Issue link: https://maltatoday.uberflip.com/i/537300
maltatoday, SUNDAY, 5 JULY 2015 15 and the opposition on this issue. "I may understand that there may be an ideological dimension on the part of the centre-right National- ist Party and to some extent the Labour Party but I still cannot un- derstand why Maltese politicians have taken such a hard line," the Ambassador said. He is even more surprised by the Maltese government's hawk- ish stance in view of the positive relations between the two counties and the solidarity shown by Greece towards Malta in the past. "Greece, which has been an EU member since 1981 was fully sup- portive of EU membership for Malta even when other countries were more interested in eastward expansion." The Greek ambassador is taken aback by any suggestion that it was Greece which has shut the door on the other EU member states after Greek PM Tsipras, called for a ref- erendum. He blames this percep- tion on "dirty media wars". "The Greek government was seeking an honest and viable com- promise to make it possible for the Greek economy to start recover- ing by making the debt sustainable and by healing some of the wounds inflicted on Greek society." He also admits that the Greek government was making "huge concessions" in its bid to reach an agreement with its European partners. One of the biggest con- cessions consisted in accepting an increase in the VAT rate applica- ble in Greek islands. Some of these islands have long benefitted on a special VAT rate 30% lower than elsewhere, which offsets the high cost of having to ship basic every- day goods long distances. While the EU institutions demanded that the increase in VAT is implement- ed immediately, the Greek gov- ernment wanted to postpone the increase by three months, to avoid penalizing inhabitants during the peak of the tourist season. So what was the straw which broke the camel's back? The ambassador insists that what led Tsipras to go back to the Greek people was the final proposal made by the institutions which demand- ed further reductions in pensions and salaries. He points out that while the in- stitutions refused a Greek propos- al to increase taxes on those with higher incomes, they wanted the Greek government to cut pensions and salaries. "They told Prime Minister Alexis Tsipras to take it or leave it. It was an ultimatum and the Prime Min- ister had no choice but to go back to Athens to seek the advice of his cabinet. The cabinet decided that the proposals made by the institu- tions would end up promoting re- cession instead of recovery." Ultimately it was for this reason that the Greek government has asked the Greek people to express themselves through a referendum. "Greece never abandoned the table of negotiations but the gov- ernment wanted to give a say to the Greek people who have to live through the consequences of whatever the Greek government signs to." Politicians in Europe, includ- ing the Maltese Prime Minister, have referred to the referendum as an irresponsible decision. But Daskarolis defends the democratic legitimacy of the referendum. "What could be more responsi- ble for a government than to heed the advice of its own people? I can't understand why we are be- ing called irresponsible simply be- cause we are asking the people to determine whether they are will- ing to accept the conditions being imposed on us." He compares the Greek govern- ment to a father or mother ask- ing for the opinion of other family members before taking a major fi- nancial decision. "I am obliged to ask for the opin- ion of other family members before selling the house in which they live. For they will have to live with the consequences of my actions." I point out to the Greek am- bassador that senior European politicians like Italian PM Matteo Renzi have said that on Sunday the Greek people will be choosing be- tween the euro and the return of the drachma in the referendum. Daskarolis insists that the referen- dum question is clear and unam- biguous and is a choice between accepting what is currently on of- fer or negotiating a better deal with the European institutions. "The referendum is not on whether Greece should remain in the eurozone or in the European Union. It is on whether we agree with the latest proposals made by the institutions." For the Greek ambassador the Greeks have two options in the referendum. "If they vote no to the proposals made by the institutions, the gov- ernment will continue finding a sustainable solution with our Euro- pean partners. If the Greek people accept the proposals, the govern- ment will work with its partners to implement these proposals." But what will happen if the oth- er European governments insist that by voting no the Greeks are shutting their door on Europe? Wouldn't this mean that Greece would be effectively out of the Eu- ropean Union? The Greek ambassador replies with another question. "Do you believe that the interna- tional system can endure Europe without Greece? The EU without Greece is simply unthinkable." He also points out that there is no mechanism in place through which a country can be forced to exit the eurozone. What worries the Greek ambas- sador most is that the roots of the rift between European govern- ments and Greece are "political" and "ideological" and not eco- nomic. He agrees with Nobel laure- ate Joseph Stigliz, who previously served as chairman of President Bill Clinton's Council of Economic Advisers and as Senior Vice Presi- dent and Chief Economist of the World Bank, that the true nature of the ongoing debt dispute, "is about power and democracy much more than money and economics". He believes that some influential circles in Europe are simply inter- ested in preserving their political prestige and their ability to impose on Europe austerity policies, which are being used to punish rather than help the Greek people. He reminds these circles that with Syriza Europe has an inter- locutor with whom it can negotiate and which has a mandate to nego- tiate – a mandate which would be reconfirmed in the referendum. Asked whether Syriza had prom- ised the impossible at the election when it promised to end auster- ity, the ambassador replies by noting that the party, which now governs in coalition with a right wing conservative party (ANEL) has exclusively focused on realis- tic proposals aimed at tackling the humanitarian crisis. "Although it is a left wing party, Syriza has not proposed a change of the economic system. It is very realistic and is focusing on cor- recting the mistakes of the past and promoting growth friendly policies." Despite being sidelined in meet- ings with fellow European govern- ments, the Greek government does not feel isolated. "Greece already enjoys the sup- port of European civil society and the solidarity of prominent politi- cians and intellectuals." He refers to the contributions of former German chancellor Helmut Schmidt. economists Paul Krugman and Joseph Stigliz, screenwriter and director Jean Luc Godard, former Italian Prime Minister Massimo D'Alema, and philosopher Jurgen Habermas who have all criticised the way Euro- pean institutions have dealt with Greece. He also welcomes Pope Francis' declaration, when he invited the faithful to pray for the "beloved Greek people" while adding that the "dignity of the human person must remain at the centre of any political and technical debate". Daskarolis remains optimistic and refuses to accept the 'doom and gloom' scenario which is being conjured up to scare the Greeks into voting yes. He insists that the European Union and Greece must find a way forward after the refer- endum. "To those who say that Greece has no future in the eurozone if they vote no I say that in politics one cannot ever say never… After the referendum the sun will still rise and the EU and Greece will continue to exist… they are des- tined to be together. We speak of a globalised world. How can we imagine a European Union with- out Greece?" Interview With unemployment in Greece currently at 27%, with many of those employed not even getting paid, Greek ambassador to Malta Theodoris Daskarolis describes the country's situation as that of a patient being given a debilitating medicine de Greece sicker TO THE BANKS' RESCUE Malta and other European countries were forced to lend money to Greece for the sake of saving private German, French, Dutch and other banks which were exposed to the Greek debt In Greece pensioners earning €300 to €400 a month are supporting their jobless children ROLES REVERSED