Tsipras Rejects Bailout Extension

In a speech yesterday before Greece’s Parliament, which greeted him warmly, Prime Minister Alexis Tsipras announced, categorically, that he would not request an extension of the bailout, which EU governments had demanded, stating instead that it was the “irrevocable decision” of his government to implement its campaign promises “in their entirety.”

Preliminary reports of the speech quote the Greek Prime Minister firmly stating that an extension of the bailout is unacceptable, as this would constitute “an extension of mistakes and disaster.” His government, he said, would instead request some kind of “bridging loan” with its creditors, to tide the country over, until a “mutually acceptable agreement” can be reached with creditors, ekathimerini.com reported yesterday evening.

The government’s chief priority, Tsipras stated,
“is tackling the big wounds of the bailout, tackling the humanitarian crisis, just as we promised to do before the elections.”
The bailout failed, he said.

Reuters reported him as saying. Greece would achieve balanced budgets, he added, but would no longer produce unrealistic primary budget surpluses.

The British news service, by the way, grumbled that Tsipras “showed little intent to heed warnings from EU partners to stick to commitments in the 240 billion-euro bailout.” The London Guardian characterized his speech as “defiant,” while the Huffington Post said he was setting himself up for an “EU Clash.”

According to ekathimerini.com, Tsipras announced a series of steps to begin to reverse the “barbarous measures” imposed by the Troika. These include offering free electricity and food to poor households and immediately rehiring civil servants who had been fired. Violating reforms made by the previous government as a condition for receiving bailout money, Tsipras announced that collective bargaining would be restored, and the minimum wage raised to 751 euros a month from 586 euros, although this would happen gradually into 2016.

As a revenue-raising measure, he announced a new tax on large properties, a crackdown on tax evasion and corruption, and cutting the use of government cars and planes by ministers and MPs. He intends to raise the tax-free income threshold to 12,000 euros from the current level of 5,000, and to introduce a fair tax system. Other measures include reopening ERT public television, which was abruptly closed in 2013 as a “cost cutting” measure. He vowed to launch a parliamentary investigation to determine how Greece entered the Memorandum. While he indicated that the government welcomed private investment, ekathimerini.com reported, he announced that privatizations were off the table, emphasizing that utilities were not for sale.

“We see hope, dignity and pride returning to Greek citizens. Our obligation and duty is not to disappoint them… We realize that negotiations [with foreign creditors] won’t be easy… but we have faith in our struggle, because justice is on our side.”