Skip to main content

Greek public debt is illegal, illegitimate, and odious

Hellenic Parliament’s Debt Truth Committee Preliminary Findings - Executive Summary of the report

Key points:

All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious. It has also come to the understanding of the Committee that the unsustainability of the Greek public debt was evident from the outset to the international creditors, the Greek authorities, and the corporate media. Yet, the Greek authorities, together with some other governments in the EU, conspired against the restructuring of public debt in 2010 in order to protect financial institutions. The corporate media hid the truth from the public by depicting a situation in which the bailout was argued to benefit Greece, whilst spinning a narrative intended to portray the population as deservers of their own wrongdoings.”

The use of the bailout money is strictly dictated by the creditors, and so, it is revealing that less than 10% of these funds have been destined to the government’s current expenditure.”

... the increase in debt was not due to excessive public spending, which in fact remained lower than the public spending of other Eurozone countries, but rather due to the payment of extremely high rates of interest to creditors, excessive and unjustified military spending, loss of tax revenues due to illicit capital outflows, state recapitalization of private banks, and the international imbalances created via the flaws in the design of the Monetary Union itself. Adopting the euro led to a drastic increase of private debt in Greece to which major European private banks as well as the Greek banks were exposed. A growing banking crisis contributed to the Greek sovereign debt crisis. George Papandreou’s government helped to present the elements of a banking crisis as a sovereign debt crisis in 2009 by emphasizing and boosting the public deficit and debt.”

They [mechanisms devised by the agreements that were implemented since May 2010] created a substantial amount of new debt to bilateral creditors and the European Financial Stability Fund (EFSF), whilst generating abusive costs thus deepening the crisis further. The mechanisms disclose how the majority of borrowed funds were transferred directly to financial institutions. Rather than benefitting Greece, they have accelerated the privatization process, through the use of financial instruments.”

... the creditors imposed intrusive conditionalities attached to the loan agreements, which led directly to the economic unviability and unsustainability of debt. These conditionalities, on which the creditors still insist, have not only contributed to lower GDP as well as higher public borrowing, hence a higher public debt/GDP making Greece’s debt more unsustainable, but also engineered dramatic changes in the society, and caused a humanitarian crisis. The Greek public debt can be considered as totally unsustainable at present.”

The drastic adjustments, imposed on the Greek economy and society as a whole, have brought about a rapid deterioration of living standards, and remain incompatible with social justice, social cohesion, democracy and human rights.”

The agreements contain abusive clauses, effectively coercing Greece to surrender significant aspects of its sovereignty. This is imprinted in the choice of the English law as governing law for those agreements, which facilitated the circumvention of the Greek Constitution and international human rights obligations.”

Debt to the IMF should be considered illegal since its concession breached the IMF’s own statutes, and its conditions breached the Greek Constitution, international customary law, and treaties to which Greece is a party. It is also illegitimate, since conditions included policy prescriptions that infringed human rights obligations. Finally, it is odious since the IMF knew that the imposed measures were undemocratic, ineffective, and would lead to serious violations of socio-economic rights.”

Debts to the ECB should be considered illegal since the ECB over-stepped its mandate by imposing the application of macroeconomic adjustment programs (e.g. labour market deregulation) via its participation in the Troïka. Debts to the ECB are also illegitimate and odious, since the principal raison d’etre of the Securities Market Programme (SMP) was to serve the interests of the financial institutions, allowing the major European and Greek private banks to dispose of their Greek bonds.”

The EFSF engages in cash-less loans which should be considered illegal because Article 122(2) of the Treaty on the Functioning of the European Union (TFEU) was violated, and further they breach several socio-economic rights and civil liberties. Moreover, the EFSF Framework Agreement 2010 and the Master Financial Assistance Agreement of 2012 contain several abusive clauses revealing clear misconduct on the part of the lender. The EFSF also acts against democratic principles, rendering these particular debts illegitimate and odious.”

The bilateral loans should be considered illegal since they violate the procedure provided by the Greek constitution. The loans involved clear misconduct by the lenders, and had conditions that contravened law or public policy. Both EU law and international law were breached in order to sideline human rights in the design of the macroeconomic programmes. The bilateral loans are furthermore illegitimate, since they were not used for the benefit of the population, but merely enabled the private creditors of Greece to be bailed out. Finally, the bilateral loans are odious since the lender states and the European Commission knew of potential violations, but in 2010 and 2012 avoided to assess the human rights impacts of the macroeconomic adjustment and fiscal consolidation that were the conditions for the loans.”

The debt to private creditors should be considered illegal because private banks conducted themselves irresponsibly before the Troika came into being, failing to observe due diligence, while some private creditors such as hedge funds also acted in bad faith. Parts of the debts to private banks and hedge funds are illegitimate for the same reasons that they are illegal; furthermore, Greek banks were illegitimately recapitalized by tax-payers. Debts to private banks and hedge funds are odious, since major private creditors were aware that these debts were not incurred in the best interests of the population but rather for their own benefit.”

Having concluded a preliminary investigation, the Committee considers that Greece has been and still is the victim of an attack premeditated and organized by the International Monetary Fund, the European Central Bank, and the European Commission. This violent, illegal, and immoral mission aimed exclusively at shifting private debt onto the public sector.”

Full report:

Comments

  1. Anonymous28/6/15 14:09

    In summary:

    "Anyone who lent us money is stupid (or criminal) and should have known better. Repaying what we owe is inconvenient, so we'll call our debts "illegitimate, illegal, and odious"" consider them null and void.

    Ok. And you were expecting further loans from us? No, seriously?

    ReplyDelete
  2. Anonymous13/7/15 12:37

    More accurate summary:
    The debt occurred as a result of criminal actions by bankers and politicians, both Greek and foreign. The present Greek government cannot be held responsible for the criminal actions of previous governments, nor for the criminal actions of foreign banks. The only moral course is therefore to refuse to pay the debt, even at the cost of having to leave the Euro and the EU - which actually may or may not be such a bad thing; nobody has tried before, so nobody knows. Many countries seem to be prospering outside the EU and Euro, including Norway and Switzerland, for example, and Greece has better weather and more desirable real estate than either.

    The Greek government does not need to borrow any more money. In fact, it didn't need to borrow any in the first place. All it has ever needed to do is to tax the rich and make them actually pay their tax bills.

    ReplyDelete
  3. Anonymous8/9/15 22:42

    Greece is a victim of modern day pirate like robbers. They steal from you blindly and then they tell you how to live.Down with tyranny.

    ReplyDelete

Post a Comment

Popular posts from this blog

MSNBC poll on Julian Assange backfires epically

globinfo freexchange
Frequently - if not always - polls set-up by corporate media aim to track public opinion on a specific issue. The results could be used by the deep state apparatus in order to justify an action, or, figure out how to handle a negative trend for the deep state agenda.
Of course, the question could be set-up in a very simplified and convenient manner, so that the results could be translated accordingly.
Yet, the results from the following MSNBC poll on Julian Assange are so devastating for the deep state planning that leave little room for any misconception and manipulation.
Specifically, you have two options to answer the following question: “Should Julian Assange be prosecuted for his involvement in WikiLeaks?
The first option is to answer that "Yes, he is a criminal."
The second option is to answer that "No, he is a whistleblower and deserves protection."
At the time we checked out the results, the second answer prevailed overwhelmingly with 95% (~1…

Trump's failure to start a civil war in Venezuela could be proved disastrous for the plans of the US imperialists

by system failure
Donald Trump and his bloodthirsty warhawks are about to break the record of failed attempted coups against a single country. Concerning Latin America, the US imperialists were setting the desirable conditions for their corporate beasts usually by overthrowing governments and supporting military dictatorships.
But Trump himself has already broken another record. The record of not keeping his promises to the American people - every one of them. The 'anti-interventionist', 'anti-establishment' Trump, has already started a war against Venezuela, which so far includes brutal economic sanctions, sabotage operations, attempted coups. Trump not only does whatever he can in order to satisfy the US neocon/neoliberal establishment and the deep state, but especially in the case of Venezuela, he follows the obsolete CIA playbook to the letter.
So, after a series of failed orchestrated coups, Trump's warhawks attempted to start a civil war in Venezuela by mobiliz…

Former top US official confirms: military action against Venezuela will become a Vietnam 2.0 for the US imperialists

globinfo freexchange
Former US Chief of Staff for Secretary of State, Lawrence Wilkerson, spoke with Sharmini Peries of the Real News about Trump's plans for a potential US military action against Venezuela.

As he pointed out:
Elliott Abrams, Mike Pompeo, John Bolton, and the administration’s approach to Venezuela, is as if they were Panama or they were Honduras. They are not. They’re very professional. That puts them above Argentina, above Chile, whose militaries are quite competent, too. 
Mr. Trump ought to be very, very careful about saying he’s going to send marines or soldiers to Venezuela because the Venezuelan military will be unified immediately. It will take to the hills and it will fight as the Vietnamese did during the Vietnam War, and as the Taliban are in Afghanistan right now: to the last marine, to the last soldier.
Putin is a smart man, probably told Trump 'you don’t want to get involved in those jungles. You don’t want to get involved in those mountains. You …

Latest ridiculous attempts by the US propaganda machine on Gaza, Venezuela – enjoy

globinfo freexchange
Plenty of propaganda is manufactured by the US deep state apparatus to push for the imperialist agenda. Yet, some elements of the propaganda machine are still unable to realize that independent truth seekers and real journalists are watching, and therefore, these elements could be easily exposed.
Sloppy efforts immediately backfire in social media and the Internet. Most recent sloppy efforts are related to Gaza and Venezuela.
As the Newsweekreported:
Senior 2020 Trump campaign adviser Katrina Pierson used a 2015 video showing a Ukrainian rocket launch alongside comments about this weekend's deadly attacks between Israel and Gaza militants and a condemnation of congresswoman Ilhan Omar.
Pierson, who was Donald Trump's 2016 campaign spokesperson and is a frequent cable news guest, shared the video—which was first posted online in 2015 and reportedly shows Ukraine launching dozens of rockets at Russian-backed separatists—on Sunday.
Alongsi…

Fox clowns committed suicide by bringing Bernie Sanders inside their nest to destroy them

... and the liberal centrists must be really pissed off
globinfo freexchange
It was epic indeed. The moment where the crowd inside the Fox ultra-right nest enthusiastically cheers in favor of a government-run healthcare system, could actually be considered a historical moment, thanks to Bernie Sanders.
The moment clearly depicts and officially marks the end of controlled audiences in controlled MSM environments. It shows that the well-paid MSM pundits and their producers are finding increasingly difficult to set up the scene according to the desirable agenda. Therefore, audience reactions can't be directed, or predicted in many cases by the MSM 'experts'.
The shock for the MSM tools was inevitable. It shows that they are now completely detached from the ordinary people and their problems.
But the whole thing highlighted something even more fundamental. It was another loud evidence for the fact that the BS neoliberal narratives don't work anymore.
And even more remarkably, th…

CNN sets up a fully controlled audience panel to promote pro-establishment candidates using Bernie Sanders progressive agenda

 An example of advanced psy-ops by the corporate media 

globinfo freexchange

As we wrote recently, the moment where the crowd inside the Fox ultra-right nest enthusiastically cheers in favor of a government-run healthcare system, could actually be considered a historical moment, thanks to Bernie Sanders.

The moment clearly depicts and officially marks the end of controlled audiences in controlled MSM environments. It shows that the well-paid MSM pundits and their producers are finding increasingly difficult to set up the scene according to the desirable agenda. Therefore, audience reactions can't be directed, or predicted in many cases by the MSM 'experts'.
Now, here is an example showing a successful set up through a controlled audience. It took place inside CNN and there is plenty of evidence that was indeed carefully set up. In the following video, Mike Figueredo of the Humanist Report felt optimistic, but also quite frustrated at the same time. Figueredo's reaction …

Chelsea Manning proves that she is a real hero

globinfo freexchange
Outside of an Alexandria, Virginia courtroom, Chelsea Manning explained to reporters why she would refuse to testify before a second grand jury investigating Wikileaks' Julian Assange, and as a result, face jail time once again. On May 9, Manning was released from jail because the term of the last grand jury she refused to testify before expired. She was immediately subpoenaed once again—for May 16.
Her following words clearly depict that Chelsea Manning is a person with strong and solid principles and a real hero:
I will not cooperate with this or any other grand jury, so it doesn’t matter what it is, or what the case is. I’m just not going to comply or cooperate. Facing jail again, potentially today, doesn’t change my stance. The prosecutors are deliberately placing me in an impossible position: go to jail and face the prospect of being held in contempt again, or, in the alternative, foregoing my principles, the strong positions that I have, that I hold dear…

Chemical weapons assessment contradicting official Syria narrative is authentic

The Organization for the Prohibition of Chemical Weapons (OPCW) has begun responding to queries by the press about a leaked document which contradicts official OPCW findings on an alleged chemical weapons attack last year in Douma, Syria. The prepared statement they’ve been using in response to these queries confirms the authenticity of the document.
To recap, a few days ago the Working Group on Syria, Propaganda and Media (WGSPM) published a document signed by a man named Ian Henderson, whose name is seen listed in expert leadership positions on OPCW documents from as far back as 1998 and as recently as 2018. It’s unknown who leaked the document and what other media organizations they may have tried to send it to.
The report picks apart the extremely shaky physics and narratives of the official OPCW analysis on the gas cylinders allegedly dropped from Syrian government aircraft in the Douma attack, and concludes that “The dimensions, characteristics and appearance of the cylinders, a…

Updates for a possible coup against Jeremy Corbyn

 globinfo freexchange

In this episode of RT's Going Underground, former MP and author of A Very British Coup and The Friends of Harry Perkins, Chris Mullin, spoke about the history of MI5 and MI6 meddling in UK politics against Labour Party leaders. He also estimated whether a British coup is underway against Jeremy Corbyn.
The story of A Very British Coup was set in the 1980s when there was speculation about the possibility of a government led by someone like Tony Benn and the establishment conspired to bring it down. The establishment in this case being a sort of mixture of the security and intelligence services, the media barons, with a little help from the Americans. 
Tony Benn looked likely to become deputy leader of the Labour Party which at the time was strongly challenging the government of Margaret Thatcher in the opinion polls. Persistent rumours circulated over the years about attempts by members of the British security services, and other wings of the British Establish…

How GMO seeds and Monsanto/Bayer’s “RoundUp” are driving US policy in Venezuela

With Juan Guaidó’s parallel government attempting to take power with the backing of the U.S., it is telling that the top political donors of those in the U.S. most fervently pushing regime change in Venezuela have close ties to Monsanto and major financial stakes in Bayer.
by Whitney Webb
Part 4 - Why is a top to Marco Rubio increasing his stake in Bayer while others flee?
Yet, it is AEI’s top individual donor noted in the accidental “schedule of contributors” disclosure who is most telling about the private biotech interests guiding the Trump administration’s Venezuela policy. Paul Singer, the controversial billionaire hedge fund manager, has long been a major donor to neoconservative and Zionist causes — helping fund the Foreign Policy Initiative (FPI), the successor to the Project for a New American Century (PNAC); and the neoconservative and islamophobic Foundation for the Defense of Democracies (FDD), in addition to the AEI.
Singer is notably one of the top political donors to Senat…