Greece: Is an extension of the Loan Agreement not an extension and recognition of the MoU (Mnimonio)?

Vasilis Giavris (Lawyer & Political Scientist)

The Greek Government has today received a four (4) month extension to the Master Financial Assistance Facility Agreement (“the MFAFA”).

The MFAFA was entered into in 2012 and contains terms and condition Vis-à-vis loans to Greece*. The MFAFA makes reference to various memorandum agreements (past and future) all together referred to as Memorandum of Understanding (“MoU”) The MoU contain specific terms and conditions to be followed by Greece in regard to various areas including fiscal policy.

The original agreement precluded funds to be disbursed subsequent to 31 December 2014. However, the previous Greek government sought a two (2) month extension and as such funds could be disbursed up until 28 February 2015 (in this regard a new MFAFA Second Amendment Agreement was entered into**).

The new Greek government has watered down its previous rhetoric and by letter dated 18 February 2015, it requested a further extension, stating amongst other that: “The Greek authorities honour Greece's financial obligations to all its creditors as well as state our intention to cooperate with our partners in order to avert technical impediments in the context of the Master Facility Agreement which we recognise as binding vis-a-vis its financial and procedural content” ***.

The Greek government insists that the agreed extension relates to the extension of the MFAFA and not the MoU («μνημόνιο») and as such is keeping its word to the public (ending the mnimonio).

Food for Thought

Clause 7 in the MFAFA states that: “The availability and the provision of Financial Assistance under this Agreement,…….shall, unless otherwise specified, be conditional upon (i) the Beneficiary Member State's compliance with the measures set out in the MoU and..”.

Today's Eurogroup Statement**** (approved by Greece) amongst other states:

"The Eurogroup notes, in the framework of the existing arrangement, the request from the Greek authorities for an extension of the Master Financial Assistance Facility Agreement (MFFA), which is underpinned by a set of commitments The purpose of the extension is the successful completion of the review on the basis of the conditions in the current arrangement, making best use of the given flexibility which will be considered jointly with the Greek authorities and the institutions. This extension would also bridge the time for discussions on a possible follow-up arrangement between the Eurogroup, the institutions and Greece. ".It further states that: "The Greek authorities reiterate their unequivocal commitment to honour their financial obligations to all their creditors fully and timely". 

Is an extension of the Loan Agreement not an extension and recognition of the MoU (Mnimonio) albeit with the ability to make mutually agreed changes to the current arrangement? Was this not the case anyway?  

*http://www.efsf.europa.eu/attachments/efsf_greece_fafa.pdf

**http://www.efsf.europa.eu/…/Second%20Amendment%20Agreement%…

***http://www.reuters.com/…/eurozone-greece-request-idUSL5N0VT…
****http://www.consilium.europa.eu/en/press/press-releases/2015/02/150220-eurogroup-statement-greece/

“Post Truth” Politics: The Need For New Political Leadership in Greece

by Vasilis Giavris (Lawyer & Political Scientist)

The end of “metapolitfsi” marks a turning point from one epoch to the next. With it, the landscape of power in Greece has changed. Increasingly, voices stemming from the far right & left, in conjunction with those from the various political charlatans who claim “parthenogenesis”, are dominating the political agenda gaining a ‘legitimacy’ previously denied to them.

Offering an over-simplistic analysis full of vitriol, prejudice and fear mongering their polemical rhetoric promotes a policy of distraction and a misplaced rage that marginalizes rational discourse. Such voices serve as a smokescreen designed to achieve their sole objective – polarize the Hellenic people and maintain or obtain political power.  What they express is a brutalism motivated by misanthropy, obsession and compulsion.

Welcome to the “post truth” era. Language is used to deceive, entrap and polarize. When a large amount of people peddle fantasy as fact our society loses it’s grounding to reality. But the burden of today should not be used as an excuse to trample democratic principles, human rights and the rule of law. Tyranny can take many forms. We must not replace one form for another.

Today the “language of truths” remains to be spoken. This is the language that we must seek. As Hellenes we must protect, respect and honor our cultural and historical past. However, it is imperative that we do not become or remain victims of such past.

The word “παράδοση” inherently involves an acceptance, respect and understanding of previous knowledge, customs and heritage developed and adopted by our forefathers. However it does not end there. It is not enough to understand and respect our past. We must build on it for the future. Hellenism is a living organism. We need to “δόση” which entails to hand over. What we need to hand over is an amalgamation of the sum of our past, our struggles of today and our vision of the future.

So where are the voices of truth? Where can we turn? Why aren’t ordinary concerned citizens forming new political parties in Greece? Reform will not be brought by the existing parties who hold seats in parliament. They are part of the dysfunctional system. Reform can only be achieved bottom up – from each and every one of us.

Now is the time for new hope and possibility. The Hellenic people need to replace the politics of fear with post-partisan reform. We must incorporate a new sense of direction where human needs are placed at the forefront of government policy. Where a balance between individualism and collectivism is sought and achieved and individual rights co-exist with communal expectations.

Now is the time to learn from Isocrates and understand that a democracy destroys itself when its citizens abuse their right to freedom and equality, when its citizens are encouraged to consider insolence as a right, illegality as freedom, offensive speech as equality and anarchy as bliss.

Now is the time for a new political leadership that will stand up for all Hellenes and offer a rational vision of rebuilding Greece. A broad based alliance that will oppose the new grammar of power that seeks to distinguish between creditor and debtor states. That will oppose neo-colonialism in the form of German Euro-nationalism.

Greece needs to come of age, to show independence of mind and spirit, to forge its own destiny. We cannot continue to be a “quasi democracy” where decisions about Greek citizens are made by foreign governments. The German “Bundestag” must no longer decide the fate of Greece. The fate of Greece must rest with the Hellenic people for it is the Hellenic people that are the custodians of sovereign power.

We must not loose faith. On the contrary, let’s get active!

Vasilios Giavris

President
Hellenic Democratic Initiative

The road to Asia Minor….

By Vasilis Giavris (Lawyer & Political Scientist)

Ignorance of the past is wrong. Even worse is the systematic misinterpretation of the present for motives untoward and party political gains. The promise of a better future must be accompanied by realistic steps and certainty in its achievement. Current political maneuverings and the politics of hate serve only to retain the established status quo - both that of the major parties that have maintained and abused governmental authority and power but also those in the periphery that have in perpetuity retained parliamentary seats in exchange of hollow rhetoric and unrealistic solutions.

We are in the midst of a tragedy. We must not forget this. By ceding the initiative all political parties are choosing to react to public outcry by placing themselves in a position to maximise future electoral gains. Every decision adopted whether pro-bailout or anti-bailout is reactive and made with the electoral landscape in mind. In doing so, politicians have once again chosen to compromise the future of the Greek people.

The people require the honest truth and the truth of the current situation is simple. Greek society is in deep paralysis. The political parties elected to represent their constituents have refused to unify in the face of adversity. Given the current realities, Greece requires a unified multi-party government. A government that is able to immediately implement some of the beneficial provisions contained in the bailout agreements (i.e. tax reforms, drastic changes to legal system and certain privatisations) whilst simultaneously providing a unified front to renegotiate those measures that are both oppressive and offer no stimulus for growth - measures that have only been included to punish the Greek people for alleged sins of the past (i.e. drastic pension/wage cuts etc.,).

Our elected politicians must not lose sight of Aristotle's belief in "prudence" as a paradigm. They must "visualize" the future when deciding to act. A future that is attainable, that acknowledges and learns from the ills of the past. A future that seeks to strengthen democratic institutions and contribute towards the true prosperity of Greece and its citizens as opposed to fulfilling party political or personal agendas.

The road to Asia Minor has been previously treaded. There is a case to be made for the need not to repeat it.