Alexis Tsipras of Syriza: be daring, Ed Miliband

Greece's opposition leader on meeting with Labour officials, and his views on the "self-destructive" Cyprus bailout.

Alexis Tsipras, leader of the Greek left-wing movement Syriza, has revealed that he met with senior officials from the Labour Party during a recent visit to London. In a wide-ranging interview with the New Statesman, Tsipras described Labour as "one of the few parties so close to power in Europe with whom we share a lot of positions".

Q: Would you say you have political allies in Britain?

A: I had the opportunity to meet with two teams from the Labour Party: an official one headed by [Jon] Cruddas, the party's head of policy-making, and another one with four to five Labour MPs. I got the impression that the Labour party today is in soul-searching mode, and the debate around austerity is on, so Greece is for them an interesting case study. Bearing in mind that in previous years they followed neoliberal policies, today Labour are deeply troubled about everything that has happened in Greece and especially by the collapse of PASOK [Labour's social-democratic Greek sister party]. They’re following the situation closely and I dare say they are one of the few parties so close to power in Europe with whom we share a lot of positions and with whom we can be in constant communication.

Q: So SYRIZA can find common ground with Labour?

A: It will depend upon how daring [Ed] Miliband intends to be and especially when it matters most: during the next elections when pressure from the mainstream media and oligarchs in Britain start speaking of the "red dragon" that has come to drive away the City and submerge us in inflation and poverty. Of course this will depend not only on Miliband's endurance but also on the circumstances under which this duel will take place. Because if elections are held in 2015, the two years in between will be apocalyptic as to the effects of neoliberalism in Europe. Britain is already in depression. Nothing is getting better. More and more people in Europe realise that austerity is not a viable prospect. I hope people realise that there is no other way but to radicalise even further.

Tsipras also gave his verdict on this weekend's surprise bank levy in Cyprus, and called on the country to reject the bailout deal:

I think it’s unbelievable and self-destructive.

I believe that in the next few days panic will spread to the rest of southern Europe. It is a very risky choice they [the troika] have made, and it proves they have no understanding of the objective dangers facing the eurozone. They’ve chosen to have a Eurozone operating under their rule, with the people subjugated, threatened with blackmail like this. I think the only chance Cyprus has, like other countries, is if the political system rejects this blackmail. If they accept it, then there is no way back. Cyprus's economy will be ruined, its banking system will bleed capital as depositors will fear a second haircut, and this will spread throughout Europe.

On the contrary, if Cyprus resists, and rejects this deal by protecting its banking system, it would send a strong message of trust and credibility to the rest of the southern European countries as well.

You can read the full interview here.

Alexis Tsipras casts his ballot in Greece's general election of June 2012. (Photo: Getty.)
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.