Does Greece have "odious" debt?

Alexis Tsipras wants Greece to stop paying odious debt. But does it have any?

"My five point plan": a phrase borrowed from Ed Miliband* may have helped boost the chances of Alexis Tsipras, leader of radical left-wing Greek party SYRIZA, which stormed into second place in the Greek parliament.

Admittedly, the Tsipras plan is rather more radical than Miliband's. It calls for:

  • Cancelling the technocratic former government's bailout terms, particularly its cuts to pensions and salaries.
  • Overturning their abolition of collective bargaining and other laws that attack workers' rights.
  • Changes to improve democracy and social justice, from removing MPs immunity to prosecution to overhauling Greece's proportional electoral law.
  • A public review of Greek banks.
  • A hold on all debt servicing, and an international committee examining the Greek deficit, particularly looking at whether any of the debt can be termed "odious".

The last point is the most interesting one. Odious debt is a legalistic term: It refers to debt run up by a former dictator, which a legitimate successor government can realistically argue ought not to be paid off. As a paper in the Duke Law Journal (via alphaville) puts it:

By enshrining a doctrine of odious debts as a recognized exception to the rule of state succession, some modern commentators have argued, a successor government would be able legally to repudiate the loans incurred by a malodorous prior regime. This, they contend, would have two benefits: it would avoid the morally repugnant consequence of forcing an innocent population to repay debts incurred in their name but not for their benefit, and it would simultaneously force prospective lenders to an odious regime to rethink the wisdom of advancing funds on so fragile a legal foundation.

The authors of the paper point out the problem with such a concept, though:

If this new version of the odious debt doctrine is to be workable, someone must assume the task of painting a scarlet letter "O" on a great many regimes around the world. Who will make this assessment of odiousness and on what criteria? The stakes are high. An unworkable or vague doctrine could significantly reduce cross-border capital flows to sovereign borrowers generally.

Their fears are proved right by Tsipras' argument. For all that the imposition by the EU of a technocratic PM on the Greek people was questionable democratically, the resulting government was hardly on par with the last one which brought odious debt into the public arena: Saddam Hussein's.

Even if Tsipras is making the weaker claim that debt left over from Greece's junta, which collapsed in 1974, ought to be cancelled (if there is even any outstanding), he would be on questionable grounds legally. The whole argument seems far more likely to be a way to announce a selective default without actually announcing a selective default. That or a cynical ploy to get elected.

We'll see the final outcome next Thursday, when the next round of legislative elections are rumoured to be pencilled in for.

*Probably not.

Alexis Tsipras, head of SYRIZA, at a press conference in Athens. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The problems with ending encryption to fight terrorism

Forcing tech firms to create a "backdoor" to access messages would be a gift to cyber-hackers.

The UK has endured its worst terrorist atrocity since 7 July 2005 and the threat level has been raised to "critical" for the first time in a decade. Though election campaigning has been suspended, the debate over potential new powers has already begun.

Today's Sun reports that the Conservatives will seek to force technology companies to hand over encrypted messages to the police and security services. The new Technical Capability Notices were proposed by Amber Rudd following the Westminster terrorist attack and a month-long consultation closed last week. A Tory minister told the Sun: "We will do this as soon as we can after the election, as long as we get back in. The level of threat clearly proves there is no more time to waste now. The social media companies have been laughing in our faces for too long."

Put that way, the plan sounds reasonable (orders would be approved by the home secretary and a senior judge). But there are irrefutable problems. Encryption means tech firms such as WhatsApp and Apple can't simply "hand over" suspect messages - they can't access them at all. The technology is designed precisely so that conversations are genuinely private (unless a suspect's device is obtained or hacked into). Were companies to create an encryption "backdoor", as the government proposes, they would also create new opportunities for criminals and cyberhackers (as in the case of the recent NHS attack).

Ian Levy, the technical director of the National Cyber Security, told the New Statesman's Will Dunn earlier this year: "Nobody in this organisation or our parent organisation will ever ask for a 'back door' in a large-scale encryption system, because it's dumb."

But there is a more profound problem: once created, a technology cannot be uninvented. Should large tech firms end encryption, terrorists will merely turn to other, lesser-known platforms. The only means of barring UK citizens from using the service would be a Chinese-style "great firewall", cutting Britain off from the rest of the internet. In 2015, before entering the cabinet, Brexit Secretary David Davis warned of ending encryption: "Such a move would have had devastating consequences for all financial transactions and online commerce, not to mention the security of all personal data. Its consequences for the City do not bear thinking about."

Labour's manifesto pledged to "provide our security agencies with the resources and the powers they need to protect our country and keep us all safe." But added: "We will also ensure that such powers do not weaken our individual rights or civil liberties". The Liberal Democrats have vowed to "oppose Conservative attempts to undermine encryption."

But with a large Conservative majority inevitable, according to polls, ministers will be confident of winning parliamentary support for the plan. Only a rebellion led by Davis-esque liberals is likely to stop them.

George Eaton is political editor of the New Statesman.

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