The Greek Government Is Fighting Against Planned Financial Ruin


The Finance Minister, Yanis Varoufakis, would rather give insufficient funds to the IMF than cut wages.

Finding itself short of cash, the Greek Government may not be able to pay the IMF in full at its next repayment deadline. Meanwhile, the creditors are still demanding that Tsipras turn his back on his election promises.

Suffocate Greece until it gives in. After four months of negotiation and delaying repayments, the creditors of Athens are tightening their grip, hoping to pressure the left wing President into breaking his campaign promises. But rather than giving in to the orders of wage cuts, a reform sanctioning the instability of the job market and cuts to the pension system suggested by the European Commission, the IMF and the European Central Bank (ECB), the Greek Government may fail to repay the IMF in full at the next deadline. Greece must repay € 1.5 billion in total, with four deadlines between the 5th and 19th of June. Athens has until October to pay back nearly €10 billion to its creditors, principally the ECB (€ 6.7 billion). At the end of April, the government, being short on cash, requisitioned the treasury reserves of public entities in order to pay pensions and civil servant wages. As the bank accounts have been emptied, the government may choose not to pay at the next deadline, an unprecedented event in the Eurozone. On Monday, the Finance Minister, Yanis Varoufakis, stated very clearly that he would prefer to “underpay the IMF than cut wages” as, in his eyes, wages and pensions are an “absolute priority”. Yesterday, a spokesperson for Syriza, Nikos Filis, suggested the possibility of an underpayment in a televised speech “From this moment until the 5th of June, we are in a crucial period” he insisted, “If no agreement is made to solve the current financial problems, there will be no money”.

Read the rest of this translation of l’Humanité’s take on the latest phase of the assault on the Greek people on the website  l’Humanité-in-English  The website is regularly updated with translation from the French Communists’ daily newspaper and is well worth visiting.