.."What's at issue really is a class war. It's not so much Germany versus Greece, as the papers say. It's really the war of the banks against labor. And it's a continuation of Thatcherism and neoliberalism.
The problem isn't simply that the troika wants Greece to balance the budget; it wanted Greece to balance the budget by lowering wages and by imposing austerity on the labor force. But instead, the terms in which Varoufakis has suggested balancing the budget are to impose austerity on the financial class, on the tycoons, on the tax dodgers. And he said, okay, instead of lowering pensions to the workers, instead of shrinking the domestic market, instead of pursuing a self-defeating austerity, we're going to raise two and a half billion from the powerful Greek tycoons. We're going to collect the back taxes that they have. We're going to crack down on illegal smuggling of oil and the other networks and on the real estate owners that have been avoiding taxes, because the Greek upper classes have become notorious for tax dodging.Well, this has infuriated the banks, because it turns out the finance ministers of Europe are not all in favor of balancing the budget if it has to be balanced by taxing the rich, because the banks know that whatever taxes the rich are able to avoid ends up being paid to the banks. So now the gloves are off and the class war is sort of back."..
Well, all of a sudden the position of Spain, for instance, is, wait a minute, we're in power, we're a Thatcherite neoliberal party. If Greece ends up not going along with austerity and saving its workers, then Podemos Party in Greece, in Spain, is going to win the next election and we'll be out of power. We have to make sure that Varoufakis and the SYRIZA Party is a failure, so that we ourselves can tell the working class, you see what happened to Greece? It got smashed, and we're going to smash you if you try to do what they do; if you try to tax the rich, if you try to take over the banks and prevent the kleptocracy, there's going to be a disaster.
So, obviously, Greece and Portugal want to impose austerity on–Spain and Portugal want to impose austerity on Greece. And even Ireland now has chimed in and said, my God, what have we done? We have imposed austerity for a decade in order to bail out the banks. Even the IMF has criticized us for going along with Europe and bailing out the banks and imposing austerity. If SYRIZA wins in avoiding austerity in Greece, then all of our sacrifice of our population, all of the poverty that we've imposed, all of the Thatcherism that we've imposed has been needless, and we didn't have to do it.
So there's a whole demonstration effect, which is why they're treating Greece almost as a symbol for–the class war as a symbol for labor saying, wait a minute, we don't have to impose austerity, we can collect taxes from the tax dodgers.
Remember a few years ago when Europe said, Greece owes 50 billion euros in foreign debt? Well, it turned out that the central bank had given to the Greek parties a list called the Lagarde list (for Christine Lagarde, head of the IMF) of all of the tax dodgers, Greek tax dodgers who had Swiss bank accounts. Well, the Swiss bank accounts that the tax dodgers had ended up to about 50 billion euros. So Greece could pay off the debt that it's borrowed simply by moving against the tax dodgers.
Well, this has infuriated the banks, because it turns out the finance ministers of Europe are not all in favor of balancing the budget if it has to be balanced by taxing the rich, because the banks know that whatever taxes the rich are able to avoid ends up being paid to the banks. So now the gloves are off and the class war is sort of back."