Eurodad: Strong call for Greek Debt Audit

EURODAD

03 March 2011

‘Public commission would help put Greek people in charge of economy’

Today, more than 200 prominent Greek and international figures launch a call to audit Greece’s debts. Economists, activists, academics and parliamentarians from across the world are demanding the establishment of a Public Commission to examine the debts that lie at the root of Greece’s crisis. The Commission would examine the legality and legitimacy of those debts, with a view to negotiating better terms and holding those responsible for unjust debts to account.

Debt audits have been used across the world to allow civil society to hold to account those responsible for the damage caused by their country’s indebtedness. An audit in Ecuador in 2008 encouraged President Correa to default on some of Ecuador’s most unjust debt, leading to a write-down by borrowers. Two former Ecuadorian ministers have signed the call to support an audit in Greece, alongside Members of the European Parliament, international economists and academics and civil society representatives.

Campaigners are angry that Greece’s debt has mushroomed since the financial crisis in 2008, and believe Greece’s levels of debts are unsustainable. They argue that austerity measures are forcing the poorest in society to pay for the economic problems caused by the financial collapse in 2008. 

The call, which was launched in Athens at 12.00 (Central European Time) states:

“Greece has been at the forefront of EU rescue programmes, but the Greek people have been kept in the dark regarding the composition and terms of public debt. The lack of information represents a fundamental failure of the democratic process. The people who are called upon to bear the costs of EU programmes have a democratic right to receive full information on public debt. An Audit Commission can begin to redress this deficiency.”

Øygunn Brynildsen from Eurodad said:

“Failing to hold lenders to account for reckless behaviour, combined with a lack of transparency encourages bad lending and investments, and ultimately, chronic and unjust debt.”

Nick Dearden from Jubilee Debt Campaign said:

“In Greece as elsewhere, ordinary people are being made to pay for the recklessness and greed of the banks through harsh austerity measures. The banks have been allowed to gamble with the lives and livelihoods of the poor for too long. It is time people stood up against the power of finance and put themselves back in charge of their own economies. In Greece, as throughout the developing world, a debt audit commission is a vital step towards a more just financial system.”  

“The call for a debt audit might well be extended to Ireland“said Andy Storey, chairperson at Action for Ireland (Afri). “As in Greece, there is a lot of confusion about who owes what to whom, and why, especially when it comes to the bank debts guaranteed by the Irish government” Storey added.