Lack of trust in Greek government fuelling popular protests

Greek government radical new approach to economic growth pays off, originally uploaded by Teacher Dude's BBQ.

With virtually every economic indicator in Greece showing an ever worsening situation the ruling PASOK administration and its supporters in the media have been desperately trying to convince Greeks that the worst is already over. With phrases such as the "light at the end of the tunnels" and the "first green shoots of recovery" prime minister Giorgos Papandreou has been embarking on a concerted campaign of turning around public perceptions.

With this in mind Athens has been announcing new measures to promote development on an almost daily basis with ministers hoping that people will be convinced to accept the massive cuts in spending that have crippled the economy not just in Greece but Ireland and Portugal as well.

However, the grandiose policies being promoted so assiduously in the media are as real as the phantom armies Hitler ordered to counter attack the Red Army as it surrounded Berlin. Hunkered down in his bunker the nazi leader sent units that existed only on paper to counter the Russian divisions closing in on the Reichstag.

Similarly, a beleagured Papandreou and cabinet members have been promising large scale projects for education, economic and ecological devlopment , yet for which the funding simply doesn't exist except on the pages of glossy PR handouts.Case in point being last month's ambitious life long learning project with an estimated 2.4 billion euro budget. This at a time when the country is being obliged to close or merge nearly 2000 schools and hundreds of others are without heating due to unpaid fuel bills.

As time goes on the gap between the reality of everyday life for most Greeks and the optimistic pronouncements of the government drift ever further apart.Just as the downgrading of Greece's credit rating by both Moodys and Standard and Poor's reveals the money markets lack of faith in Athens to deliver what it has been promising so Papandreou's lack of credibility at home is becoming ever moe apparent in the opinion poll figures that show support for his PASOK party at historically low levels.


A seemingly endless list of broken promises, botched polices and an ever present stench of corruption have made the vast majority of voter wary of any promise made by government officials. This lack of faith means that most negotiations between ministers and groups such as trade unions, business leaders and others become infinitely more difficult as few believe that the government will keep its word and whenever the country's creditors decide to impose yet more austerity measures any agreement will be void.

Such lack of faith is stiffening resistance to any kind of change proposed by officials leading many to believe that only a show of force in the form of strikes or street protests will stop PASOK from reneging on deals.

Is Greece the next Egypt?

It seems that Greek farmers are getting ready to protest following the break down of talks with the government. If this does take place then they will become yet another group that has decided that the only way Athens will listen to their demands is to take action and in the case of the farmers this usually means blocking highways.

More and more employees are refusing to buckle down and accept the bitter medicine prescribed by the IMF, European Central Bank and the EU. Doctors are currently on strike and have been occupying the Ministry Of Health offices, public transport employees in Athens are continuing their strikes, teachers and chemists are also following the same route. Whilst the protest movement against massive price hikes in road tolls and bus ticket prices grows ever stronger and despite villification in the mainstream press remain popular.

On the other hand the ruling PASOK party has been reduced to fighting this growing tide of civil disobedience with a mixture of police crackdowns and slurs which are dutifully repeated and amplified by pro - government TV stations in their news bulletins. The reality, however,  is that support for Giorgos Papandreou is at an all time low and the loathing that ordinary Greeks feel for their politicans is so intense that PASOK cabinet members travel only under conditions of strictest security whereby itineries are often not announced till the last minute and public apperances are almost impossible unless those present are carefully vetted. Even then they are accompanied by hundreds of the quasi - military riot squad, known as the MAT in Greek.

While both PASOK and New Democracy parties have once more swept the Siemens and Vatpoedi corruption scandals under the carpet they insist that many of the protests are illegal and that the law should be applied. One can't be helpthink that if that were the case a large portion of Parliament would either be in prison or in exile with Tunisia's Ben Ali.

There is such a huge disconnect between rulers and ruled in Greece that I wouldn't rule out Egyptian style mass demonstrations  before the year is out. In both cases corruption, nepotism and incompetence can no longer be tolerated by people whose living standards are being depressed by those who live in the lap of luxury. It is a bitter irony that Greek MPs whose income is often more than 10,000 euros a month are demanding those who do not earn that in a year make sacrifices in the name of competiveness.How long this massive inequalities can be sustained is a matter of debate and given the intense feeling of anger and disappointment it is very hard not to see Greece as parched forest in which just one spark will set off a wildfire which will quickly rage out of control..

Fire next time - Greece on the edge

With 2011 underway there seems little in the way of good news to cheer most Greeks. Repeated increases in VAT, road tolls, ulitility and fuel bills, public transport combined with spiralling unemployment and shrinking wages have made people both angry and weary. The list of social and economic changes being pushed through parliament by the ruling PASOK government has left voters dazed.

Yet as anyone who has ever lived here knows the difference between the political leadership announcing policy changes and those actually being implemented is often huge and in many cases such reforms end up being ignored. On the other hand the massive increases in indirect taxation on basic goods and services are having a real effect on lower income groups who are being pummelled financially to such a degree that many are no longer able to pay basic bills such as electricity and phone.

I predict however, that in the next few months the sense of numbness and helplessness that Greeks feel at the speed and scope of the changes wears off there is going to be a massive groundswell of resistance against the government. Already the first signs are apparent,  it is estimated that 20% of road users are now refusing to pay motorway tolls and despite government officials promises to clamp down that figure is set to rise as non-payment becomes more widely percieved as an act of resistance rather than just a way of saving money.

Indeed the threats by PASOK officials to come down hard to offenders is another sign of the weakness the government has in putting into action promises made to the country's creditors. It's almost a law of nature that whenever Athens announces the latest harsh punishment for tax evasionand other violations the amount of revenue collected drops. In the absence of a reliable tax system politicians are reduced to making ever more grandiose threats of punishment, knowing full well that the are likely to be ignored.

In its quest for tax euros the Greek state has been forced to adopt tactics that sound like a page out of the Sheriff of Nottingham's playbook. Grab whatever you can from whoever you can. In such a chaotic situation non-payment of tax and other obligations makes everyone feel a little like Robin Hood rather than an errant knave.

Which support for government at an all - time low Athens is using the police force more and more to deal with the fallout from its reforms, a policy that is fraught with risk and the potential for re-igniting the large scale violence that Greece witnessed in December 2008 when a 15 year old was shot by a police officer. Already the Keratea region in Attica has been the centre of widespread and violent clashes between inhabitants and police for over three weeks. Villagers in Ovriokastro have fought standing battles, blocked roads,beseiged the local police station and set fire to patrol cars in an effort to block the construction of a rubbish dump in the area. In reply riot police units have repeatedly employed tear gas, plastic bullets and water canon in an attempt to allow building to go ahead.

It is just a matter of time before another such clash between protesters and police in another, more urban part of Greece acts as a spark to set off wider confrontations between Greeks at the end of their tether and the authorities. Unlike 2008 though the spectrum of those unhappy with the status quo is much wider and the stakes much greater. The issues are no longer better wages and jobs but survival as money starts running out for whole families and those without work become ever more desperate.

Prime minister Giorgos Papandreou may cut a convincing figure on the international stage while in Brussels, Washington or Berlin but his ability to convince fellow countrymen to accept painful changes is dropping rapidy and he is faced with a hostile population that would quite happily lynch many member of the government given half a chance. The savage beating by marchers of ex-minister Kostas Hatzikdakis before Christmas was widely seen as an attack of the whole political set up rather than just a single politicians. With the social contract in tatters and the authorities relying more on force to get things done the potential for serious social disruption is growing exponentially.

Unlike the monetarist policies implemented by Margaret Thatcher and Ronald Reagan in the early 80's there is no widespread support from any sector of Greek society for the changes which are seen as unfair and deeply destructive. Whereas Thatcher could rely upon electoral support of Southern England and large sections of the working class, disgruntled with the Labour party Giorgos Papandreou's PASOK has no such mandate and has alienated virtually all the party's natural allies since taking power in 2009. What is left is spin which is propagated by a suppine local media and blunt police force, a recipe for instability as at some point neither will be sufficient to contain the growing sense of unjustice over what is happening to the Greek economy.

Merry Christmas Mr Papandreou

Greek protesters Vs riot police - Thessaloniki, Greece, originally uploaded by Teacher Dude's BBQ.

As I write this Greece is getting ready to celebrate the Christmas season and as might be expected the central shopping areas are full of stores sporting decorations. Yet behind the festive fascade the reality of the situation is that this is going to be one of the worst Christmases in decades. With over 2 million Greeks (in a nation of 11 million) living below the poverty line and unemployment rising remorselessly many have little to feel merry about.

To make things even worse the current package of austerity measures has yet to take full effect, promising to make 2011 even more difficult than the year about to end and in this climate of uncertainty people feel angry and afraid. They are deeply outraged with their political rulers who once again have led the country into crisis, though in this case on a scale unprecedented in modern greek history.

Ex - government minister Kostis Hatzidakis was on the receiving end of popular outrage during last week's demonstration outside parliament and was beaten by an enraged mob who pursued him and his police guards lashing out with a level of violence not witnessed in decades.

However, as many Greek commentators have argued the target of the mob's rage was not Hatzidakis himself but rather the political system in general which is currently in a state of crisis, a victim of the massive economic cuts being imposed by Greece's creditors in return for the 110 billion euro bailout package.

Following prime minister's Giorgos Papandreou's second policy u - turn since gaining power in Septemer 2009 voters are feeling betrayed by their leaders who swore in pre - election campaigns that there would be no further cuts in wages and then within weeks slashed pay and lowered the mimimum wage.

Greeks have long since ceased to believe the endless stream of statements from government spokesmen talking up suggestions that the economy will round a corner in the coming year as they have been lied to far too often for such ideas to be given much credence. Giorgos Papandreou has burnt through virtually all his political capital in less than 14 months, a feat unprecedented even in Greek politics and all that is left are a series of PR moves that convince an ever dwindling segment of the electorate.

Last night the Greek parliament passed the 2011 budget which will see swingeing cuts in public spending and promises little or no help to the country's poor. For them the coming year is set to be a bare knuckle fight for survival in which many will be given no assistance at all by the state. Already here in Thessaloniki the signs of the coming social crisis are evident with pensioners rooting through rubbish bins and every set of traffic lights manned by beggers. On the other hand coaches full of riot police are now a permanent fixture in the centre, a vivid reminder of the threat of a resurgence of the violence that swept the nation in 2008.

The danger is that with a political system so compromised by its rich history of corruption and incompetence Greeks will turn their back on the present set up and seek solutions elsewhere. Already many MP's, especially members of the ruling socialist PASOK party are worried aout the reception they will receive back in their constituencies over the Christmas break.

The fact that despite days of intense political confrontation within PASOK over the budget not one of their MPs voted against it is likely to lower even further voters opinion of their parliamentary representatives and raise questions about just how democratic a country Greece is.

When the party leadsership can ride roughshod over backbenchers and introduce legislation that the vast majority of voters do not support then what exactly is the role of parliament in representing the popular will?

However, in Greece, more than most European countries the political arena is not just limited to parliament and passing a law is not the same as making it a reality.

Greece and the Neo - Orwellians

 

"And if all others accepted the lie which the Party imposed—if all records told the same tale—then the lie passed into history and became truth."

Unlike the pontiffs of old Greek prime minister Giorgos Papandreou seems able to be an unlikely follower of the dogma of papal infallibility in which a move from one theological/ideological position to its exact opposite can be achieved without having erred in either case. On 23rd May Papandreou stated categorically to El Pais that Athens would not ask for its mountain of debt to be restructured, a position he repeated in a BBC interview in September and on 16th November to El Figaro, going so far as to say such a move would be a "disaster for Greeks".

Yet just last week the IMF/EU/ECB decided to extend the payment schedule for Greece's bailout out package from five to 11 years and this is now being hailed by the government and much of the media as a kiss of life for the country. It's interesting to see how the state run channels and pro-government TV stations such as MEGA, Skai and Antenna have promoted this latest change of heart without the slightest reference to previous government statements which held that such policies were not in the nation's interest.

In a repelling way it is fascinating to see how the ideas George Orwell espoused in 1984 are still revelent is a seemingly democratic regime with a free press. The truth, however, is the press in Greece is neither free nor independent but rather beholden to powerful political and economic interests which limit the parameters of what is acceptable in terms of political discussion. One only has to compare the rough ride given Ireland's ruling politicians following their bailout with the servile treatment of their Greek counterparts by local media. In many repects its hard to tell the difference between the official government line and that taken by the reporters who are covering domestic political matters.

The reality of the matter is that the press have sided with those in power in the hope of persuading ordinary Greeks that the massive social and economic dislocation they are suffering is inevitable and that any possible protests against PASOK's austerity measures are futile and anti-productive. This may, indeed by the case, but the stiffling of free and open debate about the options Greece has in the face of the current economic crisis is both dangerous and short sighted as it is steadily undermining respect for the government and democratic institutions in general.

The Machine is dead. Long live the Machine. Is it the end of business as usual in Greek politics?

Greece's political machine grinds to a halt, originally uploaded by Teacher Dude's BBQ.

For the best part of four decades the two major parties in Greece have relied upon their ability to provide jobs in the public sector as a means of winning public support and elections. For many “a place in the sun” as a civil service job is called in Greece has been a powerful motivator since such positions offer far more security, better pay and conditions than in the private sector where low wages and flagrant abuse of labour legislation are now the norm.

In the past when the economy was growing at rates that made Athens the toast of the European Union Greek governments were happy to ignore such abuses as employees could easily find work elsewhere and the State could easily fund the ever growing number of people on the public payroll. However, with access to cheap credit seemingly at an end and the IMF and EU breathing down its neck for cuts the country is about to undergo radical changes that will not only alter the nature of its economy but also the relationship between rulers and ruled.

Greece's creditors are insisting on a massive reduction in the size of the state and in particular has demanded that for every new hiring, five public sector workers leave. Given the size of the civil service in relation to the rest of the economy this involves a severe jolt to the labour market and is likely to lead to even higher unemployment as the private sector is also shrinking at an unprecedented rate and will not be able to absorb the tens of thousands of new job seekers. This, in turn will push down wages and purchasing power for those employed so further worsening the government's economic position as more businesses close and tax revenues plummet.

In the long term the inability of the ruling party to offer incentives to its supporters in the form of jobs will lead to a breakdown in the network of patron – client relations which is the lifeblood of the modern Greek political system. Whether nominally socialist or conservative the two largest parties, PASOK and New Democracy which have dominated parliament since 1974 have regularly used power to reward followers with state jobs.

While the leader of the right wing New Democracy, Kostas Karamanlis may have promised to reform the state and cut public spending his party followed the internal logic of the system and added employees to the public payroll on an unprecedented scale.

Similarly, while the socialist PASOK vowed to improve public services the reality was that while those working in the education and health rose steadily the quality of services offered dropped to the point that whilst the country had one of the worst school systems in Europe it employs four times the number of educators working in Finland, home to the world's highest ranking schools .

At first glance such moves may seem contradictory but they fit in perfectly with the logic of a political caste that despite marching under different ideological flags differ little in terms of day to day policy. The job of the ruler is to stay in power and once you understand that and leave aside political lablels everything else starts to make sense. If you cannot reward followers then the well oiled party machinery that can deliver votes quickly starts to break down.

The problem is that there are no longer jobs or contracts to hand out. The insistence of the IMF/EU/ECB troika has seen to that by standing tough despite Papandreou's claims that the new austerity measures will not lead to more civil service job losses. However, this hasn't stopped PASOK, state run TV channels and the government's supporters in the media in general from pushing the line that some will still be hired.

In the recent vote the PASOK candidate for the position of Mayor in Thessaloniki, Greece's second largest city committed himself to creating 50,000 new jobs. This at a time when Papandreou has been forced to cut 40,000 places. Even then the government NET news spoke of 8,000 new openings but failed to mention  that any “new” positions created will, in fact be filled by people transferring from other sectors of the civil service.

As the reality of the situation filters down you are likely to see a fragmentation of the party political scene as party members and functionaries jump ship either to join other parties or quit politics all together. The record low turn out in the latest local elections is just a symptom of this sea change in public life and is likely to intensify as the crisis worsens as Athens sits by on the sidelines unable to influence an economic policy decided upon in Brussels, Frankfurt and Washington.

Already Dora Bakoyianni, who was until last year a contender for the leadership of New Democracy has created a new party with the aim of challenging her former colleagues for the centre right vote. Such moves are likely to be replicated in PASOK if MPs and cabinet ministers fall out with the leadership or see that the party is doomed at the polls.

Does this means that the political scene is about to change for good? Probably not in the short term if the tactics and strategies displayed during November's local elections are anything to go by. Too many of the major parties' nomenclature are wedded to the present sysytem which has brought them power and personal wealth for decades to give it up without a fight. Instead they will keep on down the same road but with fewer and fewer resources to back up their promises. In the place of a corrupt, mismanaged political system which costs hundreds of billions you will have a corrupt, mismanged one that runs on far less money.

Greek authorities take no chances on the eve of Polytechniou Day

Riot police break up protest march in Thessaloniki, Greece, originally uploaded by Teacher Dude's BBQ.

It seems that the Greek nation has finally accepted the inevitable and got on board with the austerity package demanded by the country's creditors. It must be true since the prime minister, Giorgos Papandreou said so during his speech after the results of Sundays local elections. So did IMF head Dominique Strauss Kahn in an interview on French radio when he said that the victory of the ruling PASOk party showed that Greek had understood the need for change.

What both leaders choose to ignore was the enormous drop in turnout by Greek voters, in some cases 50% less than in previous elections in 2006 and the growing dislocation between the country's ruled and rulers. While both major parties made some gains the overall trend is one of ever intensifying disenchantment with the current political system. Less an endorsment of the country's politicians than an understanding that the country no longer controls its destiny, no matter which party is nominally in charge.

Tomorrow marks the 37th anniversary of the Polytechnic uprising which set in motion a chain of events that led to the overthrow of the military dictatorship that had siezed power in 1967. Every year students and others march in Greece's major cities in commemoration of those who died to restore freedom and democracy. The day is often used as a platform by political groups to demonstrate against unpopular government policies. This year's anniversary is likely to repeat this tradition and the presence of 7000 additional police officers in the centre of the capital is testiment to how worried the government is about the marches turning into something more violent.

Already there have been clashes in Athens between youths and the police around the university of Athens campus the scene of many of the violent confrontations during the 2008 uprising which caused billions of euros worth of damage.

Polytechniou day as it is known in Greece will prove to be an acid test over whether young Greeks in particular have accepted the massive cuts in public spending and job losses proposed by the European Union, European Central Bank and IMF.

Given the anger and frustration felt by much of the population over the continued economic crisis there is a very real possibility that a miscalculation by the authorities could have drastic consequences.

For more on last year's 17th November events click here.

In Greek elections everyone's a winner

Election night - Thessaloniki, Greece, originally uploaded by Teacher Dude's BBQ.

After weeks of campaigning, the first round of the Greek local elections is over and it seems the world's money markets are breathing a sigh of relief that the ruling PASOK government has decided not to hold early national elections. Normally, Wall Street, The City and the Frankfurt DAX pay little attention to the small time Hellenic politics but this time prime minister Giorgos Papandreou embarked on a game of high stakes poker and repeatedly declared that a crushing defeat for his party on Sunday would mean a new round of parliamentary elections, perhaps as soon as December. The election campaign quickly transformed from being a debate on mundane local issues such as how often garbage get collected and assumed the dimensions of a referendum on how the Greek government was dealing with its dire financial crisis.

The news, which was quickly labelled political blackmail by his political opponents sent the cost of Greek government borrowing on the world's financial markets through the roof with CDS's topping 900 points. A reaction that reinforced Papandreou's claim that if voters did not support PASOK candidates the alternative would be financial disaster and political chaos.

Whether the high stakes bluff really prevented an all out electoral rout for PASOK is debatable with polls showing that 2/3 of Greeks rejecting the PM's dilemma. However, the use of such dramatic tactics so early on in the current administration's term is indicative of the massive drop in support for the government and growing dissatifaction with the austerity measures which have hit middle and working classes especially hard. Evidence of the effects of the economic crisis can be seen everywhere from a thousands of closed businesses to the growing number of homeless begging in the streets.

Many families are struggling even to pay utility bills as witnessed by recent statistics published in the Greek press which show that 1 in 4 electricity bills have gone unpaid. In addition the country's largest telecom provider OTE reported that half a million bills are overdue.

The announcement of yesterday's results was greeted by all parties as a victory with Giorgos Papandreou announcing that it showed that the country was behind his government's attempts to save Greece from bankruptcy and so ruling out new elections. Antonis Samaras, the leader of the largest opposition party New Democracy hailed the vote as an endorsement of his party's anti – Memorandum stance. Aleka Papariga, leader of the Greek Communist Party noted that her party was the only won to increase its share of the vote .

Although the Left benefitted somewhat from the anti – PASOK protest vote it failed to make enough headway to upset the political status quo, similarly, the far Right LAOS party who at one point seemed poised to supplant the more mainstream New Democracy in opposition paid the price for its support of the government's measures.

However, the fact that so many Greeks choose not to vote has worried many political commentators. That voter turn out was at a historical low reflected the disgust and antipathy many feels for the political choices on offer. Amongst ordinary people there is a growing sense of dissafection with the two major political parties and families who have dominated Greek politics since the restoration of democracy in 1974.

In the capital, Athens turn out was especially low with nearly 60% choosing not to vote, a figure that is nearer 70% if spoilt and unmarked ballots are included. After a succession of governments on the right and the left promising and failing to reform Greece's underperforming state, fight corruption and bring development only party die hards remain convinced that those in power can bring about the much needed changes required if the country is to survive in 21st century.

Feeling betrayed and angry with the “politics as usual” attaitude of the larger parties some voters, especially in Athens have turned to more extreme alternatives. The neo – nazi Golden dawn party received over 5% of the vote in the capital as a whole though in some districts the figure was over 20% guaranteeing them a seat on the Athens municipal council

ΜΗΝ ΑΝΗΣΥΧΕΙΤΕ! Είναι η μεγάλη μας ευκαιρία να κάνουμε όλες τις αλλαγές για την Ελλάδα

"DON'T WORRY - This is our great opportunity to change Greece"

Greek prime minister - Giorgos Papandreou

Will Greece go to the polls in December? The elections no one wants to win.

Greek elections 2007, originally uploaded by Teacher Dude's BBQ.

In contrast to previous years the run up to the local elections in November is a lacklustre affair without the usual frenzy of electioneering that marks Greek politics. In the streets few people are particularly riveted by the choices on offer and despite a concerted effort by the media to inject drama into the event many have turned their back on politicians, and instead are concerned with more immediate worries such as paying the bills and making ends meet.

No one in the present political set up, either on the left or the right set up has been able to turn an intense feeling of voter dissatisfaction into concrete electoral support. Obviously, the great loser in all this is the centre left PASOK party led by prime minister Giorgos Papandreou whose popularity has nose dived in the wake of the austerity measures imposed at the behest of the EU, ECB, IMF troika. However, the main opposition party, the conservative New Democracy has been unable to made much headway in the polls tainted as they are by their role in the country's economic meltdown. Even their newly elected leader Antonis Samaras's populist rhetoric has failed to convince many other than the party faithful.

On the other hand smaller parties of the left and right of the two main parties are also struggling to generate voter interest. On the far right LAOS, led by Giorgos Karatzaferis has failed to poach votes from New Democracy in the numbers it was expecting, the result, in part of its parliamentary support of the PASOK in passing the legislation and measures demanded by Greece's lenders.

Nor is the picture much better on the left with people wary of the Greek Communist party's old school ideological stance and its unwavering allegiance to the state run socialist economic model favoured by the Soviet Union in its heyday. The other reformist left wing coalitions languish in the polls, internally divided and struggling to get their message across in the media.

Underlying the growing indifference of Greek voters to the choices on offer is the realisations that whoever is in power their ability to change the present economic climate is limited as virtually all major economic decisions taken have to be okayed in Brussels, Strasburg and Washington. In addition an even deeper feeling of distrust of those in power comes from the deeply rooted idea that the country's rules are above the law and so free to abuse their position. This is hardly a new innovation and one that is central to modern Greek mindset but what has changed is the fact that the political caste's greed and incompetence has brought the nation to the edge of the abyss and so is no longer considered the acceptable price of getting things done.

Such extreme notions are reinforced by parliament's handling of recent corruption and bribery scandals involving the cases such asVatopedi Monestary, Siemens and the 2004 Athens Olympic games. These are just a few of the dozens of scandals that have racked Athens over the last few years and yet despite endless investigations not one politician has been convicted of a single misdemeanor, let alone spent time in jail. Many ordinary Greeks have come to the conclusion that whoever is in power, nothing will change and that once in charge the first priority of politicians is to line their own and their family's pockets at the expense of everyone else.

Given such cynicism and anger political analysts and leaders both left and right are worried about how this backlash will effect the vote in November and how the political landscape will be changed. Already the prime minister has warned that a major defeat for his party may result in the country going the polls again in a round new parliamentary elections. The national daily, Nea also published reports that Papandreou is considering a snap election as soon as December 12th in such an eventuality.

For Papandreou and many others the November elections are in reality a referendum on the bailout package and should his party lose badly that would require his government seek a new popular mandate. On the other hand political commentators have interpreted his words as political blackmail, a high stakes bluff aimed at getting reticent PASOK voters to the polls. If so, the costs of such a strategy are high indeed with the world's money markets jittery over the prospect of a change in government in Athens. Over the week Greek CDS's soaring once again above 800 points reflecting the financial world's unease at the prospect of a vote.

If Greece does go to the polls in December, both Papandreou and Samaras face the same dilemma that whoever wins is in no position to change the basic parameters of the current bailout deal and therefore will be associated in the popular imagination with job losses, painful spending cuts and a severe economic downturn.

The trick will be how to run a credible campaign yet not win, a feat the previous New Democracy leader, Kostas Karamanlis pulled off during his lukewarm campaign in 2009. Faced with immediate financial meltdown Karamanlis called early elections is September much to the annoyance of members of the party who wanted to wait till Spring 2010. However, they were unaware of just how dire the country's finances were and that by running early and losing New Democracy would still remain a coherent political force that could present itself as a credible alternative to PASOK once they had dealt with the financial mess at huge political cost.

Like the card game Black Maria in which the aim is to foist the Queen of Spades unto your opponent both main parties are supposedly gearing up to slug it out at the polls whilst secertly hoping that they will not have the misfortune to be in power.

Greek PM's press conference fails to convince voters

Greek prime minister, Giorgos Papandeou (left) leaving the St Demetrios cathedral - Thessaloniki, originally uploaded by Teacher Dude's BBQ.

Last night Greek prime minister took part in a Q & A session with journalists from the country's largest TV stations. The decision to organise such an event in the run up to the local elections in November was criticised by opposition parties who consider that the Papandreou is campaigning on behalf of his beleaguered PASOK party who have been trailing in the polls, affected by the harsh austerity measures that have seen living standards plummet as job losses, higher taxes and galloping inflation have combined to make for a perfect storm for those on lower incomes such as the unemployed and pensioners.

The harsh new economic reality facing Greeks can be seen in a slew of reports that show that many household are now struggling to pay basics such as power and phone bills. The state run electricity board says that 1 in 4 bills are overdue whilst the OTE telecommunications corporation has 500,000 unpaid accounts to deal with. Even in Greater Athens area, which one of richer parts of the nation 1 in 11 are receiving food handouts via breadlines according to research carried out by the Athens University of Economics recently. In Greece's second city, Thessaloniki, home to over a million nearly half the population is living on either savings or loans whilst another 40% say that they can barely make ends meet.



Even consumption of basics such as bread has dropped by 30% whilst other areas of the economy such as real estate and car sales have ground to a virtual halt. The Greek chamber of commerce says that 4,000 small businesses are closing every month with thousands more being added to unemployment figures.

With such a bleak outlook Giorgos Papandreou decided to hold a press conference to set out his party's policies and to explain to the nation what he believes has to be done to save Greece from bankruptcy.

The interview which was carried out by seven journalists lasted two hours and was followed by millions of viewers nationwide. In the first round journalists were allowed to ask one question and one follow up. A recipe which allowed the PM plenty of wiggle room and produced a predictably sonorific result as Papandreou was free to simply set out party positions that have long been made clear in previous briefings. While the questions were hard hitting, the lack of follow up meant they were easily sidestepped with waffle and set speeches.

The second half of the interview proved more interesting with reporters able to pursue points made and get the prime minister to do more than simple PR.



However,the basic tenet of Papandreou's message remained the same that the current crisis was the results of years of fiscal mismanagement that the previous New Democracy administration had failed to take seriously and that if Greece did not have any other choice but to implement the painful measures set down by the EU and IMF. He also made it clear that his government sees the forthcoming elections as a referendum on the measures intimating that if PASOK suffered a serious defeat then this would be seen as a loss of the popular mandate necessitating national elections in the near future.

For Papandreou the choice is clear; either accept the cuts in public services and wages set out or vote for the opposition New Democracy party led by Antonis Samaras whose brand of populist rhetoric is full of heat and passion but light on concrete proposals on exactly how different his right of centre party would deal with a 400 billion debt load without severe cuts in public spending or higher taxation.



Yet despite growing dissatisfaction with both major parties it seems business as usual with both sides making lavish promises to voter in order to persuade people to support them. The ruling PASOK party has vowed to help local income families and farmer with extra funds before the end of the year, though where exactly the money is coming from is unclear especially with so many employees of the state run organisations and pensioners who have been waiting months to be paid. Next week heating oil distributors have threatened to suspend deliveries from 1st November in protest over delays over the return of tax payments promised earlier. Likewise hospital report running low on basic supplies after pharmacutical companies stopped taking new order until the government pays outstanding debts, some going back years.

However, the 600lb gorilla in the room is the possibility of still harsher cuts when Eurostat revises Greek debt figures for 2009. The organisation delayed publishing figures citing the need for more time to untangle Greece's often tangled web of public spending statistics until 15th November just after the second round of local elections. This has been seen in many quarters are an attempt not to upset PASOK's election chances still further with more bad news. On the one hand Papandreou has stated on a number of occasions that there will be no further measures for wage earners and pensioners whilst European Commissioner Olli Rehn has made it clear that higher than expected debt load will mean more sacrifices on the part of Greece in 2011.

Attending celebrations in Thessaloniki today Giorgos Papandreou was met with boos and jeers by some worshippers outside the Saint Demetrios cathedral and was quickly whisked inside the building with church bells ringing in order cover the sounds of protests from TV crews covering the event. Hundreds of riot police were also on duty in the surrounding area ready to keep disgruntled state employees at a safe distance while people shouting anti-government slogans were swiftly confronted by uniformed and plain clothes officers in the crowd.

Athens faces prospect of yet more austerity measures

Giorgos Papakonstandinou - Greek finance minister, originally uploaded by Teacher Dude's BBQ.

On Thursday the European Statistical agency Eurostat will announce revised government debt figures for Greece in 2009. Despite being in power for over year the left of centre PASOK government headed by Giorgos Papandreou has still not been able to produce a clear idea of how much Athens actually owes.

Years of creative accountancy coupled with official incompetence means that no one is quite sure what the state has spent over the last decade. Today's Naftemporiki newspaper article lists measuresthat have been used to hide the true extent of debt load including the credit swaps organised by Goldman Sachs as well as other tricks such as delaying health service debts for years and the creation of "special funds" totalling billions of euros which were not included in budget figures.

On the other hand the heads of Greece's two largest parties are engaged in name calling in the run up to the November local elections with both prime minister Giogos Papandreou and head of the opposition New Democracy party, Antonis Samaras exchanging jibes over who is to blame for the current economic crisis.

On the one hand claims by Papandreou that he had no idea of the depth of the country's economic woes is proving hard to sell especially in light of claims by both former German finance minister, Peer Steinbrueck and Eurogroup leader, Jean Claude Juncker that he was perfectly aware of the scale of government debt before he took -power in 2009.

On the other hand Samaras who served as a cabinet minister in the New Democracy government is claiming that his party left the country in good economic shape and that it is PASOK mishandling of the economy which produced the current crisis. A claim also challenged by Juncker's claims that fellow European leaders warned Greece about the consequences of its debt load in 2008 but which then prime minister, Kostas Karamanlis chose to ignore.

What we have unfortunately is a political clash in which both sides are seemingly unwilling to accept blame for the dire state of the economy and who indulge in populist mudslinging.Despite the severity of the situation the election campaign seems to see the parties operating on a business as usual basis.The consistent pattern of lying and evasion is undermining what little credibility the Greek political system has in the eyes of many voters who give little credence to political party claims and counter claims.

The only thing most people are sure about is that their living standards are rapidly dropping with 92% of people in the greater Athens area saying they have reduced spending even on food. As the political elites argue over who is not to blame one in three young Greeks are unemployed and the country is looking at even harsher measures which will make this winter one of the most difficult in living memory.

Fiddling while Athens burns - Greek media's love affair with the political establishment shows no sign of ending

It's a measure of how far the Greek political system and its supporters in the local media are out of touch with the rest of the country that the recent uproar over the remarks by Jean Claude Juncker,  head of Euro Group that been the subject of some much air time and print columns during the last few days. According to an off the record remark made by Juncker in Washington a Greek prime minister told him that Greece was a country of corruption, a revelation on par with learning that the French eat rather a lot of cheese or that it can get awfully cold in Russia.

The fact that Greece has one of the highest corruption indices in the European Union or that the present PM, Giorgos Papandreou made much the same comment after taking power in 2009 seems to have been ignored by  the Greek political establishment and the country's media who went into a feeding frenzy in their attempts to identify which Greek PM had made such an outrageous statement. Kostas Simitis, head of the 2000-2004 PASOK run administration, Kostas Karamanlis, PM from 2004 till 2009 and finance minister Giorgos Papankonstantionou on behalf of current PM Giorgos Papandreou all rushed to say that they had said no such thing. (Juncker later made a statement saying that it was Giorgos Papandreou)

And so it has gone on, with endless speculation in the press as to exactly let the cat out of the bag. The fact that the Greek state is corrupt, of course comes as absolutely no surprise to anyone living in the country. Indeed Transparency International calculated that Greeks spent an average of 1355 euros in bribes in 2009.
Actually, the problem is not that the Greek political establishment turns a blind eye to corruption (see the Vatopedi land swap scandal) but rather everyone now knows. Worst of all, foreigners know just how venial Greek politicians are. How embarassing when one is putting one's best foot foward in Brussels, Strasburg or Washington that the rest of the world sees you as little more than a robber baron. For people as image conscience and ego driven as Greek politicans in power this comes as a terrible blow.

Perception, rather than reality is everything which is one of the reasons why the country is in such as mess. Why bother attempting to make difficult political decisions when all you need is a handful of IOUs and promises which you may or may not honour. Even now the opposition New Democract leader, Antonis Samaras is touring northern Greece in the run up to November's local elections giving his word to open factories, fund development and the like knowing full well that he would have no more financial freedom than the current PASOK administration to act. (The fact he was a cabinet minister in the previous government which ran up such huge debts seems to have slipped his mind at present).

Such a cavalier attitude to the truth also explains the chronic distrust of the average Greek concerning any promise politicians make. Indicative of this is the refusal of truck drivers to end recent industrial action despite promises by the government to discuss their demands. It wasn't until the proposals were put in writing that truckers agreed to stop strike action. Of course truck drivers know that even written reassurances mean little to politicians but it does give them a little less wiggle room.

But while the country's TV talking heads and their partners in crime and print have talked endlessly about what Juncker's statement means the country slides ever deeper into depression (both financial and psychological) with schools unable to pay fuel bills, hospitals running out of medical supplies and and an angry electorate bracing itself for a winter with 30% hikes in heating costs. For many patience is running out with the endless self - referential charade of the current political setup.

Just one more thing to consder, though when considering the role of corruption in the current financial debacle is that Iceland, whose per capita debt is even greater than Greece's, was ranked the world's 7th least corrupt government (Athens came in at 71) in 2008.

PASOK: or how I learned how to stop worrying and love the IMF

"We will make it as long as we believe in our strength and have self - confidence" - Giorgos Papandreou, Greek prime minister talking about the country's financial crisis.

 "We're on the right road" Greek finance minister", Giorgos Papakonstantiou

"I can see the economic measures are already working", Teacher Dude

How did it come to this? The roots of the current Greek economic crisis

Looking into the abyss - Giorgos Papandreou, prime minister of Greece, originally uploaded by Teacher Dude's BBQ.

This article was originally written last February but I thought that I would post it again since most of the points remain valid and especially in light of the fact that Eurostat has warned that Greek debt numbers are to be revised upwards for the years 2006-2009.

Much of the current media coverage over Greece's debt crisis is focused on how the country is going to raise the funds necessary to cover the $400 plus billion it owes creditors. Scenarios concerning the role of Germany and/or France in bailing out Athens are discussed constantly on national TV and in the newspapers and what will need to be done in order to convince Greece's European partners to cover cost of lending the billions needed just to keep the country afloat.

However, whatever happens in the coming months the question of what Greece does next in a world in which its financial choices are closely scrutinised by whatever monetary institution steps into the breach to save the country from bankcruptcy has not been addressed.

The prospect that an elected socialist government will be obliged to implement a conservative fiscal policy controlled by unelected officials raises all kinds of political dilemmas which Giorgos Papandreou's PASOK administration will have to deal with in the immediate future.


Papandreaou will be forced to challenge directly exactly those public sector trade unions which have put him and PASOK in power. In addition he will be forced to cut areas of spending which have been used by successive government to ensure political support.


The prospect of a place in the Greek civil service has long been the source of political power for parties on the right and left of the political spectrum. This combined by the promise of public sector contracts to economic elites in the private sector form the basis of the country's feudal political structure and in no small measure contributed to its present woeful economic situation.


Instead of land and power being swopped for military service the present Greek version of feudalism sees votes and political support flowing up the system in return for public funds and the influence it garners flowing downwards. It is a structure of patron-client relations which links the heads of the major parties to the humblest villager and is the lifeblood of modern Greek politics.


The ebb and flow of such influence and the complicated web of personal, familial and political relations that it engenders helps explain much of the apparent confusion and chaos of modern life in Athens and other major cities. Much of the country's infrastructure is divided into a patchwork of competing fiefdoms that have formed as a result of the present political setup. Each participant owes their position and continued economic well being to maintaining the right connections with those above and below them in the hierarchy. In such a system qualifications, skill, effectiveness and ability play second fiddle to being able to stay in with those who are in a position to advance your career.


Another by - product is chronic inefficiency and confusion as its duty of every fiefdom to ensure that it gets the maximum amount of resources in order to guarantee its survival. Co-operation and cost cutting mean giving up exactly those resources one needs to make sure that money and influence continues to flow to those whose support you need.


The effects of this system also affect the private sectors as the companies competing for contracts with the public sector, a huge player in the Greek economy, do so on the basis of political, personal and family connections. In some cases this takes the form of outright bribery but many others there is the mutual understanding that favours given must at some point be returned. It is no coincidence that many of the country's richest men have media wings attached to their business conglomerations which can be used to promote or attack parties and politicians .


The upshoot of this unholy alliance is that crony capitalism and "licence Raj's" dominate the economy stifling innovation and competition. There is little incentive to cut the cost of your product or improve the quality of your service in such a system. As a result Greek companies will dominant nationally rarely have the expertise to break into developed markets where transparency means that methods used at home cannot be employed.


Whilst foreign observers often point the finger of blame at Greece's powerful public sector unions for lack of competiveness and low productivity the reality is that pay in the private sector has remained stagnant for years and that much critised worker protection laws are rarely applied to non - public sector businesses. Despite a pool of cheap, educated labour which can be hired and fired at will the private sector has done little to prepare the demands of a modern globalised economy and instead reaped the benefits of European Union's lowest wage while raising prices far beyond the rate of inflation safe in the knowledge that an invisible web of cartels and unofficial "gentlemen's agreements" mean that they will not be faced with any real competition.


It is difficult to see how an economic and political system run on such principles can reform itself in the kind of time scale being proposed by Europe and controlled by exactly those people who helped run the country into the ground in the first place. The obvious answer is that Greece will not be able to implement the kinds of reforms being demanded and that in trying to square the circle the country will tear itself apart as different social and economic groups turn on each other to preserve a semblance of their priviledges and power.


Already there has been a growing wave of political violence with terrorist attacks now forming a staple of the daily news. That combined with a burgeoning crime rate form the background to a society that appears to be gradually coming apart at the seams.

http://www.nowpublic.com/world/greece-morning-after

Despite crisis business as usual for Greece's politicians

Κώστας Καραμανλής - Costas Karamanlis. Prime minister of Greece, originally uploaded by Teacher Dude's BBQ.

Towards the end of the ex - Greek prime minister, Konstantinos Karamanlis's second term yet another corruption scandal erupted which would ultmately be the death knell for the ruling conservative New Democracy party in the 2009 general elections. After less than two years in power the party founded by his uncle, also called Konstantinos Karamanlis in 1974 lost power to the left of centre PASOK party lead by Giorgos Papandreou, son and grandson of previous Greek PMs Andreas and Giorgos Papandreou.

The revelations that senior New Democracy officials had collaborated in a highly dubious land swap in which a remote lake in the north of Greece was exchanged for a large piece of prime Athens real estate outraged public opinion and ultimately ended in Karamnlis calling for early elections.

The details of the deal which featured the Greek Orthodox monastery of Vatopedi are as convoluted as they are legally dubious. However, an insightful article in Vanity Fair by Michael Lewis paints a lucid, if dark picture of corruption and lawlessness at the heart of the Greek political establishment. According to Lewis it was exactly the ability of polticians to operate without oversight or restraint that helped create the present financial crisis and massive debt load.

Yet even as the country set to enter its third year of recession with the prospect of still more cuts and the economy set to shrink even further the the political establisment in Athens are still playing the same constitutional games, seemingly untouched by the financial maelstrom embracing Greece. Evasions, denials and endless parliamentary manouevering still rule the day and even after the appearance plethora of evidence indicating wrong doing the former prime minister of Greece can say that neither he, nor his administration have any repsonsibility for either the Vatopedi scandal of the dire state of Athens's coffers.

It would be nice to think that by ousting a corrupt government Democracy has once more won out. The reality of the situation is that one corrupt poltical oligarchy has been replaced by another. The current rulers of Greece, PASOK have a rich history of scandal and corruption which has been not resulted in a single conviction, The Sieman's bribery case and a list of pay offs by other German firms to PASOK officials in the run up to the 2004 Olympic Games has also been put on the parliamentary back burner, to be quietly dropped at a future date.

Given that the current political scene is full of exactly those officials who presided over the creation of Greece's present woes its is very hard to have faith in their ability to not repeat the mistakes of the past. In all probability the future holds more of the same just on a smaller scale reflecting the country's dire fiancial state.

It's a bitter irony that Kostas Karamanlis was elected on a reform ticket by an electorate fed up with the corruption of the previous PASOK government lead by Kostas Simitis. His promise to clean up politics and reform the dysfunctional Greek state stroke a chord with voters who hoped that the right of centre New Democracy party would change the status quo. As history has shown the differences in ideology between Greece's two largest parties are nothing compared with their inability to resist the financial temptations offered by power.

Faced with the failure of both PASOK and New Democracy to control the greed of their own officials the local elections in November may prove to be the beginning of the end of the current Greek party political scene.

The 75th Thessaloniki Trade Fair welcomes kids too

The 75th Thessaloniki Trade Fair welcomes kids too, originally uploaded by Teacher Dude's BBQ.

Gas masks are now available in sizes xxs, xs, s and junior.

Taken outside the Vellidio conference centre in the northern port city of Thessaloniki as Greek PM Giorgos Papandreou was addressing the nation over the state of the economy. Outside the speech was met with boos and jeers by protesting fire fighters and their families.

Doctor who threw shoe at Greek PM wrestled to the ground

Doctor who threw shoe at Greek PM wrestled to the ground, originally uploaded by Teacher Dude's BBQ.

Despite massive security measures including the drafting of 4500 extra police officers into the northern greek city of Thessaloniki a lone protester managed to throw a shoe at the Greek prime minsiter, Giorgos Papandreou just moments after leaving the city's international trade fair inaugeration.

The aged man was quickly wrestled to the ground by the PM' security detail and dragged off to a waiting police car shouting that the country was now a "junta"and the government had planned to steal people's homes.

Even during Papandreou's walk about inside the fair other protesters managed to get within feet of the PM and voice their anger over the government's employment policies.

Outside the fair Thessaloniki, Greece's second largest city has taken on the air of a city under siege with thousands of uniformed officers on every street corner and hundreds of riot police on high alert ahead of this evening's planned protest marches.

Yesterday evening fellow police officers along with firefigthers also marched in protest over cuts in salaries and planned changes to pension rights, closely followed by riot squad units.

More photographs on Demotix.

Is Greek PM, Giorgos Papandreou the new Gorbachev?

Back in 1993 I had the chance to brush up against history and through a bizarre set of coincidence too laborious to detail here I managed to see Mikhail Gorbachev, the Soviet Union's last leader in the flesh. He happened to be here in Thessalonikiin order to be presented with an honourary degree from the Aristotelion University of Thessaloniki. In the heat of early summer I, along with thousands of others crowded into a packed auditorium to hear the man who had brought the Cold War to an end speak to a sweaty but respectful audience of young students.

His acceptance speech, which barely survived the acoustics of the room and a particularly garbled translation was met with cheers and wild applause, a reflection of Gorbachev's standing in the West following the peaceful resolution of 45 years of armed stand off which had threatened to end all life on the planet.

Likewise most of the media in Western Europe and North America was full of praise of the reforms and changes Gorbachev had instigated in the old Soviet Union and it was assumed the peoples of Russia and the other Soviet republics shared this enthusiasm.

It was only by talking with many of the ethnic Greek immigrants from places like Georgia and Armenia that I found out a different story. For many of those who left the Russian Federation in the 90's Gorbachev was a figure of hate, the man who had, in their opinion single handedly ruined the country, allowing it to fall into the hands of a ruthless mafia and a handful of venial, super rich oligarchs who ran the nation into the ground.

With the old Soviet economy now defunct and no real market economy to take its place, millions were plunged into dire poverty causing the average life span of a Russian male to drop by a nearly a decade. In addition the massive economic dislocation caused by a sudden plunge into an unregulated market economy forced millions more into exile across Europe and the rest of the world.

With the ascension of prime minister, Giorgos Papandreou to power it is easy to see similarities between his efforts to reform Greek society and his own socialist PASOK party with those of Gorbachev's to overhaul both the USSR and the Communist Party. In both case the consumate insider realised that the situation could not go on and so set in motion sweeping changes that have been praised for their boldness by outsiders, yet caused deep consternation to those directly affected. Although the worst of the economic decline Russia experienced happened after Gorbachev was ousted from power many, held him responsible for letting the genie out of the bottle.

On the other hand while most Greeks are now prefectly aware of the flaws of the country's failing economy and political system they believe that the financial measures now being rammed through parliament are a recipe for disaster and will not help the beleagured Balkan nation find its feet. With the economy in its third year of contraction, unemployment up 50% in the last 12 months, and tax revenues falling by billions there is ample empirical evidence to support gainsayers.

Giorgos Papandreou may well be able to present himself in flawless English to readers of Time magazine or CNN viewers as his country's saviour but this is a view shared by ever fewer of his fellow citizens. Like Gorbachev, Giorgos Papandreou, son and grandson of previous Greek PMs may go down in history as a leader lauded abroad and loathed at home.

Flash, sorry George, we love you but we only have 14 hours to save the world (banking system)

Flash, sorry George, we love you but we only have 14 hours to save the world (banking system), originally uploaded by Teacher Dude's BBQ.