Socialist Worker

Greek bailout money goes back into the bosses’ pockets

by Dave Sewell
Issue No. 2461

German economics minister Sigmar Gabriel

German economics minister Sigmar Gabriel (Pic: Christliches Medienmagazin on Flickr)

Europe’s bosses are still determined to crush any attempt by Greece to break with austerity.

German economics minister Sigmar Gabriel said the No vote had “torn down the last bridges on which Greece and Europe could have moved towards a compromise”. 

But the Institutions—the European Union (EU) and the International Monetary Fund (IMF)—were never interested in compromise. 

They painted Greeks as “feckless” and “lazy”. 

The German special envoy to Greece claimed in 2012 that it took 3,000 Greek workers to do the work of 1,000 Germans. 


The money Greece receives goes straight back into the pockets of bankers who loaned it. 

That’s where the roots of the crisis lie.

German bosses suppressed workers’ wages in the 2000s.

This built up a huge surplus of cash—so they loaned the money to southern European countries. 

This kept profits coming in from German exports. 

But this made Greece particuarly exposed when the crisis hit.  

The bankers began jacking up their interest rates, sending the debt soaring.

The same banks were bailed out during the crisis.

Greek workers have suffered under austerity—they should default on the debt. 


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Tue 7 Jul 2015, 18:07 BST
Issue No. 2461
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