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Lawmakers (Just Not Greece’s) Approve a Bailout Extension Lawmakers (Just Not Greece’s) Approve a Bailout Extension
(35 minutes later)
ATHENS — The debate lasted more than two hours, with one conservative lawmaker sharply accusing the Greek government of acting in bad faith. A liberal railed against Greek tycoons exploiting the tax system. And the powerful finance minister argued that lawmakers must put aside their differences and accept the controversial four-month extension of Greece’s bailout program.ATHENS — The debate lasted more than two hours, with one conservative lawmaker sharply accusing the Greek government of acting in bad faith. A liberal railed against Greek tycoons exploiting the tax system. And the powerful finance minister argued that lawmakers must put aside their differences and accept the controversial four-month extension of Greece’s bailout program.
Ultimately, lawmakers approved the Greek program on Friday — just not those in Greece. The vote was held in the Bundestag in Berlin, not inside the Greek Parliament building looming over Syntagma Square in Athens. Parliaments in Finland, Estonia and the Netherlands also granted approvals this week, as non-Greek politicians voted for Greece’s future even as Greek politicians did not.Ultimately, lawmakers approved the Greek program on Friday — just not those in Greece. The vote was held in the Bundestag in Berlin, not inside the Greek Parliament building looming over Syntagma Square in Athens. Parliaments in Finland, Estonia and the Netherlands also granted approvals this week, as non-Greek politicians voted for Greece’s future even as Greek politicians did not.
The odd spectacle did have a rationale — the Greek deal required parliamentary approval in creditor countries — yet it also underscored how the economic crisis has accentuated the irregular shape of federalist democracy in the European Union, where the political structure remains under construction and the lack of democratic accountability of officials in Brussels is a sore point.The odd spectacle did have a rationale — the Greek deal required parliamentary approval in creditor countries — yet it also underscored how the economic crisis has accentuated the irregular shape of federalist democracy in the European Union, where the political structure remains under construction and the lack of democratic accountability of officials in Brussels is a sore point.
To some ordinary Greeks, the trade off for collecting the $277 billion in bailout money has sometimes felt like a surrendering of democratic rights, whether to Brussels or to lawmakers in other countries, especially Germany. European officials from creditor institutions have alienated many Greek citizens during inspection trips in which they were sometimes accused of bluntly dictating policy and legislation in the name of fulfilling the conditions of the bailout. To some ordinary Greeks, the trade-off for collecting the $277 billion in bailout money has sometimes felt like a surrendering of democratic rights, whether to Brussels or to lawmakers in other countries, especially Germany. European officials from creditor institutions have alienated many Greek citizens during inspection trips in which they were sometimes accused of bluntly dictating policy and legislation in the name of fulfilling the conditions of the bailout.
“If we cannot change economic policy through elections, then elections are irrelevant,” said Georgos Katrougalos, the administrative reform minister in the newly elected Greek government. “Elections are irrelevant and it is useless to vote.”“If we cannot change economic policy through elections, then elections are irrelevant,” said Georgos Katrougalos, the administrative reform minister in the newly elected Greek government. “Elections are irrelevant and it is useless to vote.”
The sense that national voices are not being heard — and that the bureaucracy in Brussels is largely unaccountable to any electorate — continues to fuel nationalist, populist movements across Europe, on both the political right and left. Politics in Britain, France, Spain and other nations are being reshaped by anti-European forces.The sense that national voices are not being heard — and that the bureaucracy in Brussels is largely unaccountable to any electorate — continues to fuel nationalist, populist movements across Europe, on both the political right and left. Politics in Britain, France, Spain and other nations are being reshaped by anti-European forces.
But nowhere are the questions about the nature of democracy in the European Union playing out more starkly than in Greece, where Prime Minister Alexis Tsipras and his leftist, anti-austerity Syriza Party tapped into this type of outrage to take power in the Jan. 25 national elections.But nowhere are the questions about the nature of democracy in the European Union playing out more starkly than in Greece, where Prime Minister Alexis Tsipras and his leftist, anti-austerity Syriza Party tapped into this type of outrage to take power in the Jan. 25 national elections.
Before taking office, Mr. Tsipras and Syriza campaigned on the economic hardship wrought by austerity in Greece yet also tapped into the widespread sense of democratic aggrievement. Public resentment against representatives for the country’s three creditors — the International Monetary Fund, the European Commission and the European Central Bank, known as the troika — was palpable.Before taking office, Mr. Tsipras and Syriza campaigned on the economic hardship wrought by austerity in Greece yet also tapped into the widespread sense of democratic aggrievement. Public resentment against representatives for the country’s three creditors — the International Monetary Fund, the European Commission and the European Central Bank, known as the troika — was palpable.
Last November, the previous center-right government, led by the New Democracy Party, was forced by representatives of the troika to weaken a law the government passed to help ordinary citizens pay off overdue tax obligations. The troika had demanded the change after concluding that the new law, while easing the burden on hard-hit taxpayers, would damage Greece’s efforts to pay down its debt. The atmospherics were undeniably embarrassing — an elected prime minister forced to amend his own legislation on orders of European bureaucrats. Mr. Tsipras, in campaign mode, pounced, and during the later election campaign vowed to restore “sovereignty” and end dealings with the troika.Last November, the previous center-right government, led by the New Democracy Party, was forced by representatives of the troika to weaken a law the government passed to help ordinary citizens pay off overdue tax obligations. The troika had demanded the change after concluding that the new law, while easing the burden on hard-hit taxpayers, would damage Greece’s efforts to pay down its debt. The atmospherics were undeniably embarrassing — an elected prime minister forced to amend his own legislation on orders of European bureaucrats. Mr. Tsipras, in campaign mode, pounced, and during the later election campaign vowed to restore “sovereignty” and end dealings with the troika.
“They don’t want ministers accountable to clerks,” said Stavros Lygeros, a political analyst in Athens, explaining Syriza’s line against the troika.“They don’t want ministers accountable to clerks,” said Stavros Lygeros, a political analyst in Athens, explaining Syriza’s line against the troika.
Now, Mr. Tsipras has been forced to backtrack on many promises, including his refusal to deal with the troika, even as his government continues to describe the four-month extension of the bailout program — often called “the memorandum” — as a victory that will allow Greece to regain a measure of sovereignty by pursuing its own program. Mr. Katrougalos, the government minister, said the agreement struck with Europe has a “constructive ambiguity.”Now, Mr. Tsipras has been forced to backtrack on many promises, including his refusal to deal with the troika, even as his government continues to describe the four-month extension of the bailout program — often called “the memorandum” — as a victory that will allow Greece to regain a measure of sovereignty by pursuing its own program. Mr. Katrougalos, the government minister, said the agreement struck with Europe has a “constructive ambiguity.”
“It is a text that allows different readings,” he said. “Our reading is that we are not applying the memorandum program. We are applying our agenda.”“It is a text that allows different readings,” he said. “Our reading is that we are not applying the memorandum program. We are applying our agenda.”
Europe has long wrestled with the limitations of the European Union’s federalist structure, as critics have argued that a “democratic deficit” exists because of a lack of direct accountability between institutions in Brussels or Frankfurt and European voters. Analysts say the economic crisis only compounded these imperfections, especially as member states became divided between creditors and debtors.Europe has long wrestled with the limitations of the European Union’s federalist structure, as critics have argued that a “democratic deficit” exists because of a lack of direct accountability between institutions in Brussels or Frankfurt and European voters. Analysts say the economic crisis only compounded these imperfections, especially as member states became divided between creditors and debtors.
Guntram B. Wolff, director of Bruegel, a Brussels-based policy institute, said the current European political model is not sustainable. Friday’s political theater, which saw the Greek program put to a vote in Germany and elsewhere, is the product of an unbalanced system that requires national parliaments to approve such European-level decisions. “It also too much pits one country against another, one national debate against another national debate,” Mr. Wolff said. “The biggest example is Germany against Greece.”Guntram B. Wolff, director of Bruegel, a Brussels-based policy institute, said the current European political model is not sustainable. Friday’s political theater, which saw the Greek program put to a vote in Germany and elsewhere, is the product of an unbalanced system that requires national parliaments to approve such European-level decisions. “It also too much pits one country against another, one national debate against another national debate,” Mr. Wolff said. “The biggest example is Germany against Greece.”
From the moment of Syriza’s victory in January, Mr. Tsipras and his supporters framed the win as a mandate to change Europe’s German-led austerity policies. Yet the argument that Greece’s election results meant the country had earned the right to set new terms to the bailout is unconvincing to many analysts.From the moment of Syriza’s victory in January, Mr. Tsipras and his supporters framed the win as a mandate to change Europe’s German-led austerity policies. Yet the argument that Greece’s election results meant the country had earned the right to set new terms to the bailout is unconvincing to many analysts.
“We voted for the situation to change, but there are still constraints,” said Theodore Pelagides, a senior fellow at the Brookings Institution, who said the elections merely provided a mandate for the new government to seek better terms. “If you rely on creditors, what do you expect? It is not the right of the voters to write off the debt. This is not democracy.”“We voted for the situation to change, but there are still constraints,” said Theodore Pelagides, a senior fellow at the Brookings Institution, who said the elections merely provided a mandate for the new government to seek better terms. “If you rely on creditors, what do you expect? It is not the right of the voters to write off the debt. This is not democracy.”
Greece’s finance minister, Yanis Varoufakis, who has been outspoken in demanding a new deal, told reporters on Friday that he had gotten a similar message during his negotiations with creditors. “I was told the first time I went to Europe that elections change nothing,” Mr. Varoufakis told the Greek news media. “You are in a program. You are in a memorandum. It was agreed between your government and the partners. You have to implement it.”Greece’s finance minister, Yanis Varoufakis, who has been outspoken in demanding a new deal, told reporters on Friday that he had gotten a similar message during his negotiations with creditors. “I was told the first time I went to Europe that elections change nothing,” Mr. Varoufakis told the Greek news media. “You are in a program. You are in a memorandum. It was agreed between your government and the partners. You have to implement it.”
It is a message that is not likely to be well received in Greece, nor in other economically hard-hit countries, where anger against austerity is rising. Throughout the week, analysts and politicians in Athens debated whether Mr. Tsipras would call a parliamentary vote on the new agreement before he decided instead to introduce it piecemeal, as pieces of legislation, beginning as soon as next week. Mr. Tsipras’s challenge in finding an accommodation with Greece’s creditors during the four-month extension has been made all the more daunting by a shortfall in projected revenue as tax collection has dropped in the last three months.It is a message that is not likely to be well received in Greece, nor in other economically hard-hit countries, where anger against austerity is rising. Throughout the week, analysts and politicians in Athens debated whether Mr. Tsipras would call a parliamentary vote on the new agreement before he decided instead to introduce it piecemeal, as pieces of legislation, beginning as soon as next week. Mr. Tsipras’s challenge in finding an accommodation with Greece’s creditors during the four-month extension has been made all the more daunting by a shortfall in projected revenue as tax collection has dropped in the last three months.
“Greece has emerged stronger and prouder from the negotiations,” Mr. Tsipras told his cabinet Friday night, describing the four-month extension as a “bridge agreement” to the launch of talks on reducing Greek debt. Amid renewed speculation about a third bailout for Greece, Mr. Tsipras ruled out the possibility. “The memorandums were abolished with the people’s vote in January,” he said.“Greece has emerged stronger and prouder from the negotiations,” Mr. Tsipras told his cabinet Friday night, describing the four-month extension as a “bridge agreement” to the launch of talks on reducing Greek debt. Amid renewed speculation about a third bailout for Greece, Mr. Tsipras ruled out the possibility. “The memorandums were abolished with the people’s vote in January,” he said.
Mr. Tsipras, 40, is maintaining solidarity among his party’s 149 members of Parliament, yet he is facing pockets of rebellion among disillusioned supporters. Yiannis Milios, an economic policy strategist for Syriza, co-wrote a critique of the bailout deal, posted Thursday on his Facebook page, in which he blamed the prime minister for surrendering too much. On Thursday night, a crowd of far-left, anti-establishment protesters held a demonstration against the deal that turned violent, with some cars burned and stores vandalized.“They are full of ideological obsessions that derive from the fact that they have historically been a left-protest party,” said Mr. Lygeros, describing the different blocs of Syriza supporters. “Now reality has hit them like a truck. They will be forced to grow up, rapidly. The question is whether they can do it in time.” Mr. Tsipras, 40, is maintaining solidarity among his party’s 149 members of Parliament, yet he is facing pockets of rebellion among disillusioned supporters. Yiannis Milios, an economic policy strategist for Syriza, co-wrote a critique of the bailout deal, posted Thursday on his Facebook page, in which he blamed the prime minister for surrendering too much. On Thursday night, a crowd of far-left, anti-establishment protesters held a demonstration against the deal that turned violent, with some cars burned and stores vandalized.
“They are full of ideological obsessions that derive from the fact that they have historically been a left-protest party,” said Mr. Lygeros, describing the different blocs of Syriza supporters. “Now reality has hit them like a truck. They will be forced to grow up, rapidly. The question is whether they can do it in time.”
At a civil courthouse in the Athens suburbs this week, a group of local citizens were staging a demonstration to prevent foreclosure hearings against defaulted homeowners. Nearly 50 people had overtaken the courtroom — the judge had not appeared — and were giving speeches about how democracy had been drained from Greece by the crisis. “We have vowed to be here until democracy comes back to Greece,” declared Petros Georgantopoulos, one of the speakers, as others cheered. “But democracy is not here yet.”At a civil courthouse in the Athens suburbs this week, a group of local citizens were staging a demonstration to prevent foreclosure hearings against defaulted homeowners. Nearly 50 people had overtaken the courtroom — the judge had not appeared — and were giving speeches about how democracy had been drained from Greece by the crisis. “We have vowed to be here until democracy comes back to Greece,” declared Petros Georgantopoulos, one of the speakers, as others cheered. “But democracy is not here yet.”
Most of the protesters had supported Syriza in the elections and said they understood that change could not come overnight. But they warned that their patience was not endless. “Even with this government, until we see things change at the legislative level,” said Fotini Kokoni, one of the protesters, “we will keep fighting at the citizen level.”Most of the protesters had supported Syriza in the elections and said they understood that change could not come overnight. But they warned that their patience was not endless. “Even with this government, until we see things change at the legislative level,” said Fotini Kokoni, one of the protesters, “we will keep fighting at the citizen level.”