Greece, Bankers and Privatisation – Selling the European soul

Stoa of Attalos

Stoa of Attalos

Greece’s subservient government is now pushing hard to open up new frontiers for privatization, with some 77.000 state assets slated for sale, including a host of historic marinas and idyllic islands, a number of ancient palaces, and large stretches of the country’s spectacular and unspoilt coastline.

Yet, the social and political opposition to the Troika’s privatization drive has been so fierce that the Greek government has already had to scale back its projected proceeds from 50 billion euros by 2015 to a “mere” 11 billion euros by 2016. While this hardly constitutes a victory, it does reveal the hostile social and political terrain on which the Troika and the Greek government currently have to navigate.

from an article written by Jerome Roos in Roar mag, for full  article see here

Excerpts of the article are presented below

A Scandalous Logic of Dispossession

While the sheer size of the privatization program and the aggressiveness with which it is being pursued are unprecedented in European history — eclipsing even the disastrous fire-sale privatizations in Eastern Europe following the collapse of the Soviet Union — the moves follow a well-established ideological script that has long been tested and perfected in the developing world, under the guise of the infamous Washington Consensus. As Harvard economist Dani Rodrik put it, in the 1980s and 1990s, “‘stabilize, privatize, and liberalize’ became the mantra of a generation of technocrats who cut their teeth in the developing world and of the political leaders they counseled.”

The script is not merely ideological, however: it has long since become the very modus operandi of the neoliberal state and the globalized world economy. The influential Marxist geographer David Harvey has referred to these processes as “accumulation by dispossession,” emphasizing how the “primitive” practices of enclosure that expropriated smallholder farmers and commodified the commons of pre-industrial England do not only continue today but constitute the very logic of the system. In The Shock Doctrine, Naomi Klein furthermore showed how economic and political elites often strategically exploit the temporary paralysis wrought by natural disasters and economic crises in order to privatize public property and common wealth that would otherwise be impossible to expropriate.
With the brutalities of disaster capitalism on full display in Greece today, and with the European Union and the IMF resorting to outright expropriation in order to claw back their own irresponsible loans to the Greek state, it is perhaps no surprise that the privatization process itself has been marred by scandals throughout.

It recently emerged that the government secretly granted total tax exemption to the consortium that bought up the rights to exploit the old Hellenikon airport, one of the most valuable pieces of land in the Mediterranean. Even as a Kafkaesque array of fees and taxes is being imposed on ordinary Greeks surviving off less than 500 euros per month, the owners of Lamda Development, as sole bidder for the site, “shall be exempt from any tax, duty or fee, including income tax in respect of any form of income derived from its business, of transfer tax for any reason, [or] capital accumulation tax.”

To make matters worse, it soon emerged that Lamda Development, which is owned by the Latsis family of shipping and banking tycoons, paid a mere $1.2 billion for the old airport, even though independent pre-crisis valuations estimated it to be worth at least $6.8 billion. Calculations by the Greek newspaper To Vima furthermore show that the state will have to make at least another $3.4 billion in administrative and infrastructural expenses before it can deliver the property to its new owner — thus effectively subsidizing the multi-billionnaire Latsis family for its “purchase.” In the process, the public debt accumulates even further.

In fact, the corruption of public officials and the collusion between state and capital is so extreme and so deeply entrenched that it has inevitably infected the top echelons of both government and business. Last year, Stelios Stavridis, head of the TAIPED privatization fund, himself a former construction mogul who made a fortune building swimming pools for Greece’s tax-evading business elite,was fired after a newspaper revealed that he had been offered a trip to the island of Kefalonia on the private jet of the infamous Greek oligarch and shipowner Dimitris Melissanidis, to whom he had — just hours before — sold a 33% share of the recently privatized state gambling monopoly OPAP. Stavridis was the second TAIPED head to be dismissed on allegations of improper conduct within a year. Of course, the deals themselves have not been in the least affected by any of these scandals. Whatever the cost, the fire-sale must go on.

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