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Tag Archives: yanis varoufakis

An aspect of the rise and break-up of the Syriza administration remains largely unexamined: Syriza was an experiment in left unity. The proposition was that if all leftists united behind an agreed programme, a left government could be elected. Leaving aside the need to enter into coalition with a right wing, anti-austerity party, the unity approach seemed to deliver. However, Greece is now in worse shape than when Syriza and its right wing partners came to power and Syriza has split. This outcome was predictable, if not downright inevitable. There were two related flaws from the outset. Firstly, there was the untruth (a clumsy term but it covers belief, lie and fantasy) that a government could end austerity without negative consequences and secondly, there was the belief among leftists that unity could encompass those who were essentially uncompromising. It was clear from the outset that an end to “austerity” could not be achieved and because compromise would be out of the question for components of the alliance, it was to be expected that Syriza would split.

Syriza sought election by offering to confront Greece’s lenders and secure deliverance from onerous bail-out conditions. So far, so populist and citizens voted for it in numbers sufficient to make Syriza the largest party in parliament. The rest of the Syriza election programme seems to have been virtually ignored.

Shortly after the government was formed a different tune was heard and there were reasons to be optimistic. Confrontation was out; deals and compromise were in. The time seemed to be right for Greece to assume leadership of the growing support for a more Keynesian Europe.

It has never been fully explained how the optimism too quickly drained away in acrimony. Finance Minister, Yanis Varoufakis, was insistent that Greece wanted to pay her debts and yet the descent into nationalism and simple anti-austerity “principle” happened.* These months reversed a modest economic recovery and pushed reform of European fiscal policy off the agenda. Then after the farcical referendum and the subsequent bailout deal the chasm between left reform and left revolt became impossible to ignore.

That chasm is a problem on the left and it cannot be papered over; it makes left unity impossible. In recent decades most leftists have abandoned revolution in any meaningful sense of the word but they’ve also worked to keep their distance from what they deride as mere social democracy. In refusing to join with the century-old tradition of those socialists who work on reforms through the parliamentary structures of the liberal state, they create the paradox of wanting revolutionary change without a revolution.

The tendency to underestimate that refusal to cross to the other side of the Marxist tradition is at the root of left unity wishful thinking.

In Greece the ironically named Popular Unity has walked off to oppose Syriza. Their aim remains to end austerity by taking Greece out of the deal with creditors. They exhibit, however, what might be termed revolutionary honesty because they now talk of leaving the Euro if necessary and of rebuilding the country.

The Greek experiment with Left Unity may have done lasting damage to the very idea of Left government in that the economy was damaged without producing any real change and without pushing through left reforms.

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* https://colummccaffery.wordpress.com/2015/07/06/its-not-plausible-that-the-publicly-expressed-argument-of-yanis-varoufakis-caused-this-crisis/

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Before reading watch and listen to Yanis Varoufakis in this Youtube clip. He’s not talking revolution. He’s not even talking socialism. Indeed he’s on about that most liberal of fashions, value free, “evidence based” policies. How this could lead to a crisis requires explanation.

Ok, that was the former Greek Finance Minister making a persuasive case for old fashioned, liberal Keynesianism. This was a view that was growing in popularity in the public press and on-line in the months before the Greek election. Reading and listening to Syriza before the election it seemed that they were just doing the routine, familiar, populist anti-austerity pitch for votes. After the election they changed to an emphasis on negotiation and the sort of position outlined in this video. It was a very encouraging development and it raised the hope that Syriza might strengthen or lead the emerging consensus. That consensus was certainly not socialist or even mildly egalitarian but rather the creation of a functioning liberal economy – yes, ripe for leftward reforms but the left would defer that until a reasonably stable and prosperous liberal economy had developed. Clearly it would be difficult if not impossible to get a liberal deal of this kind through the Greek parliament without the support of the older centre-right and centre-left parties. However, somewhere during the months of negotiation the Keynesian position disappeared. Towards the end the German Chancellor insisted that any deal would have to be approved by the Greek Parliament. In doing so she inadvertently hastened the end of negotiations and saved Syriza’s unity. In the week before the IMF payment was due there were two sets of proposals: the creditors’ ultimatum and Syriza’s.  As the Greek Finance Minister insisted, there was nothing much between them. Then the P.M. decided on a referendum to accept or reject the ultimatum. There needs to be an enquiry into these negotiations because it is simply not plausible that the argument advanced by Yanis Varoufakis in this video caused a crisis.