Greece: What's burning is consent

 

Public reaction has been very hostile, and the debate has been accompanied by strikes and violent protest

It started, as it always starts, with the communists: the trade union PAME formed its ranks, linked arms, sang songs and marched.

There were many older faces in the crowd: pensioners, manual workers in their fifties.

The world for them is about to change. Public services that have been a fixture of Greek life for decades will be closed or privatised; long cherished rights will go; pension pots will shrink - but above all the social deal these workers thought they had will vanish.

They came on, still, in the same old way: rigid, determined, clutching heavy sticks and crash helmets. They passed the riot police, the parliament, the indignados and their squatter camp - and marched away.

Start Quote

This is the first time in all the Greek protests of the past 18 months I've felt real danger”

End Quote

Now Syntagma Square filled with other protesters: the middle class, the salariat, the youth, people with tattoos up their legs, bare midriffs; a man in a tight Armani shirt and a white gas mask on his elbow.

Earth mothers, grandmothers - if the image of Glastonbury keeps occurring to me it's for a reason - by now this protest is no longer the preserve of one segment of the demographic, or of politics. It is a cross section: right and left, young and old.

The nationalists, who've claimed the ledge above the square as their territory, are the toughest bunch.

The "indignados" - anarchist youth and just generally youth who've camped out there in the square for 35 days, their territory is below. The black bloc anarchists? Where do they come from - it is never clear but they always somehow do.

Stun grenades

Bottles and stones are thrown. The police - who've spent the night before clashing violently amid teargas so voluminous it still stings today before the trouble's even started - fire the first of Wednesday's gas, and a volley of stun grenades.

The crowd - not geared up at all for this - runs down the slope. Within seconds our eyes are streaming. A man, white faced with the alkaline cream they use to stem the burning - screams at me: "This is Greek democracy. We stand here peacefully and they fire gas at us. I'm a businessman - my turnover is 80% down, what am I supposed to do!"

Demonstrators walk among debris Demonstrators come from all sections of Greek society

The gas is fierce. It does not just sting your eyes and throat, your skin feels like it is burning. This is maybe an occupational hazard for the youths in balaclavas who now appear, but not in the life-plan of the grandmothers and mothers who've been sitting peacefully in the street where the grenades are landing.

If you wanted to give a demonstration of how to alienate people from politics this is it - but the police, after nights of violence and abuse from the crowd, are alienated enough themselves.

We move into the square. Most people are trying to flee the fighting but some move towards it, up the famous steps of Syntagma. We move with them, filming with hand-sized stills cameras to avoid getting hit by the hardline protesters who insist the media is part of the state.

As we advance, teargas canisters spiral down and land at our feet: the protesters pick them up and throw them back, kick them around like an extreme sports version of five-a-side.

At the top of the steps is deadly space - we're slipping on something and it is blood. The cops snatch somebody and beat them. All around young men are now smashing the marble stones of the square for projectiles: big, lethal projectiles.

Soon the police move in to break this up, taking all four corners of the square. But in the process a dense crowd stampedes along a wide thoroughfare.

Real danger

This is the first time in all the Greek protests of the past 18 months I've felt real danger. Most people do not have masks; they are crushed together; you sense that scramble beginning as people push each other.

Start Quote

This, in clear red letters, is what happens when economics go wrong”

End Quote

We reach a side street. People clap their hands in the air and do the Greek "cursing" gesture with open hands, which simulates throwing dirt at somebody, and is millennia old.

One guy is a classical pianist who has studied at the Royal Academy: "They've lost the people completely. There's no way we can accept the austerity plan. People are broke already. You've seen this - they can only speak to us with riot police and gas."

A woman, bank worker, early 20s, outraged: "They do this every time. We will stop them." How, I ask: "We will just keep going on strike."

As we speak the crowd surges down the narrow street. A man, in the familiar white-face alkali slick and a mask, shouts at me: "I'm an interior designer; I've worked in England for 10 years. This is not democracy - they never let us vote for this."

As we try to get away, it's clear the whole area of the Plaka, narrow streets with small businesses - flower shops, delis, vegan restaurants - is now a battlezone.

Protesters walk among teargas Faced with bottles and stones the police retaliate with teargas

While the violent disorder in the square is capturing the attention of the world, what's going on here should be also worrying: this is "middle Europe" - not a bunch of dedicated protesters.

They feel collectively punished for being here; they don't throw stones but when attacked they're happy for others to do so.

A burning barricade starts. Just yards away a crowd has formed to watch the parliamentary vote. Zoned out, some of the women are doing the open hand thing at the screen, as the MPs vote the austerity package through and on the split screen there's the black bloc hurling firebombs at McDonalds.

And just yards away, the actual black bloc, ebbing and flowing through the Plaka, on fire.

It's weird to be an economics journalist reporting this: because I am coming to the conclusion that this is the next phase of the economic story - penury at the edge of Europe eating away at both social cohesion and the resilience of the financial system.

In my profession we always keep telling ourselves we've got to do more stories on small businesses, but I've just had five or six small businessmen, self employed, entrepreneurs etc yelling at me an agenda you don't usually associate with such people: outright rejection of the political system and politicians in general.

This, in clear red letters, is what happens when economics go wrong.

Antonis Papayiannidis, a lawyer and political columnist I meet by dodging through the smoky streets to his office, believes Prime Minister Papandreou has been "heroic" but can do no more.

The execution law to be passed tomorrow, he says, will simply fail in practice - running into the old obstacles to change here. Greece will leave the euro and everybody will become poor together - "at least it's equal" he says.

"The political class was never accountable - it floated above the people, separate from them. But we got rich - under the euro - so we accepted it; and they got rich; and all sides love the public sector. They love doling out jobs to people. But now the political class is still floating, detached, but it has nothing to deliver."

Democracy will survive, but it's in danger, says Papayiannidis - from "mob resistance" rather than mob rule: "When you get the petit-bourgeoisie enraged, combined with those who are just at the edge of poverty, there's no precedent for it here, but there is in Germany in the 1920s. And the outcome was not nice."

What Greece is being forced to do is threatening the legitimacy of a democratically elected government and putting at risk the legitimacy of the political system in general. And the question for the EU and IMF is simple: is it worth it?

 
Paul Mason Article written by Paul Mason Paul Mason Former economics editor, Newsnight

End of an era

After 12 years on Newsnight, Economics editor Paul Mason has moved on to pastures new and this blog is now closed.

Read full article

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    +1

    Comment number 31.

    #30 BluesBerry

    I wonder if the French rolled-over loans are denominated in Euros and subject to French law and if the old loans were subject to Greek currency and Greek law.

    It would give a reason for the French banks to go along with it, and the Greeks would not be able default on the loan (a bit like UK students)

    The Greek people should get out now whilst they still have the chance

  • rate this
    +1

    Comment number 30.

    Why would banks volunteer for this deal?
    The French proposal allows banks to mark NEW debt as “held-to-maturity,” meaning they are not compelled to recognize their own LOSSES. It also buys time, not for Greece to recover, but for EU politicians to work out some way for the LOSSES to get lost among the taxpayers. Seems to me that something nefarious this way comes.

  • rate this
    +1

    Comment number 29.

    S&P plays a little more with the definition. Let me quote: “whereby one or more financial obligation is either repurchased for an amount of cash or REPLACED BY OTHER INSTRUMENTS” = Selective Default.
    The ratings agencies must be cracking under pressure to bend, if not break, their own rules.

  • rate this
    +1

    Comment number 28.

    The NEW Greek debt would have 5.5% interest rate. This is a lot of wangling & dangling so that a default may not seem a default. It may cause banks accept diminished economic returns - but how dumb do you have to be financially not to see "D". Fitch ratings agency has already said it would view such a deal as a default; other agencies have not yet committed.

  • rate this
    +1

    Comment number 27.

    French banks have proposed a burden-sharing plan ("voluntary"), as though voluntary is a economic, magic word. Under the plan, holders of Greek bonds maturing in the next 3 years would agree to roll over 1/2 exposure into new Greek 30-year bonds. Another 20% would go to fund a vehicle to act as collateral against Greek default. What is there about this that is not a credit event?

  • rate this
    +1

    Comment number 26.

    I'm having a great deal of difficulty believing Greek bailout can escape the letter "D". Even if the deal goes through, it's not sufficient to solve Greece’s debt problems - only buying time. Greece approved austerity package on Wednesday, removing 1 road-block to further support, but how to get banks to participate in debt relief without prompting a credit event?

  • rate this
    0

    Comment number 25.

    Germany’s high court will start hearing suit Tuesday against bailout of debt-ridden eurozone countries, including Greece. Karlsruhe-based Constitutional Court is hearing the case filed by a group of German Euroskeptic academics who say that creation of rescue packages for Greece, Portugal & Ireland are in violation of EU's no-bailout clause.
    Decision to keep one's eye on...

  • rate this
    0

    Comment number 24.

    Just who is supporting Greece? Why does Greece have the 28th largest defence budget in the world at 9.3 billion euros? Why is defence being cut by only 300 million euros and social security by over 1 billion.

    Are Greeks rioting to demand that their government keeps buying guns?

    Think about the economic occupiers and their sneering contempt for democracy and the silence of the media.

  • rate this
    0

    Comment number 23.

    mafftucks
    PAME is a communist organization, extremely disciplined, and categorically against the use of violence in their demonstrations. whenever they march they provide their own security and keep their members in check.
    unfortunately for them, they seem to be stuck in their own rhetoric and separated themselves from the spontaneous uprising we see today. the CP have a steady support of 8-10%

  • rate this
    0

    Comment number 22.

    good "snap-shot" of Greece at the moment.
    but let's be clear on one thing: the "black block", that is the ones that caused a lot of the damage, is not one group of anarchists, but rather the violence is started by extremist right-wing groups which provoke the police and the anarchists respond. the cooperation of the police and right-wing extremists is amply documented in photos and videos online

  • rate this
    +1

    Comment number 21.

    As UK citizen, and watching the Greek police response to protests, their police seem quite reasonable? Watch that amusing riot dog on BBC iplayer!

    Not seen any 'kettling' in Greece, automatically used by UK police, who appear more intent on treating EVERY demonstrator as a threat? Yes, I detest anarchy/organised idiots, but disapprove of those in command of our UK police/ TA used on UK demos.

  • rate this
    0

    Comment number 20.

    Nice report. Could you (or any one else who knows) tell us more about the PAME position? I remember talking about this a year plus ago when the 'hooded ones' were making the state creak, and it was felt that PAME (the biggest player by far) were the metaphorical kingmakers. Judging by their marching away, have they decided to back away from revolutionary change do you think?

  • rate this
    -1

    Comment number 19.

    What are the free marketeers but anarchists. The last thirty years have seen the removal of all the controls protecting against harmful greed in the financial sphere. Spivs reign supreme.

  • rate this
    0

    Comment number 18.

    What happened to my comment??

  • rate this
    0

    Comment number 17.

    @14 There is no good paper(electronic) money any more. The value of the promissary note is becoming more ephemeral. This is why Greece will be propped up as long as possible. There is no plan in place(yet) to deal with the effects of default. Good money is physical gold, etc., which has maintained it's value since 2008. It's all a ponazi scheme I believe.

  • rate this
    +1

    Comment number 16.

    Hi Paul, neat outfit: goggles, sunscreen and mouth-nose cover.

    I also saw Andrew Harding is his blue kevlar helmet and matching blue bullet-proof vest emblazoned with the word PRESS.

    If only BBC has a fashion page like the tabloids, then, a feature on the pressman’s ‘encounter suits’ would make a good read.

  • Comment number 15.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    0

    Comment number 14.

    Pouring ever greater quantities of water through a broken pipe just makes the leak worse. They won't fix the Euro by "bailing out" Greece, it's just throwing good money after bad and doing exactly what China and the rest want - weakening the western financial systems further. Time to give it up as a bad job, go back to sovereign currencies.

  • rate this
    0

    Comment number 13.

    Watching BBC News 24 @ around 05.50 yesterday morning (30/6/11) and an 'expert' whilst talking about the USAs's trillions & trillions of debt mentioned that the USA owes Greece over £300BILLION. Why dosn't the IMF / EU demand that the USA pays its debt to Greece maybe solving Greeces debt crisis instead of as usual forcing a fire sale / state asset strip which ill result in a new Oligarchy?

  • rate this
    +1

    Comment number 12.

    'Public reaction has been very hostile'

    That Mo'public' seems 2 have thrown a Molotov & looks awfully similar 2 bloke in picture with this caption:

    'Faced with bottles & stones the police retaliate with teargas'

    Sticks and stones may break cops' bones, but fire can cause 3rd degree burns or death.

    Not to mention the power of the pen, in some partial hands.

    Maybe some cheeks shud be burning 2?

 

Page 1 of 2

 

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.