Strasbourg, 08/07/2015 (Agence Europe) - The speech of Greece's Prime Minister Alexis Tsipras at the European Parliament in Strasbourg on Wednesday 8 July roused strong debate among MEPs, who were divided on how to remedy the Greek crisis (see EUROPE 11353).
Many MEPs showed their impatience at the Greek government's lack of readiness to put forward an ambitious reform package in exchange for new financial aid from the European Stability Mechanism (ESM). The eurozone has been given until 12 July to find an agreement - without which the scenario of a Greek exit from the eurozone could become a reality.
Much applauded, but also jeered, upon his arrival at the European Parliament, Tsipras said he “hoped” his country could respond to the creditors' demands before the deadline of Sunday 12 July that has been set to reach an agreement on new financial aid to Athens. “Don't let Europe divide” and let us act “in the interest of Greece and the eurozone”, said Tsipras, implying that the Greek crisis was not only an economic issue but also a geopolitical one.
In Tsipras' view, “what is called the Greek crisis is a collective inability of the eurozone to find a solution to a debt crisis. It's a European problem” for which “a European solution is needed” to avoid “a historic break”.
Without denying his country's need for reform to fight against clientelism and tax evasion, Tsipras, the leader of Greece's extreme left Syriza movement, said he believed the previous bailout plans had failed. “For five years, my homeland has been a laboratory for austerity, but the experience has not been a success”, despite “the enormous effort at adjustment” that has been made, he said. In Tsipras' view, the efforts which will result from the third aid package (the request for which was formally sent to the ESM by the Greek authorities on Wednesday morning) will have to be supported by those that have the means for them. Reiterating the “strong mandate of the Greek people” that has been granted him following the 'no' victory in the Greek referendum, Tsipras said he was determined “to break, not with Europe, but with the established interests and mentalities that have hammered Greece and are in the process of hammering the eurozone with it”. He gave assurances that he had “no hidden agenda” that aimed to make his country leave the eurozone.
On Tuesday, European Council President Donald Tusk stated that the eurozone had set “the end of the week” as the deadline for reaching an agreement, or otherwise “the worst scenario” would be triggered. He listed the basic principles that will enable an upward exit from the crisis: “respect each other”; “morality means paying off the debt you owe to others - it's not that the creditors are bad and immoral while the debtors are the innocent victims”; “seek help among your friends when they are ready to help, not among your enemies - especially when they are unable to help you”; “if you want to help your friend in need, don't humiliate him”. Without unity, “we will wake in four days in a different Europe”, Tusk warned.
On behalf of the European Commission, its president Jean-Claude Juncker said that the break-up of negotiations had been a mistake and that they must be resumed. Advocating a language of truth, he gave assurances that the Commission had never proposed reducing small pensions or small salaries. He reiterated that €35 billion in financial aid had been put on the table to stimulate the Greek economy, and that this would be released should there be an agreement between Athens and its creditors.
Manfred Weber attacks Tsipras. Very critical of the Greek prime minister, Manfred Weber (EPP, Germany) recalled the need to honour the principles of partnership and respect. He spoke about the nauseating statements from members of the Greek government - especially as regards the flow of refugees which will pour into the EU if Europe does not pay, and the finance ministers being compared to terrorists. “Why have you not apologised for these statements”, Weber hit out at Tsipras. Weber criticised the Greek government on many areas: the lack of concrete proposals; the erosion of trust between the European leaders; the lies uttered to the Greeks on the debt and the re-opening of the banks. Weber, who leads the EPP Group, noted that the prime minister of Slovakia had spoken of the idea of a referendum because people have had enough of paying for the Greeks.
Gianni Pittella tries to depoliticise the debate. Gianni Pittella (S&D, Italy) wanted to calm the situation after the booing and applause caused by Weber's statement. “Europe does not exist without Greece. The extremists and speculators playing at the expense of Greece and Europe must be opposed”, he said. He hailed the serious and constructive spirit with which Juncker is working to find a solution to the crisis. The European institutions must not be divided but united because this is not the future of a political party that is being played out, but the future of Europe, Pittella, who leads the S&D Group, stated, strongly opposed to any idea of a 'Grexit'.
In order to reach a solution, there is a need for “the Greek government's commitment to reforms”, Pittella said. He added that it was fair to speak of restructuring the Greek debt (possibly in the framework of a European conference on debt), and of tabling ideas for a redemption fund to manage excessive public debt, and for a partial pooling of the debt.
The representative from the ECR Group said he thought there was something “rotten” in Greece and in the EU. In his view, there will be losses to assume.
ALDE Group furious. “I'm furious! You talk about reforms but we don't see them materialise”, Guy Verhofstadt (ALDE, Belgium) hit out dramatically at Tsipras. The risk is real, we are heading towards the 'Grexit' and it is the Greeks who will pay the price, he warned. Verhofstadt, who leads the Liberals, asked Tsipras to put forward a credible package of reforms within 48 hours, with a roadmap and deadlines: put an end to clientelism (“you are using the system”, Verhofstadt even added with regard to the appointments made by the government); streamline the public sector (which has over 800,000 on its payroll); transform the public banks into a healthy private financial sector; open up markets and jobs (access to a dozen or so professions); end the privilege of ship owners, the military, the Church, the Greek islands and political parties (Syriza benefits from a public bank loan). At the European level, “a sustainable solution for the whole eurozone” must be put forward, Verhofstadt said, who is in favour of a European redemption fund and a partial pooling of the debt.
Gabriele Zimmer (GUE/NGL, Germany) asked Weber to stop being arrogant and playing the schoolmaster. She stressed the need to find sustainable solutions and to respect the decision of the Greek people after the referendum.
Rebecca Harms (Greens/EFA, Germany) said that Tsipras was in a historical situation. There has never been a prime minister so strong in Greece and he needs to lead the Greek people to accept the reforms, she said. Harms advocates a fairer fiscal policy and a fairer retirement system. “The wrongful policy of debt has to be broken with” and a global solution found, she said.
Extreme right says “nai” to a Grexit. In the view of Nigel Farage (EFDD, UK), the deep divisions between the north and south of Europe which are coming to the surface show that the European project “is beginning to die”. In his opinion, the euro is the new Berlin Wall.
On behalf of the new Europe of Nations and Freedom Group, Marine Le Pen from France said she believed the ECB had suffocated the Greek banks. Greece must exit from this “iron machine” of the euro, she said, convinced that the single currency was “not irreversible”. (Lionel Changeur with MB)