By Simon Miller
Greek banks would be recapitalised under public control through the issuing of ordinary voting shares if Syriza gains power at the weekend.
In its economic programme, the left-wing party said that it would recapitalise banks through ordinary voting shares so as to “ensure the interests of the Greek state and taxpayers”.
The programme’s author Giannis Dragasakis added that any bank that was recapitalised through public funds would be under public administration and social control and a dialogue would be launched with shareholders to shape an “effective system of public control”.
In addition, there would be a restructuring or haircut on the private debt of households towards banks “with a ban on the seizure of primary hoes for the lower income brackets and readjustment of monthly installments so that they do not exceed 30% of the monthly income of debtors”.
Syriza also proposes a reform of credit data agency Tiresias to relieve individuals and companies from “burdening data” and “to introduce special regulations that take into account the special conditions that have been created by the crisis and the restriction of credit”.
Dragasakis reiterated Syriza’s aim to tear up the bailout deal noting that after two years not only had the recession continued but public debt had become unsustainable and unemployment had continued at unprecedented levels.
He continued: “The Memorandum as a ‘remedy’ has proved more devastating than the crisis itself. The policies of the Memoranda built around the ‘internal devaluation’, have been proved a weapon of social mass destruction. A lethal experiment conducted on the Greek people, which must be halted now, before the devastation becomes irreversible.”
Syriza proposes replacing the bailout memoranda with a new plan for social recovery, economic reconstruction and just fiscal stabilisation.
Dragasakis said the accumulated debt and the conditions for future funding of development could b adjusted by writing off a large portion of the accumulated debt, “with provisions for servicing of the remaining debt to be linked to the rate of development, and suspensions of payments on the interest until the economy rebounds”. Syriza wants this to be within the framework of a common European solution for the public debt of all EU countries but if unfeasible would be pursued through bilateral negotiations.
In addition, there would be an implementation of a programme of “radical reforms and transformations of the state, public administration and the economy, aiming to create a new, sustainable, just and ecologically sound paradigm of development”.
The economic programme in full:
THE ECONOMIC PROGRAMΜΕ OF SYRIZA-EKM