Has the sun set on Golden Dawn?

Whatever the crackdown against Golden Dawn means for Greece, the hope is now rekindled that the EU might be starting to see the rise of the far right as the threat that it is.

More than 20 members of the Greek neo-Nazi party Golden Dawn were arrested in late September. This unprecedented crackdown on the far right followed public outrage at the murder of the anti-fascist musician Pavlos Fyssas, known as Killah P, by a self-proclaimed Golden Dawn member. Greece’s public prosecutor labelled the party a criminal organisation and among those arrested were its leader, Nikos Michaloliakos; his deputy, Christos Pappas; the spokesman Ilias Kasidiaris; the press officer Ilias Panagiotaros; and the man touted to be the link between the parliamentary team and the party’s activists, Ioannis Lagos.

The public prosecutor’s report links Golden Dawn to multiple offences, including trafficking, kidnapping, money laundering and extortion, but the main charges remain those of multiple accounts of murder, attempted murder and aggravated assault. The prosecutor argues that the party’s strict, almost military structure strongly suggests that every hit was carried out as a result of orders from higher up.

The testimonies of two ex-members paint a picture of hardcore groups undergoing special-forces-like training in order to carry out brutal, sometimes deadly, attacks on leftists and immigrants.

The Greek government’s reaction might seem to imply it has woken up to the truth about Golden Dawn’s practices, but in reality the government’s hand was forced by pressure from Brussels following the murder of Fyssas.

In Athens people are feeling pessimistic. This is for two reasons. On the one hand, two Golden Dawn MPs, Kasidiaris and Panagiotaros, were released on bail, a first for anyone charged with helping to lead a criminal organisation. As Anny Paparousou, a Greek lawyer with expertise in the field, told me, “This will definitely shift the weight of the trial to their favour when the time comes, as they will walk in as free men.”

Prime Minister Antonis Samaras is reportedly furious at the public prosecutor for his decision and insiders say he almost sacked two ministers over the incident. Many analysts now believe that Greece won’t see the convictions many wish for. That the name of one of the witnesses under protection was accidentally leaked to Kasidiaris shows how hastily everything was put together. A positive result for Golden Dawn would cement the party’s support for years to come.

On the other hand, Chrysanthos Lazaridis, a senior adviser to the prime minister, has stated that Golden Dawn and Greece’s leading left-wing party, Syriza, are “the same thing”, hinting that leftists and anarchists will face persecution, too.

Elsewhere in Europe, as in Greece, the best bet for defeating far-right extremism will be to deal not only with openly fascist groups but also with those that paved the way for parties such as Golden Dawn by legitimising hellish detention camps for immigrants, by prosecuting activists in Skouries simply for opposing the destruction of their natural environment, and by adopting racist rhetoric to try to win back right-wing voters.

Whatever the crackdown against Golden Dawn means for Greece, the hope is now rekindled that the EU might be starting to see the rise of the far right as the threat that it is.

It is shameful that the Greek government and the European leadership have pretended they didn’t know what was happening. Now, they have run out of excuses.

Members of the Greek far-right ultra nationalist party Golden Dawn (Chryssi Avghi) demonstrate outside the Turkish consulate in the northern Greek city of Thessaloniki during the visit of the leader of the Turkish ultra-nationalist group Grey Wolves, Devl

Yiannis Baboulias is a Greek investigative journalist. His work on politics, economics and Greece, appears in the New Statesman, Vice UK and others.

This article first appeared in the 11 October 2013 issue of the New Statesman, Iran vs Israel

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump