"We are powerful and we will soon be dominant": Golden Dawn's intimidation in the courtroom

How can Greeks ever be sure of justice for neo-Nazi crimes?

Your porno TV channels called me guilty. I will rub the court's decision in your face. We are powerful and soon we'll be dominant.

These were the words last week of Ilias Kasidiaris, second in command of the Greek neo-nazi party Golden Dawn, after leaving the court where was acquitted of being an accessory to the bodily harm and armed robbery of a student in 2007.

In a courtroom occupied by Golden Dawn supporters who wouldn't allow "others" to sit and who would throw abusive remarks at the victim and the witnesses through their teeth, the atmosphere was tense. The few non-Golden Dawn attendees who managed to get hold of a seat, speak of a trial in which the judge lost control early on and the defence was allowed to pressure witnesses and cast doubt over the charges that Kasidiaris had helped those who attacked the student flee in his car. His licence plate number appeared to place him at the scene, but the jury thought different.

Kasidiaris's lawyer argued that users of the Indymedia website had "targeted" him by publishing his license plate number. The claim was supported by the sole testimony of a journalist. No print-out or link to the post was provided.

Was this really enough to convince the jury, or did intimidation play a role? 

"People with long hair were checked before entering the room," one of those present, who prefers to remain anonymous, tells me.

On the contrary, the Golden Dawn guys who had swamped the room from early on, were free to roam in and out unchecked. During the trial Kasidiaris's lawyer was allowed to put on a show, bombarding the witnesses with questions, interrupting their answers and on occasion kept them on the stand after the judge had told them to stand down.

This account points to a phenomenon many have suspected for some time: when it comes to Golden Dawn, Greece's judicial system is unable to enforce proper procedure.

This doesn't only happen with Golden Dawn: less than a month ago, eight policemen were acquitted of attacking and severely injuring a student, despite there being video footage of the incident. But it's the cases involving neo-Nazis that truly shock. In September, a member of the party died in Sparta after a bomb blew up in his hands. (His desired target is still unknown.) An accomplice was arrested, 60 more bombs were found in his house, yet he was allowed to walk free by order of the state prosecutor and the case has since vanished from our radar. It's this same body that failed to rule Golden Dawn illegal when the racist, violent character of the party and its bloody past became known to all.

Kasidiaris, who came to international attention last year when he physically attacked an opposition MP on live TV, was acquitted. But the court was also guilty of something far worse: not protecting witnesses and attendees from pressure and intimidation. According to my source:

After leaving the court, I saw 3-4 guys with shaved heads standing next to the police, taking pictures of anyone who came out of the court. I walked away to avoid being targeted.

How can one seek out justice for the transgressions of the far-right when the police so blatantly disregard the safety of the public? Some Golden Dawn supporters have been arrested and convicted of violent crimes, when they have been caught red-handed. But the party's leadership openly encourages, aids and even perpetrates violence, yet goes unpunished. This atmosphere of impunity will only further discourage witnesses from testifying.

What sort of message does this send, and will Greeks who demand justice ever get to see a system that can deliver it?

Golden Dawn's Ilias Kasidiaris (centre) leaves court in Athens on 4 March. (Photo: Getty.)

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

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Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

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