In fact, in the past the US Congress passed legislation - the Brown
Amendment - requiring the US to oppose IMF agreements that do not exempt
health and education spending from IMF budget caps.

National Education Association Protests IMF Pressure on Teachers in Jamaica
http://www.justforeignpolicy.org/node/671


On Mon, Mar 30, 2015 at 2:46 PM, raghu <[email protected]> wrote:

> Exclude humanitarian spending from budget surplus requirements? I am
> surprised this has not been floated yet..
>
> Even the Eurocrats do not want people denied food, heating and
> electricity... One hopes..
> -raghu.
>
>
>
>
>
> On Mon, Mar 30, 2015 at 12:13 PM, Robert Naiman <
> [email protected]> wrote:
>
>> Suppose that we were only allowed to raise a single demand in the context
>> of the Troika-Greece confrontation. Suppose that the demand had to satisfy
>> the following properties:
>>
>> 1. It's winnable.
>> 2. Winning it would make a substantial difference to the well-being of a
>> bunch of people in Greece.
>> 3. The demand would be popular in Greece.
>> 4. The demand would be marketable in the West, something we could
>> organize a bunch of people around, such as labor leaders, health groups,
>> Members of Congress.
>>
>> What should the demand be?
>>
>> ---------- Forwarded message ----------
>> From: Mark Weisbrot, CEPR <[email protected]>
>> Date: Mon, Mar 30, 2015 at 9:06 AM
>> Subject: Are the European Authorities Destroying the Greek Economy in
>> Order to "Save" It?
>> To: [email protected]
>>
>>
>>      [image: CEPR logo]
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=BzgzWIjlU8Bgzf78mLdr0fE%2Ba9uoRu6y>
>> Are the European Authorities Destroying the Greek Economy in Order to
>> "Save" It?
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=4SVN8gEJ%2FqOd7d%2BNGH9tI%2FE%2Ba9uoRu6y>
>>
>> By Mark Weisbrot
>> ------------------------------
>>
>> This article was published by Al Jazeera America
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=jTR5WXjWZJhnYtSJ1lva7PE%2Ba9uoRu6y>
>> on March 30, 2015.
>> ------------------------------
>>
>> There is a tense standoff right now between the Greek government and the
>> European authorities – sometimes known as the Troika because it includes
>> the European Commission, the European Central Bank (ECB), and the
>> International Monetary Fund (IMF). ECB President Mario Draghi denied
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=gL%2FG2qsUjw%2F5HBb4dH96t%2FE%2Ba9uoRu6y>
>> this week that his institution is trying to blackmail the Greek government.
>>
>> But blackmail is actually an understatement of what the ECB and its
>> European partners are doing to Greece. It has become increasingly clear
>> that they are trying to harm the Greek economy in order to increase
>> pressure on the new Greek government to agree to their demands.
>>
>> The first sign that this was the European authorities’ strategy came on
>> February 4 -- just 10 days after the Syriza government was elected -- when
>> the European Central bank cut off
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=3iQOt3qFbln54Lp5mZ3ybfE%2Ba9uoRu6y>
>> the main source of financing for Greek banks. This move was clearly made in
>> bad faith, since there was no bureaucratic or other reason to do this; it
>> was more than three weeks before the deadline for the decision.
>> Predictably, the cut off spurred a huge outflow of capital from the Greek
>> banking system, destabilizing the economy and sending financial markets
>> plummeting. More intimidation followed, including a slightly veiled
>> threat
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=7J2DBkBlhAYztf5%2Fu6yamPE%2Ba9uoRu6y>
>> that Emergency Liquidity Assistance – Greece’s last credit lifeline from
>> the ECB – could also be cut. The European authorities appeared to be hoping
>> that a “shock and awe” assault on the Greek economy would force the new
>> government to immediately capitulate.
>>
>> It didn’t work out that way. The Syriza party had a mandate from the
>> Greek electorate to improve their living standards after six years of
>> Troika-induced depression and more than 25 percent unemployment. The new
>> Greek government backed off its demand for a debt “haircut,” and made other
>> compromises, but wasn’t going to simply surrender as if there had been no
>> election. The European authorities finally blinked on February 20 and
>> agreed to grant a four month extension, through June, of the prior
>> “bailout” agreement – the quotes are necessary because most Greeks have not
>> been “bailed out,” but rather thrown overboard, having lost more than 25
>> percent
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=1lGlmLxtAKzoIrhmIaGiMvE%2Ba9uoRu6y>
>> of their national income since 2008.
>>
>> The immediate condition for the February 20th agreement was that the
>> Greek government present a list of reforms that they would undertake, which
>> they did, and which European officials approved. Remaining issues were to
>> be negotiated by April 20th, so that the final installment of IMF money –
>> some 7.2 billion euros – could be released. One might assume that the
>> February 20th agreement would allow these negotiations to take place
>> without European officials causing further immediate and unnecessary damage
>> to the Greek economy. One would be wrong: a gun to the head of Syriza was
>> not enough for these “benefactors;” they wanted fingers in a vise, too.
>>
>> And they got it. The ECB refused to renew the Greek banks’ access to its
>> main, cheapest source of credit that they had before the January 25
>> election. And they refused to lift the cap on the amount that Greek banks
>> could loan to the Greek government – something that they did not do to the
>> previous government. The result has been to create a serious cash flow
>> problem for both the government and the banks. Because of the ECB’s credit
>> squeeze, the government could soon find itself in a situation that the 2012
>> government faced when it delayed payments to hospitals and other
>> contractors in order to make debt payments; and it could even face default
>> at the end of April.
>>
>> The amounts of money involved are quite trivial for the European Central
>> Bank. The government has to come up about 2 billion euros of debt payments
>> in April. The ECB has recently shelled out 26.3 billion euros to buy
>> eurozone governments’ bonds as part of its 850 billion euro quantitative
>> easing
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=YXtpomq%2BUK4ZfFTv%2F7i9O%2FE%2Ba9uoRu6y>
>> program over the next year and a half. The ECB’s excuses for causing this
>> cash crunch in Greece ring hollow: for example, it argues that banks under
>> the previous government didn’t have to have the limit that the ECB is
>> imposing on banks now, because the prior government had committed to a
>> reform program that would fix its finances. But so has this one.
>>
>> It could hardly be more obvious that this is not about money or fiscal
>> sustainability, but about politics. The European authorities want to show
>> who is boss. And also, this is a government that they didn’t want. And they
>> really don’t want this government to succeed, which would encourage Spanish
>> voters
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=cHtS3xaHGBFqfVhfAjfFOPE%2Ba9uoRu6y>
>> to opt for a democratic alternative (Podemos) later this year.
>>
>> The IMF had projected
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=6GWZS81YA975Fg3G4RllsvE%2Ba9uoRu6y>
>> [PDF] the economy to grow by 2.9 percent this year, and until the last
>> month or so there was good reason to believe that – as in 2014, after years
>> of gross over-estimates – their forecast would be on target. This growth
>> would likely have kept Syriza’s approval ratings high, together with its
>> measures to provide food and electricity to needy households, and other
>> progressive changes. The ECB’s actions, by destabilizing the economy and
>> discouraging investment and consumption, will almost certainly slow
>> Greece’s recovery, and could also be expected to undermine the government’s
>> support.
>>
>> If carried too far, European officials’ actions could also inadvertently
>> force Greece out of the euro. It’s a dangerous strategy, and they should
>> stop undermining the economic recovery that Greece will need if it is to
>> achieve fiscal sustainability
>>
>>
>> Mark Weisbrot
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=i%2F6jlqkJdTFrU3Evyp4Bp%2FE%2Ba9uoRu6y>
>> is co-director of the Center for Economic and Policy Research, in
>> Washington, D.C. and president of Just Foreign Policy
>> <http://org.salsalabs.com/dia/track.jsp?v=2&c=%2FpGV6XeCww29HB7pgEy0vHCnx272yRRh>.
>> He is also the author of the forthcoming book *Failed: What the
>> "Experts" Got Wrong About the Global Economy* (Oxford University Press,
>> 2015).
>>
>> More from CEPR
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