Summary of the 1 March 2016 session at the European Parliament “Restructuring of debt – reconstruction of democracy”

Video: Maria-Lucia Fattorelli: “Before anything else can be done, there must be a debt audit”

17 March 2016 by Maria Lucia Fattorelli


Several members of the Greek Debt Truth Committee (GDTC) attended the session on 1st March 2016 at the European Parliament in Brussels on the topic “Restructuring of debt – reconstruction of democracy”.

The session was organized by Nikolaos Chountis, Vice-minister of the first Tsipras government (January-July 2015) and MEP representing Popular Unity since September 2015, replacing Manolis Glezos. The conclusions of the GDTC’s report enabled the participants to throw new light on the diktats imposed on Greece by creditors and the European authorities.

Here we propose to take a closer look at the contributions of four of those present. Maria-Lucia Fattorelli, member of the GDTC and coordinator of the Citizens’ Debt Audit in Brazil.

Maria-Lucia Fattorelli: “Before anything else can be done, there must be a debt audit”

Maria-Lucia Fattorelli decodes the debt system. It is an illegitimate process, rife with corruption, that functions as an instrument designed to transfer resources to the financial sector to the detriment of State economies. The debt system means permanent interference from the IMF IMF
International Monetary Fund
Along with the World Bank, the IMF was founded on the day the Bretton Woods Agreements were signed. Its first mission was to support the new system of standard exchange rates.

When the Bretton Wood fixed rates system came to an end in 1971, the main function of the IMF became that of being both policeman and fireman for global capital: it acts as policeman when it enforces its Structural Adjustment Policies and as fireman when it steps in to help out governments in risk of defaulting on debt repayments.

As for the World Bank, a weighted voting system operates: depending on the amount paid as contribution by each member state. 85% of the votes is required to modify the IMF Charter (which means that the USA with 17,68% % of the votes has a de facto veto on any change).

The institution is dominated by five countries: the United States (16,74%), Japan (6,23%), Germany (5,81%), France (4,29%) and the UK (4,29%).
The other 183 member countries are divided into groups led by one country. The most important one (6,57% of the votes) is led by Belgium. The least important group of countries (1,55% of the votes) is led by Gabon and brings together African countries.
alongside other financial administrations, aiming to promote creditors’ privileges.

In the case of Greece, Maria-Lucia Fattorelli evokes two mechanisms that have particularly generated debt: the creation of financial instruments Financial instruments Financial instruments include financial securities and financial contracts. with Goldman Sachs “swaps” deals; and the European Financial Stability Facility (ESFS).

Her sound experience in Latin America enables Maria-Lucia Fattorelli to draw a parallel between the current situation in Greece and that of Brazil, Argentina or Ecuador under the Brady Plan in the 1990s.

To access complete coverage of this session, use the following link:

And contributions of :

- Zoe Konstantopoulou : “The Greek Debt Truth Committee’s final report scared the creditors.”
- Eric Toussaint : “The Greek public debt crisis is a web of lies”
- Cephas Lumina: “The Paris Club has no legitimacy”

Translated by Vicki Briault and Mike Krolikowski (CADTM)

Maria Lucia Fattorelli

member of the Committee and coordinator of the Brazilian Citizens’ Debt Audit Commission. Since the 4th April 2015 she is member of the Truth Committee on Public Debt.

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