Cancel Greek Debt civil society letter to EWG and Eurogroup
19 May 2016 by CADTM , War on Want , Eurodad , Jubilee Debt Campaign , CNCD , Ecologistas en acción , Debt and Development Coalition Ireland , Bretton Woods Project , Attac Finland , Attac Ireland , Both Ends , Ekumenická Akademie , Enabanda , Erlassjahr.de , Entwicklung braucht Entschuldung , European Network on Debt and Development , European Information Human Rights Centre , Společenství Práce a Solidarity , Zukunftskonvent
CC - Dennis Jarvis
For the attention of members of the Eurogroup and the Eurogroup Working Group,
In autumn last year, some of our organisations handed over a petition supported by 53 organisations in 15 European countries and signed by over 100,000 individuals calling for the cancellation of Greek debt. It also called for an end to forced austerity policies, and new global rules to resolve debt crises promptly, fairly and with respect for human rights. We are therefore glad to see that addressing the Greek debt problem has finally been placed on the agenda. We are, however, concerned about the draft proposals that were presented at the last Eurogroup meeting on May 9th. The debt reprofiling measures outlined do not go far enough to solve the Greek debt problem in a speedy and sustainable manner. The so-called contingency mechanism sidelines democratic decision-making procedures and would trigger a dangerous downward spiral when Greece is hit by economic shocks.
Furthermore, the three-pronged approach of different reprofiling options, including maturity extensions, is postponing the actual solution to the Greek debt crises until the distant future. We do not believe that this delay is in the best interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. of any legitimate party involved. On the contrary, this operation threatens to become another case of politically motivated procrastination, of “too little – too late” debt restructuring. Such procrastination has already caused a lot of harm in Greece, as well as in other debt crises around the globe.
The evidence from developing countries’ debt crises since the 1980s is that attempts to address debt overhangs through debt reprofiling have left countries burdened with unsustainable debts and have led to lost decades for development. Only actual haircuts managed to resolve the debt overhangs and restore growth. It is fair to conclude that the situation will not be different when it comes to Greece. We therefore reiterate our call that the major share Share A unit of ownership interest in a corporation or financial asset, representing one part of the total capital stock. Its owner (a shareholder) is entitled to receive an equal distribution of any profits distributed (a dividend) and to attend shareholder meetings. of Greek debt must be cancelled.
It is indeed unfortunate that the burden of such an operation might fall on the European taxpayers. This is obviously a consequence of previous decisions to move formerly private debt to public balance
Balance
End of year statement of a company’s assets (what the company possesses) and liabilities (what it owes). In other words, the assets provide information about how the funds collected by the company have been used; and the liabilities, about the origins of those funds.
sheets, to bailout banks with public monies. Several studies, most recently one by the European School of Management and Technology in Berlin, found that 95% of Troika
Troika
Troika: IMF, European Commission and European Central Bank, which together impose austerity measures through the conditions tied to loans to countries in difficulty.
IMF : https://www.ecb.europa.eu/home/html/index.en.html
loans have been used to repay old loans and bailout banks across Europe and even outside Europe. Given that, it is illegitimate to demand that the burden of repayment should be borne by the Greek citizens.
We, however, share the position expressed by several Finance Ministers that the Greek debt crisis should be solved in a way that minimises the costs for European taxpayers and public budgets. Therefore, we would also like to reiterate our call that money must be recovered from the banks which benefitted from the bailouts, in order to compensate the European financial instruments Financial instruments Financial instruments include financial securities and financial contracts. and finance the debt cancellation. The EWG (European Working Group) should immediately start to develop a technical proposal for this recovery operation.
We trust that the EWG will develop, and that the Eurogroup will endorse, a solution to the Greek debt crisis that reflects the EU’s core values, that respects democracy, promotes convergence and cohesion, and ensures human rights for all.
Yours sincerely
Attac Finland, Attac Ireland, Both Ends, Bretton Woods Project, CADTM - Committee for the Abolition of illegitimate Debts, Centre national de coopération au développement CNCD-11.11.11, Debt and Development Coalition Ireland, Ecologistas en Acción, Ekumenická Akademie, Enabanda, Erlassjahr.de – Entwicklung braucht Entschuldung, Eurodad - European Network on Debt and Development, European Information Human Rights Centre, Jubilee Debt Campaign UK, Společenství Práce a Solidarity, War on Want, Zukunftskonvent
Other articles in English by CADTM (73)
- Package of common demands on debt and the need for citizens’ control on finance at European level - Executive summar
3 August, by CADTM , Collective
- Immediate cancellation of South Asian debts!
8 June, by CADTM , Collective
- Call of the indigenous peoples, afro-descendants and peoples’ organizations of Latin America
3 April, by CADTM , Collective
- The CADTM supports the struggle of the Lebanese people to break away from social injustice and shake off the burden of illegitimate debt
10 March, by CADTM
- Crisis on the Greece-Turkish Border : let’s have done with Fortress Europe
7 March, by CADTM
- Political Charter of CADTM International
28 February, by CADTM
- Colombo declaration on illegitimate debt
27 February, by CADTM
- The International Monetary Fund (IMF): an ABC
26 February, by CADTM
- An ABC of the ailing World Trade Organization
18 February, by CADTM
- Kangemi Declaration
14 February, by CADTM
Other articles in English by War on Want (2)
- The Maghreb seminar proclaims: “No to colonial agreements, for the defence of people’s sovereign right on their agricultural, food and environmental systems.”
19 February 2018, by War on Want
- Dogmatic Development: Privatisation and conditionalities in six countries
7 April 2004, by War on Want , PSIRU
Other articles in English by Eurodad (11)
- A debt moratorium for Low Income Economies
27 March, by Eurodad , Daniel Munevar
- Out of service: How public services and human rights are being threatened by the growing debt crisis
25 February, by Iolanda Fresnillo , Eurodad
- History RePPPeated: How public private partnerships are failing
24 October 2018, by Collective , Eurodad , Latindadd , ODG (Observatorio de la Deuda en la Globalización)
- Debt justice prevails at the Belgian Constitutional Court: Vulture funds law survives challenge by NML Capital
6 June 2018, by Eurodad , CNCD , Antonio Gambini , Bodo Ellmers
- Why won’t the Bretton Woods institutions take crisis risks seriously?
27 April 2016, by Eurodad
- Rich country governments put national interests ahead of world’s poorest
22 February 2016, by Eurodad
- Influence of IMF and other IFIs in Central and Eastern Europe
17 November 2015, by Eurodad
- Eurodad report shows how IMF lending often makes crisis countries’ situations worse
11 April 2014, by Eurodad
- What’s the alternative?: Experts from across the world gather to discuss solutions to the debt crisis
9 April 2014, by Eurodad
- Norway takes a bold step towards debt justice: First creditor ever to carry out a debt audit
20 August 2012, by Eurodad
0 | 10
Other articles in English by Jubilee Debt Campaign (38)
- Poor countries cut public spending, debt payments trebled
17 January, by Jubilee Debt Campaign
- Crisis deepens as global South debt payments increase by 85%
9 April 2019, by Jubilee Debt Campaign
- Mozambique needs urgent action on debt crisis following Cyclone Idai
22 March 2019, by Jubilee Debt Campaign
- Mozambique files case against Credit Suisse in the UK
1 March 2019, by Jubilee Debt Campaign
- Climate scheme hands $105 million profit to global insurance industry
27 November 2018, by Jubilee Debt Campaign
- African governments’ debt payments double in just two years
8 October 2018, by Jubilee Debt Campaign
- Developing country debt payments increase by 60% in three years
22 March 2018, by Jubilee Debt Campaign
- The case for a household debt jubilee
7 March 2018, by Jubilee Debt Campaign , Sarah-Jayne Clifton , Damon Gibbons
- 10 key facts about debt in the UK
15 November 2017, by Jubilee Debt Campaign , Tim Jones
- Hidden debts contribute to crisis in Congo
18 October 2017, by Jubilee Debt Campaign
Other articles in English by CNCD (2)
- Debt justice prevails at the Belgian Constitutional Court: Vulture funds law survives challenge by NML Capital
6 June 2018, by Eurodad , CNCD , Antonio Gambini , Bodo Ellmers
- CNCD, CADTM and 11.11.11 Against Vulture Funds
29 September 2016, by CNCD
Other articles in English by Debt and Development Coalition Ireland (2)
- From Puerto Rico to the Dublin Docklands, Vulture funds and debt in Ireland and the Global South
27 March 2017, by Debt and Development Coalition Ireland
- A Global Justice Perspective on the Irish EU-IMF Loans: Lessons from the Wider World
23 December 2010, by Debt and Development Coalition Ireland
Other articles in English by Bretton Woods Project (22)
- IMF and World Bank complicit in ‘austerity as new normal’, despite availability of alternatives
12 February, by Bretton Woods Project
- World Bank’s women entrepreneur initiatives just “smoke and mirrors”
30 August 2019, by Bretton Woods Project
- Ukraine: Between a rock and IMF conditionality
16 October 2018, by Bretton Woods Project
- Greece exits loan programme as impacts of Troika-led austerity are revealed
9 October 2018, by Bretton Woods Project
- The political cost of IMF programmes
17 August 2018, by Bretton Woods Project
- As World Bank signals end of extraction finance, CSOs call for end to its other fossil fuel funding
10 April 2018, by Bretton Woods Project
- After 15 years, World Bank’s Doing Business Report still missing the mark
13 March 2018, by Bretton Woods Project
- IMF lending freeze “pushing Tunisia to the brink”
11 April 2017, by Bretton Woods Project
- World Bank IDA18 to introduce increased reliance on capital markets
9 February 2017, by Bretton Woods Project
- The rise and fall of World Bank funded megaprojects
3 February 2017, by Bretton Woods Project
Other articles in English by Erlassjahr.de (1)
- Global Sovereign Debt Monitor 2019
29 May 2019, by Erlassjahr.de , Jürgen Kaiser
-
Immediate cancellation of South Asian debts!
8 June - CADTM, Collective -
Time For A Renewed Anti-Debt Movement
1 June - Eric Toussaint, Beverly Keene, Lidy B. Nacpil, Dorothy Guerrero -
Nepal needs Total Debt Cancellation to face the Covid-19 Crisis
23 April - Praman Adhikari -
Cancel the debt
23 April - Mustafa Talpur -
CSOs Call to International Creditors of Bangladesh
10 April - Collective
-
Lessons in what not to do
30 July - Costas Lapavitsas -
Olivier Bonfond : Eric Toussaint’s latest publication, Capitulation entre adultes, Grèce 2015: une alternative était possible is a “must read” for everybody
30 June - Olivier Bonfond -
Capitulating to adults
31 May - Michael Roberts -
A book that reads almost like a thriller
11 May - Philippe Poutou -
The Greek tragedy: Act Three
27 April - Michael Roberts
-
A boot is crushing the neck of American democracy
2 June - Cornel West -
“Business as usual” at Socfin and Bolloré...
26 May - CADTM France, Collective -
A Feminist Strike against Debt
18 May - Verónica Gago, Luci Cavallero -
Cancel the debt so doctors and nurses can keep saving lives
7 May - Collective -
Citizen Action is Central to the Global Response to Covid-19
27 April - Walden Bello, Isabel Ortiz
CADTM
COMMITTEE FOR THE ABOLITION OF ILLEGITIMATE DEBT
35 rue Fabry
4000 - Liège- Belgique
00324 226 62 85
info@cadtm.org
