Anti-EU graffiti in Athens. Photo: Getty Images
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What Greece needs isn't Grexit, but debt relief

We must learn the lessons from the Jubilee Debt campaign, not heed the calls of a Eurosceptic right and a Trotskyite left, says Richard Howitt MEP.

There's something wrong when the leading Conservative Eurosceptic MEP talks up a 'no' vote in the Greek referendum as "explosive" and a similarly leading UKIP activist in my own region accuses Europe of humiliating the Greek people.

On the day of the Greek referendum, are they really moved by genuine concern about the human suffering caused by the biggest economic contraction in economic history, the slashed wages and pensions, the deepening unemployment?

No. For them, this is not at all about Grexit but Brexit.

Britain's Eurosceptic Right is seizing on this moment because what they want is crisis.

It is the classic Marxist dialectic and - lo and behold - we find the Tory Right quite unashamedly getting in to bed with a leftist party motivated by that very ideology.

Tory politicians who were saying two months ago that Ed Miliband was not trustworthy for British business are suddenly clapping their hands at a Greek Prime Minister who last week called bankers the equivalent of terrorists.

At least Nigel Farage's love affair with Vladimir Putin shields him from the same charge of hypocrisy, when Alexis Tsipras flies off to Moscow and publicly makes excuses for Russian breaches of international law over Ukraine.

But a Tory Party which was prepared to blame Labour in Britain for the entire global financial crisis to secure its own return to power, has another characteristic in common with Syriza in Greece.

Cameron and Tsipras are united that it's always got to be someone else's fault.

So in a week when George Osborne is preparing to announce an austerity budget in Britain with welfare claimants as some of the biggest victims, do not believe the crocodile tears of Tory politicians over Greece this weekend.

How can Labour and our social democratic allies across Europe react, when we are squeezed from the argument by this unholy alliance of extreme left and hard right?

First, that we are the anti-austerity party, not a leftist one based on making excuses for tax evasion and corruption, but one in the mainstream of European social democracy, with an honest prospectus which really is about investment, youth jobs and decent public services.

Second, that we will not use the poor of Greece as pawns in our own political game. Whether Greece ultimately chooses to leave the Euro or not, should surely be determined by what is in the interests of their peoples not ours.

Neither side in Greece says it wants to leave the Euro, and those politicians who try to claim the country may leave the EU altogether are spinning a lie. At best this argument is based on the legalistic interpretation that there is no Treaty provision for leaving the Euro, only the EU itself. But any serious politician understands that a political solution would be found.

Third, we should champion and not be frightened of debt forgiveness. The French economist Thomas Piketty told us at a Progressive Economy Forum in Brussels last week that debt restructuring is now an inevitable part of the solution. The IMF's own leaked report of last Friday said the same.

Many of us were activists in the Jubilee Debt campaign and, although the roots of the current crisis are very different, when debt itself becomes the greater problem, politicians have to be prepared to address greater solutions.

Remember that today Greece does enjoy a current surplus, but that is the country's historic debt which is making the economic situation unsustainable.

Fourth, we should deal directly rather than indirectly with the humanitarian consequences of the current crisis, revising the solidarity grant on low pensions, to ensure protection of the poorest pensioners and their families.

It was deeply shocking that Greek pensioners were not able to withdraw from bank machines this week, but tourists with international bank cards were. Instead surely we should be putting money in?

And fifth, we should nail the lie that this is only about Europe. It is a serious risk that Greece dropping out of the Euro will lead to 'contagion,' with other weaker economies falling over like dominoes.  But if the Eurozone members haven't made equally serious contingency plans to avoid this event by now, then it is they who will be at fault.

But their failure would never be Britain's success. One million British tourists go to Greece every year.  British banks have £7 billion in Greek debt, multiplied many times further by holdings in European banks who have much more. 

Even George Osborne admits a Eurozone collapse would be devastating for Britain - although it's a pity Tory divisions over Europe don't let his colleagues see the same.

For Labour, to our allies in the trade unions, we should ask them to be careful not to romanticise the far left. The choice in the referendum in Greece today is probably one between accepting an austerity package which will doubtless have further catastrophic consequences for jobs and services in the country; or in accelerating a return to the drachma and a consequent devaluation which could inflict just as much misery on the living standards of the Greek people.

And Syriza should never be forgiven for going in to coalition with a far-right, nationalist party, in order to attain power.

There may be a choice on the ballot paper, but there will be no winners in today's referendum.

Finally, there is a further parallel between the global banking collapse and today's Greek crisis. 

Both Alistair Darling in 2008 and European Central Bank President Mario Draghi in 2012 used the explicit words that they were prepared to do "whatever it takes."

What they were referring to was stopping bank collapse.  Today's political debate is still about using public funds to bailout private banks, much more than about aid to Greece or its people.

It is a huge dilemma for democratically elected politicians that banking is an essential prerequisite for a successful economy but that - eight years after Lehman Brothers folded - reforms to banking rules still leave banks themselves 'too big to fail.'

Just as with dodgy American financial derivatives, it was the private banks who chose to lend to Greece and who clearly failed to adequately assess the risk of that lending or the consequences of it failing.

And just as in the global financial crisis, it is ordinary people who are suffering, and those responsible for the crisis who are least suffering its consequences.

So I will be following the results tonight along with everyone else, but new international action on debt and bank reform provide the true answer, not nationalist or Eurosceptic responses from the right.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com