rate from 45% to 30%. All of these are things that the EU, ECB and IMF vehemently opposed, and said would be disastrous for Greece's plans to answer the requirements for fiscal discipline. The old story is repeating itself, and may the bargaining commence again.
And the Socialists aren't staying away from the wild race for votes, either. Their speaker expressed their desire to form a coalition with the Democratic Left (a new party created by former members of the PASOK party). And that new party is the most vocal opponent of the whole austerity program. And we've seen many examples of ruling parties sacrificing their stated principles and becoming hostages to smaller, more extremist parties, for the sake of preserving their fragile coalitions and clinging to power. Reference: Holland and the disproportionately huge role of the right-wingers.
By the way, amidst protests of all ferry staff last week, we're now seeing the Greek workers in the public sector receiving the Easter bonuses they've gotten so accustomed to. In all fairness though, we have to note the salaries, especially in the public sector, have been cut drastically, and the bonuses along with them. Meanwhile, some even complained that they "didn't receive the WHOLE bonuses, only HALF of them". Wohow. Weird folks.
(no subject)
Date: 18/4/12 17:00 (UTC)Meanwhile, 70,000 Bulgarians invaded Northern and Central Greece over those 4 days. Good that we're not bothered by crises-shmrises, we could actually save their tourism industry this season, at least partially.
(no subject)
Date: 18/4/12 19:04 (UTC)don't even suspect that the laws they vote on are containing particular favors to particular people or groups.
I'm talking about a form of bribery, i.e. those favors that the parties do to serve various special interests. This clientelism system was in the roots of the debt crisis.
Haven't seen you make a post about the U.S. in a while. Very nice.
(no subject)
Date: 18/4/12 19:08 (UTC)(no subject)
Date: 19/4/12 04:31 (UTC)In the Greek case, since Germans are richer on average than the Greeks, this is redistribution of wealth, aka socialism, and will lead to disaster.
In the US case, since the Chinese are poorer on average than Americans, this is capitalism and is the recipe for prosperity.
(no subject)
Date: 19/4/12 06:24 (UTC)(no subject)
Date: 18/4/12 20:55 (UTC)Ironically, the leftists now have a good chance to snatch the elections, and they seem to indend putting a strike line across the reforms package. And I can see Greece being dropped out of the Euro zone, and the EU further capsulating itself.
(no subject)
Date: 19/4/12 06:33 (UTC)Of course, the protests will go on, alternately demanding more goodies and criticizing the politicians of the previous years who got Greece into so much debt.
(no subject)
Date: 19/4/12 07:12 (UTC)They won't expect that. Eventually they'll scratch off the whole Greek debt, and some guys in the financial sector will have to drink a glass of cold water and move on. The problem is more fundamental, there's a whole culture existing in many societies (mostly around the Mediterranean) that is centuries old, which can't be uprooted just with a magic wand, and certainly not through rescue packages.
The politicians are responsible, but we have to remember that politicians are produced from among the ranks of society. In this sense, every society deserves the politicians it gets, and if it wants to change its policies, first it has to change itself.
(no subject)
Date: 19/4/12 09:59 (UTC)It's the German taxpayers who are the ones buying Greek bonds these days.
Also, the people of Greece have some responsibility for the politicians they elect. If they're only going to elect those who play Santa in the short term at the expense of the long term, they get what they deserve. To some extent, this applies to the people of the US as well... but then I need a new iPad ya see and will vote for anyone who will give me a tax cut to buy one.
(no subject)
Date: 19/4/12 13:32 (UTC)