Fear and Loathing on the Greek Campaign Trail

If you took away the cordon of riot police surrounding the building, you could be mistaken for thinking you'd stumbled upon the annual conference of South Jersey importer and exporter association sponsored by a fraternal organisation with its roots in Southern Italy. Made men with large cigars and even larger bellies flowed out of the hall and in between them mingled guys who looked like they made their living doing door duty in third rate provincial "nightclubs. All wearing shades, all unshaven, all willing to take offence at anyone whose gaze lingered upon them any longer than was absolutely necessary.

The latest stop of the PASOK party's 2014 EU election campaign had rolled into town, not that anyone apart from the party nomenclature and a few dozen protesters had noticed. Instead of the mass public rallies that in the past attracted hundreds of thousands of the party faithful, Sunday's event was a part of the new trend towards stealth electioneering, attended by a few hundred local functionaries behind closed doors and lines of riot police.

This is in sharp contrast to the campaigns I witnessed in the late 80's and 90's in which leaders of both the socialist PASOK and the conservative New Democracy parties could count on huge turnouts that would flood the centre of Greece's cities, literally a sea of people as the Greek saying goes. People were gripped by an almost religious fervour and you would have thought rock stars had come to town rather than elderly politicians. However those days have gone and in all likelihood will never return, the victim of changing times and most lately, the six year long economic crisis which is proving as severe as that suffered by the US in the Great Depression. 



The ongoing commitment of successive governments to spending cuts, public sector job losses and tax hikes have all but destroyed PASOK and severely wounded its traditional rival, New Democracy. (PASOK, which is now calling itself Olive Tree is now polling between 10 - 15% of its 2009 strength and new Democracy share of the vote has been cut by half). The leaders of both coalition parties dare not risk public appearances unless they are held incognito or under the tightest security, outdoor events having been replaced with tightly choreographed televised shows as is the case with prime minister Antonis Samaras's rare public outings.

The latest revelations in the Financial Times about how EU leaders egged on the then finance minister (and PASOK leadership rival) Evangelos Venizelos to depose Greece's prime minister, Giorgos Papandreou in 2011 after he proposed a referendum on the terms of the bailout deal has just added to public mistrust of the country's political leadership, widely perceived to be more interested in preserving their own hold on power than defending national interests.

Such a feeling is likely to drain still further support for both government parties and make the chances of the coalition staying intact still less likely. With goes the two party system which has dominated Greek politics since the 1980's and a network of corruption, pork barrel politics and crony capitalism which led the country into its present dire state.

No More lies - Greece

No More lies - Greece, a photo by Teacher Dude's BBQ on Flickr.

With the crisis dragging on in Greece, voters are growing ever more angry at the lies and spin the government coalition parties employ to distract from their corruption, incompetence and lack of vision for the future.

In May the country will vote in both local authority and European parliamentary elections and if current opinion polls prove correct, then this mark that end of the monopoly on power the nominally socialist PASOK and far right New Democracy parties have held since the late 70's.

PASOK in particular, is likely to hardest hit with possibility that its share of the vote will be as low as 4%, a startling decline from the 44% it won in the 2009 general elections. New Democracy's base is also shrinking as people,sick of austerity and endless finance scandals turn their back on them, many changing allegiance to the neo-Nazi Golden Dawn party .

The position of the two main parties is not helped by the fact that between them they have 270 million euros in non-performing loans, which have been serviced since January 2013, making them technically bankrupt.

With the prime minister announcing new taxes on food, property and cigarettes, the chances that his New democracy party will fall from second place to third place behind SYRIZA and Golden Dawn should not be ruled out.

Whatever the final tally is poor results in May's elections will further increase pressure by party supporters and backbench MPs on PM Antonis Samaras and deputy PM Evangelos Venizelos to step down, so opening the way to more instability and the possibility of new national elections in the summer.

Despite crisis good times still roll for Greek MPs

Antonis Samaras is currently doing the rounds in Europe, attempting to persuade fellow EU leaders that Greece needs two more years to fulfil the obligations required to receive the country's next installment of cash to avoid bankruptcy. Samaras has even personally guaranteed that Germany will be repaid in full, though how intends to do this is another matter, unless there is a secret coda in Steve Job's will that no one has been aware of till now.

On the other hand The PM's attempt to prove the Greece has changed and become a more fiscally responsible country have been undermined by even high ranking members of his own government, who upon being elected to parliament seemingly appointed to state jobs just about every member of their extended family not in jail or the grave. Case in point being New Democracy heavy weight, Vyron Polydoras, who secured a government job for his daughter after Greece's first national elections in May. Polydoras was also involved in a scandal during the Karamanlis administration after he used his position as minister for public order to have them transferred to his own offices.

However, this misuse of parliamentary privilege is not limited to New Democracy as such moves have been made PASOK, Independent Greeks and Golden Dawn MPs, with a total of 150 extra employees being added to the public payroll at a cost of nearly 3,000,000 euros annually.

At first sight such nepotism and pork barrel politics would seem to give fodder to Greece's foes in Europe who argue that Athens refuses top take reforms of its bloated state sector seriously. However, such accusations ignore the fact that these abuses are the preserve of the those at the top of Greece's deeply corrupt political system. For ordinary Greeks, the cuts in spending are very real indeed. A telling example is that while 187,000 people registered as jobless receive unemployment benefit (usually less than 400 euros a month), 734,000 do not. Hardly evidence of profligate welfare spending and for those who remain unemployed for more than 12 months there is little in the way of financial assistance form the State.


The irony of the situation is that during Greece's deeply divisive dual elections in summer much of the European political leadership and the financial establishment across the world exerted as much influence as it could muster to shore up support for New Democracy and Antonis Samaras, and in doing so helped maintain the corrupt political empires that helped Greece get so deeply into debt in the first place. 

Δεκάδες Ελληνες υπουργοί συνιστούν την Siemens - Dozens of Greek ministers recommend Siemens

Δεκάδες Ελληνες υπουργοί συνιστούν την Siemens - Dozens of Greek minister recommend Siemens, originally uploaded by Teacher Dude's BBQ.

ξέπλυμα χρήματος μέχρι και στο μισό χρόνο.
Αυτόματη αναγνώριση όλων των κομμάτων


Launder your money in half the time or less!
Automatic recognition of all parties.

Yet another political scandal gets swept under the carpet by the Greek parliament. Today it was the Siemens corruption case involving accusations that the company spent millions in bribes to PASOK and New Democracy party officials in return for contracts for the 2004 Athens Olympics.

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.

Corruption? That's a Greek problem. Would never happen here.

Following Greece's descent into economic crisis much was made of the fact that corruption is part and parcel of Greek public life. Many newspapers abroad woke up to the fact that much of the country's ruling political class is both venial and corrupt and that irrespective of what ideological colours they profess to wear bribe money speaks louder than either Adam Smith or Karl Marx when it comes to how they wield power.

It was the perceived endemic corruption of both PASOK and New Democracy that lead to their previous electoral defeats in the last three general elections. The widely held idea that politicians are untrustworthy and easily bought was one of the main factors behind the massive protests that have taken plac recently in Athens and other Greek cities. When hundreds of thousands of citizens chant, "thieves thieves" outside parliament then even the most hardend advocate of the present system has to admit that public trust in the current political system is at an all time low.

It would be very easy to see the problems as a purely Greek one, the result of local pathologies and which do not apply further afield. However, today a story broke which shows that corruption and influence peddling are just as easily practiced by those abroad as those inside.

The British tabloid The News of the World has broken a story which could have been written especially for Greece, yet this time the person invoved has a far more aristocratic pedigree than any politician here. The news that Sarh Ferguson, the ex-wide of Prince Andrew, son of Queen Elizabeth II had been filmed eliciting money in return for ensuring access to her former husband shows that money still talks whoever you are. The newspaper set up a sting operation in which Ferguson was filmed pocketing $40,0000 in cash from a reporter posing as a foreign businesman, part of a half a million dollar deal that would supposedly allow him access to the prince.

Of course I'm sure there is a perfectly reasonable explanation for taking the money after all, this is England and not some backward Balkan state. Ferguson is royalty and not some grubby politician who demands wads of cash in return for commercial favours. Not the same at all, is it?

Do you feel grateful? You've got to be kidding, right?

Just got off the phone with the BBC. I got a phone call earlier today asking if I would like to take part in a discussuion on the their Have Your Say programme and I said that I would be delighted to take part, especially after the BBC employee me asked me why Greeks were not feeling more grateful about the recent bailout deal. People here have a number of reactions to the EU-IMF brokered deal but gratitude is certianly not one of them. Anger, outrage, frustration and fear are far likely to be quoted but no one, and I mean no one I have heard discuss the matter considerd the current situation something to celebrate.

This seemed to puzzle some of the other participants on Have Your Say and many of the listener who sent in emails. Perhaps this stems from the fact apart from the raw economic facts people living outside Greece have only the vaguest idea of how things work here and how big a shock the present crisis is to people throughout the country. As I said to the presenter imagine being mugged and then being asked to contribute to your mugger's legal costs, which is basically what many Greeks are feeling at the moment.

Whilst everyone here is aware of the extensive faults of the Greek government (we live them daily) and the problems with graft and waste the the sheer size of the deficit created by the past two government's came as much as a surprise to ordinary people here as it did to the world's financial markets. Now it seems that the two major parties have not just sold off the family silver but mortgaged the future of the whole nation for at least a generation the mood of seething anger lies over the country like some kind of toxic fug.

How did it come to this? Where did all that money go? How come the country owes so much? are just some of the questions on everyone's lips. Now those who are responsible for getting the country into this "death spiral" as the BBC put it are now calling for a joint national effort to pay off an impossible mountain of debt. I swear that if the leader of either PASOK or New Democracy made a public appearence at the moment they'd be lucky to escape a lynching by a baying mob.

A measure of the fear that the present administration feels over the strength of popular resentment that it announced the fact that the country was going to go to the EU-IMF from the island of Kastellorizo which about as far away from Athens as it far to get and still remain in Greece. This is akin to Gordon Brown announcing the most regressive social measures in a generation from the Outer Hebrides.

Judgement day for Greece

Today Greek prime minister will announce the full details of the deal that it has negotiated with the EU-IMF-ECB over the conditions of the bailout package. So far the media here have been coy about saying what exactly the agreement contains but the general consensus is that it will include painful cuts across the board in terms of pay and conditions in both the private and public sector. In addition there are likely to be large job cuts as many civil service positions are axed.The most likely tactic will be a change from permanent contract to fixed term ones which when they run out will not be renewed.

As well as cuts in income Greeks are also going to be hit by yet another round of rises in VAT and other indirect taxes (the second in six months). Already the local public tranport authority here in Thessaloniki has announced 20-100% increase in bus ticket prices.

As you can imagine there is a lot of popular anger from people affected by these measures and this is likely to fuel a wave of protests and strikes in the coming months. Already the Greek communist party (KKE), which is the third largest has delared that it will fight the austerity package and is calling on workers to raise up. Other groups are also oganising different ways to try and fight against the government's plans with direct action and protests which have been scheduled for the coming week.

While everyone in Greece agrrees that the present situation is dire and things cannot continue as before they are bitter and angry that the very same politicians who failed to avert the present economic crisis either due to incompetence, corruption or indifference are now calling upon ordinary Greeks to make sacrifices. This would be a steep order for any country even in the best of circumstances but giving the extreme corruption of Greece's ruling political and economic nomenclenture none of country's leaders retains the moral stature necessary to convince people to take the difficult steps that lay ahead.

THe ruling PASOK party headed by Giorgos Papandreou has done little to clean up ts own house when it comes to graft and influence peddling and despite court cases in Germany and the UK, the scandals its senior members were involved in during their last term in power have yet to result in any criminal charges being brought against those involved here. On the other hand the newly elected leader of the defeated New Democracy, Antonis Samaras heads a party whose members presided other one of the worst periods of corruption in Greek history yet few have even been fired let alone been the subject of a court trial.

What people are enraged about is that such incompetence and corruption is likely to be repeated since no one is in a position to put a stop to the pevious abuses of power. The judiciary is little more than an extension of whoever is in power and can be ignored at will while the media is suppine in the face of the temptation of rewards from those in power in the form of state jobs, contracts and advertising revenue. Sometimes it seems that the news here is a choice between a Hellenic version of Fox News or Pravda, with very little objective reporting.

The clashes witnessed in Athens during May Day are likely to be repeated in the following days as the general strike this week is going to a catatlyst for people's rage and frustration.