Alexis Tsipras' radical answer to the Greek debt crisis

A civil engineer by training, Alexis Tsipras, 37, is a Member of Parliament in Greece, and is parliamentary leader of the radical Left coalition group Syriza, which includes the party he presides, Synaspismos.  Syriza represents one of the principle Greek radical opposition movements, along with the KKE communist party, ahead of early elections due in 2012. Following the collapse in support for the former governing Greek socialist party Pasok, vilified by its electorate for its unpopular austerity measures introduced amid the Greek debt crisis, the coalition faces its greatest electoral challenge – and opportunity - since it was founded in 2004. In this interview with Amélie Poinssot, Tsipras details his alternative vision of how Greece can emerge from the crisis, and the problems posed by a legacy of division among the Greek Left.

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Mediapart: What alternative do you propose in Greece?

Alexis Tsipras: The question is not about a political alternative in Greece, but a political alternative in Europe. Very early on, we saw that it was a systemic crisis linked to the architecture of the euro. The way in which the crisis was faced in Greece was probably the worst one possible. When you have a problem of public debt, you can’t resolve it by getting deeper into debt, and at the same time demanding that the economy stops functioning. On the contrary, to get out of one’s debts, it is necessary to produce a surplus to pay them back. So I am for a settlement of the debt at a European level, and for a plan for boosting the economy in Greece to counter the recession.

The Greek government should also very swiftly engage on a programme of redistribution of wealth. One example here; at the current time, according to certain reports, there is more than 600 billion euros of Greek money in Swiss banks - that’s almost twice the country’s public debt – sent either by Greek banks or placed directly by individuals abroad.  So there is wealth, but it’s not subjected to tax.

Mediapart: How can that be remedied?

A.T.: Our proposition is the following. That everyone in Greece be made to make a declaration that includes all their assets, their housing property, but also their deposits in national and foreign banks, and their movable property. Currently, the tax payer is not required to do this. Of course, you’ll ask me what can stop them from making a false declaration. Very strict rules need to be put into place. For example, if someone is caught out for having made a false declaration they must be threatened with the confiscation of their assets. Until now, the Greek fiscal system has remained unjust and unequal.

Another idea we propose [is] an exceptional contribution from ship owners. You know that Greece has the largest commercial fleet in the world. Do you know the level at which Greek ship owners contribute to the public purse, at such a difficult time for our country? Less than immigrants when they have to pay for their residency permit. Ship owners benefit from 58 different sorts of tax relief. There must absolutely be pressure applied to this, and a change made to legislation.

Mediapart: You are for a profound fiscal reform, and for a European solution to the Greek debt issue. Are you therefore in favour of Greece remaining a member of the eurozone?

A.T.: Yes, I don’t believe there can be a political solution outside of the euro. However, I believe that Greece or any other country that sees its sovereign rights and the interests of its people reduced has the right and the duty to defend its national interest, even with the threat of a collapse of the euro.

In reality, we are heading towards the other extremity. The euro is under threat because of Germany’s insistence for a policy of austerity. If there is not a change in the architecture of the euro, that’s to say that if the European central Bank is not given the possibility of producing money and constituting a reserve for the loans of countries that are facing problems, then the euro will not survive.

And perhaps Germany will be the first country to leave the euro. Now, if a country leaves the euro, the eurozone will collapse.

Mediapart: What ties do you envisage with other European parties of the Left?

A.T.: I am the vice-president of the European Party of the Left, the president being Pierre Laurent, national secretary of the French Communist Party. We are in regular contact. Just one week ago we saw each other to discuss developments following the decisions taken at the Brussels summit. I am also close to [French radical Left party leader] Jean-Luc Mélenchon. I hope he obtains a good score at the [French] presidential elections.

The European Party of the Left some time ago tabled a series of alternative propositions for dealing with the crisis. Firstly, we argue for a re-foundation of the eurozone and the euro, we want to change the stability criteria. No more [prioritization of] the deficit, debt and inflation, but rather development - an economy must be required to have positive growth figures -, the lowest possible unemployment rate and a balance of payments that is weighed equally between imports and exports. So that we don’t fall into this vast dumping ground between the countries of the North and the South, whereby the advantages of the North are the shortcomings of the South.

Our second axis is the role of the European Central Bank. Nowhere in the world is there an economy with a single common currency and a common monetary policy without a central bank that can finance and print money.

Finally, the third axis. We need a European budget, a generous one, in order to finance growth. A community purse can be financed by countries according to their capacities.