Selective zero-tolerance: is Greece really a democracy anymore?

The abuse suffered by four young anarchists, arrested for a bank robbery, at the hands of the police proves it’s time to call Greece’s coalition government what it is – a far-right authoritarian group.

Earlier this year, the Greek Minister of Citizen Protection declared he would take up initiatives to restore law and order in the capital of the crisis-stricken country. Nikos Dendias spearheads an attempt by the coalition government produced in last June’s elections to show that while the public coffers are empty and people are seeing their quality of life reduced to shambles, the state is present and it can still provide them with a sense of safety at the very least. Xenios Zeus was one of those initiatives, a crackdown on “illegal immigrants”, its failure (from 73,100 people arrested, only 4,352 were charged with anything) a big problem for the government. The coalition is also now dealing with accusations of tolerating an increasingly authoritarian police force that is torturing people and colluding with the neo-Nazi Golden Dawn, alongside the Lagarde list scandal taking its toll and two very difficult parliamentary votes looming. The first is a new tax code that will find many Greeks unable to pay their tax bills in 2013 and the second an investigation into the names included in the Lagarde list (the list of around 2,000 potential Greek tax evaders with undeclared Swiss HSBC accounts passed to the Greek government by Christine Lagarde in 2010), with at least two senior members of the government involved in an attempt to bury the files before they were published three months ago.

Since the crackdown on immigration didn’t work as the ministry had expected, their next move was to attack occupations and spaces associated with the anarchist movement. This should not come as a surprise since it is exactly these political spaces that have moved to organise in many neighborhoods and stand against the neo-Nazi gangs now roaming the streets of Athens, often with very high cost. But the manner in which this agenda is pursued has revealed something more: this government now sees the anarchists, as well as SYRIZA, as its opponent on the political stage. By cracking down on squats like that of Villa Amalias a month ago, the government is doing a favour for the Golden Dawn thugs who attack people openly with no repercussions – it was squats like that which traditionally stood as an obstacle to the ever expanding activities of the neo-Nazis and which as many locals have stated, helped keep the area around it safe. The spin is to baptise anarchists as the tools of SYRIZA, terrorists who enjoy the support they get from the opposition party. They have gone on the record with this many times.

But it’s the arrest of four young anarchists (aged between 20 and 25) this weekend after a failed bank robbery that brings back the political nature of Dendias’ agenda and of the police’s fascist tendencies. Two of them already wanted as suspects in the “conspiracy of the cells of fire” terrorist group, they were arrested in Kozani after trying to flee the bank while chased by the police. Witnesses of the incident claim that when they realised they couldn't get away, they exited the car and surrendered peacefully. However, the pictures published by the police show them to have been extensively abused, their faces swollen to the point where the mother of one didn’t recognise her son when she was allowed to see him. His own testimony leaves no doubt as to what transpired. He claims they were fitted with hoods, tied up and beaten for hours after their arrest. That the police tried to crudely photoshop the bruises “to make them recognisable” as Dendias himself stated points to the extent of the abuse. The use of torture is straightforwardly forbidden by the Greek constitution and violates human rights, while reminding the Greeks of the Colonel’s Junta and their systematic torture of dissidents.

A video showing the four being transferred leaves no doubt as to their political alignment. In front of the cameras, they shouted defiance at a country that has pushed its youth to extremes with the apathy that now runs deep in our lives, making us afraid of losing the few things we have left. “We only lost a battle, not the war” and “Long live anarchy”, they shouted, not to the cameras, but to the faces of those who stand by idle. Dendias didn’t even bother to launch an inquiry into the conditions under which they were tortured despite stating that “there is no desire to cover up anyone or anything”. Prime ministerial advistor Failos Kranidiotis, in an exchange we had on Twitter, sided with the police and spoke of injuries that were caused during the arrest, despite the absence of evidence backing his claims. How could anyone disarm a “terrorist armed like a lobster” with his punches? That is his claim and that of Dendias. He said “the monopoly of violence belongs to the state” and spends more time being sarcastic towards journalists who called him out on his statements than actually providing a factual basis for them. The New Democracy government is trying to condemn an entire ideology and along with it, all righteous outrage.

But this is the sort of policy line the government currently walks. Thin on arguments, strong on propaganda, full of venom and revenge against all those who oppose their totalitarian plans in any way. That the four kids were arrested for armed robbery does not justify torture, because that only brings us one step away from legitimising the torturing of the fifteen anti-fascists last October. All this wears only one colour, and it’s the colour of hate against those who will not stand for members of far-right groups and think-tanks (as Dendias and Kranidiotis were in the Nineties) to crack down on their lives and their dreams.

One of the four arrestees was a friend and present in the murder of Alexis Grigoropoulos by a police officer in 2008, which sparked two weeks of unrest in the Greek capital. That we already see a revisionist line in operation in the mainstream media that suggests Grigoropoulos would become a terrorist himself is indicative of the intentions of this government. It is our duty and Europe’s to expose and stop co-operating with those who won’t hesitate to ignore human rights, refuse to reform a clearly fascist police force, and who don’t see racist motives when supporters of the Golden Dawn murder immigrants in the street. It is time to ask for the resignation of Nikos Dendias and any like-minded cabinet members. If we don’t want to see more kids boiling with anger, taking up arms against a system intent on turning them into drones working for scraps, torturing them when they refuse to conform, then it is time to speak out and call this government what it is: a far-right authoritarian group, dressed in a thin-veil of pro-European liberalism. Refusing to recognise them as anything but that is now an obligation for each and every one of us.

 

Members of the Greek ultra-nationalist Golden Dawn party wave Greek national flags during a gathering of Greek nationalists in central Athens on 2 February 2013. Photograph: Getty Images

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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