James K. Galbraith on 23 February 2015 in "Reading The Greek Deal Correctly":

"To understand the issues actually at stake between Greece and Europe, you have
to dig a little into the infamous “Memorandum of Understanding” signed by the
previous Greek governments. A first point: not everything in that paper is
unreasonable. Much merely reflects EU laws and regulations. Provisions relating
to tax administration, tax evasion, corruption, and modernization of public
administration are, broadly, good policy and supported by SYRIZA. So it was not
difficult for the new Greek government to state adherence to “seventy percent”
of the memorandum.

The remaining “thirty percent” fell mainly into three areas: fiscal targets,
fire-sale privatizations and labor-law changes. The fiscal target of a 4.5
percent “primary surplus” was a dog as everyone would admit in private. The new
government does not oppose privatizations per se; it opposes those that set up
price-gouging private monopolies and it opposes fire sales that fail to bring in
much money. Labor law reform is a more basic disagreement – but the position of
the Greek government is in line with ILO standards, and that of the “programme”
was not. These matters will now be discussed. The fiscal target is now history,
and the Greeks agreed to refrain from “unilateral” measures only for the
four-month period during which they will be seeking agreement."

Background:

Questions about the legality of the Troika
ETUI News, 21 March 2014
http://www.etui.org/News/Questions-about-the-legality-of-the-Troika

Since the outset of the financial and economic crisis, some EU Member States,
under the pressure of the ‘Troika’ composed of the European Commission, the
European Central Bank (ECB) and the International Monetary Fund (IMF), have been
pursuing a strict retrenchment or austerity policy on the basis of Memoranda of
Understanding (MoUs).

These MoUs, negotiated by the Troika, contained detailed timetables for
austerity measures and structural reforms, to which the countries had to adhere
in order to receive the relevant credit tranches.

The legal basis for this action by the European Commission and the ECB, as part
of the Troika, is debatable. Indeed, is European law applicable to the financial
crisis emergency? Are the European institutions in signing these MoUs bound by
the fundamental (social) rights the European Union, according to its Treaties,
adheres to and which fundamental and human rights, if any, are affected by the
MoUs?

These fundamental questions are at the heart of the legal opinion delivered by
Prof. Fischer Lescano from the University of Bremen, on the request of the
Labour Chamber Vienna, the Austrian Trade Union Federation (ÖGB), the ETUC and
the ETUI. A sound legal investigation brings clarification of the respective
responsibilities and accountability. It further demonstrates that EU
institutions are fully bound by Union law and that within the framework of the
Troika they are obliged to act in accordance with fundamental rights, which,
under Article 51 of the Charter of Fundamental Rights of the European Union,
apply at all times.

This legal opinion reiterates the concerns expressed by the ILO Committee of
Freedom of Association as well as the European Committee of Social Rights of the
Council of Europe, who, having examined complaints on austerity measures taken
in Greece within the framework of the international loan mechanism agreed upon
with the Troika, both concluded upon the violation of a range of fundamental
social rights as anchored in the ILO Conventions and in the Revised European
Social Charter.

full paper:
http://www.etui.org/content/download/13817/113830/file/Legal+Opinion+Human+Rights+in+Times+of+Austerity+Policy+%28final%29.pdf

also availble as:
Fischer-Lescano, Andreas (2014): Human rights in times of austerity policy. The
EU institutions and the conclusion of memoranda of understanding. Baden-Baden:
Nomos.
http://dx.doi.org/10.5771/9783845253534

Abstract:
As members of the Troika, the European Commission and the European Central Bank
are bound by EU primary law, which includes the Charter of Fundamental Rights.
The Memoranda of Understanding concluded by the Troika therefore have to be in
conformity with the European system of competences and human rights. The
Memoranda of Understanding impact on fundamental rights, such as the human right
to housing and social security, the human right to health and rights steaming
from the European labor constitution. Specific examples are interference in
medical care (higher charges on prescription drugs) and in the wage bargaining
systems of individual states, thus eroding tariff autonomy. This raises
fundamental questions of human rights conformity. Moreover, because the European
Parliament is not involved, it is questionable whether the measures observe the
principle of democracy and the EU’s system of competence. --


Summary of main conclusions of a Legal opinion commissioned by the
Chamber of Labour, Vienna, in cooperation with the Austrian Trade Union
Federation, the European Trade Union Confederation and the European Trade Union
Institute:

1. The European bodies and institutions are bound to comply with EU law even in
the financial crisis. There is no state of emergency that suspends EU law. In
their own institutional interests, the EU institutions must take vital social
issues affecting Union citizens seriously.

2. The Commission and the ECB have fundamental rights obligations under
international human rights codifications and customary international law as well
as the CFR. The essential obligations are derived in particular from the CFR,
the ECHR, the UN Social Covenant, the RESC and the ESC.

3. Through their involvement in the signature of the MoUs, the ECB and the
Commission are encroaching on many of the rights protected by those norms.
Although MoUs cannot formally be regarded as international law within the
meaning of Article 38(1) of the ICJ Statute, as sui generis legal acts they
encroach on rights protected by those codifications.

4. Through their involvement in the negotiation, signature and implementation of
the MoUs, the EU institutions are infringing primary law. They are acting
unlawfully. Specifically, the following rights are being breached:

rights to freedom to choose an occupation, freedom of collective bargaining and
remuneration for work under Articles 27 to 32 CFR in conjunction
with Articles 1 to 6 and 24 RESC, Articles 6 to 8 UN Social Covenant, Article 11
ECHR, Article 27 UN Disability Convention and the ILO core labour standards;

the human right to housing and social security under Article 34 CFR in
conjunction with Articles 12 und 13 RESC, Articles 9 und 11 of the UN Social
Covenant and Articles 2, 3, 8 and 14 ECHR;

the human right to health under Article 35 CFR in conjunction with Article 11
RESC, Article 12 of the UN Social Covenant, Articles 2, 3 und 8 ECHR and Article
25 of the UN Disability Convention;

the human right to education under Article 14 CFR in conjunction with Articles 9
and 10 RESC, Article 2 Protocol 1 ECHR, Article 13 UN of the Social Covenant,
Article 24 of the UN Disability Convention and Article 28 of the UN Convention
on the Rights of the Child;

the human right to property under Article 17 CFR in conjunction with Article 1
Protocol 1 to the ECHR and the right to good administration under Article 41 CFR
in conjunction with Article 6 ECHR.

The encroachments cannot be considered justified, for the following reasons:
[...]"
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