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The call for a Referendum on 5 July by the Greek Prime Minister Alexis Tsipras is not only about the Greek population voting on the proposed reforms needed to receive bailout loans from other eurozone countries and the International Monetary Fund. It is also a major wedge in the whole current European project wanted by the “five Presidents” of the EU (Commission, Council, Eurogroup, Parliament, and Central Bank). Why? Last Monday (June 22) they published their report “Completing Europe’s Economic and Monetary Union” (EMU). Just four days after, three of its objectives are severely questioned by the upcoming Greek referendum.

Firstly the Presidents’ report states “all members of our Monetary Union have given up their previous national currencies once and for all, and permanently share monetary sovereignty with the other euro area countries”. Leaving the Eurozone and going back to national currency was said to be impossible on Monday. On Saturday, Eurozone finance ministers made their conclusions without the Greek minister and said that the decision to hold a referendum had closed the door on the chances of a deal to save Athens from default and a possible euro exit. This is not the worst: the whole idea that no other country can go back to previous currency is no longer a certainty. The Greek situation could trigger domino’s reactions in the whole Eurozone, depending on economic difficulties or market pressures. Solidarity within the EU is jeopardised. Member states focus now on how to ring-fence Greece and protect the rest of the Eurozone from any potential economic shocks ahead.

Secondly the Presidents’ report asserts that “a complete EMU is not an end in itself. It is a means to create a better and fairer life for all citizens” – Can we consider that Greek citizens have had a better life in the last five years? According to the Greek Finance Minister, since 2009 “wages contracted by 37 per cent, pensions by up to 48 per cent, state employment by 30 per cent, consumer spending by 33 per cent (…) unemployment skyrocketed to 27 per cent, undeclared labour scaled 34 per cent”. If I add that youth unemployment is at 50%, and the level of poverty is at 37,5% of the population, the notion of better and fairer life for all citizens is highly questionable. There is still a long way to go before “the EMU to succeed, labour markets and welfare systems function well and in a fair manner in all Euro area member states”, as stated in the report. For that purpose, the Commission will have to come quickly with concrete proposals « to ensure that every citizen has access to an adequate education and that an effective social protection system is in place to protect the most vulnerable in society, including a ‘social protection floor’ ». Social progress should have been strengthened in Greece and in all member states to avoid current major social divergence in the EU.

Finally the reports stresses that the “quick fixes of recent years need to be turned into a lasting, fair and democratically legitimate basis for the future” – so I wonder why a democratic referendum and the consultation of the Greek Parliament were perceived by the Eurogroup on Friday night as a “closing the door on the chances of a deal to save Athens from default and a possible euro exit”? Why the EU expresses its opposition to a referendum? Torn apart between the mandate given to him to end austerity when elected in January and the proposals by the creditors to cut on low pensions and increase VAT, the Greek Prime Minister Alexis Stipras called on his fellow citizens ”to decide – with sovereignty and dignity as Greek history demands – whether we should accept the extortionate ultimatum that calls for strict and humiliating austerity without end, and without the prospect of ever standing on our own two feet, socially and financially”. Respecting its national democratic process, yesterday, Greece’s parliament voted in favor of holding a July 5 referendum. I have to say that i am quite uncomfortable when a democratic process is questioned by the EU. In fact, we have been calling for many years for more transparent and democratic process in the Economic governance. If it had been done earlier, maybe we would not be at that stage.

When I read the Presidents’ report, I can only conclude that Greece should not be left alone, but be the first test case of the implementation of the mentioned objectives of the EU project : no going back to previous currency, fairer and better life, and more democratic decision making.

Let’s engage !

Pierre Baussand, Director of Social Platform