The Greek political scene continues to suffer from a charming, cyclical amnesia. Every time the temperature rises and the polls draw near, opposition leaders suffer a sudden bout of extreme generosity.
In recent weeks, we have been witnessing an epic contest: “Tzampa 1” versus “Tzampa 2”, as Kyriakos Mitsotakis from Voula, are in a race to see who can promise the most.
In the case of Alexis Tsipras, it seems that the mindset of “I Won’t Pay” is second nature to him, something of a case study in political and economic alchemy. It hasn’t been decades since then, and the vivid images from 2011 easily come to mind, when the then-young leader of SYRIZA was building his profile atop the toll booths, embracing the “I Won’t Pay” movement.
The logic was simple, revolutionary, and deeply populist: “Don’t pay for tickets, don’t pay tolls—the state is the enemy,” were the defiant words with which he articulated his logic. Which, of course, was accompanied at the time by the infamous climbing over toll booths.
The transformation, a consequence of… kolotoumpas, came in 2015, when “I Won’t Pay”—once a government slogan—was transformed overnight into a submissive “I’ll Pay and Then Some” of the third memorandum, with the ENFIA property tax becoming permanent and foreclosures taking their turn to hit vulnerable households.
The “money tree” blossomed
On June 12, Alexis Tsipras presented a package of five “front-line” measures. These measures sparked strong reactions, as there was no mention whatsoever of their cost—both financial and in terms of the impact on the cohesion of Greek society, which, especially these days, is absolutely essential. Here’s what we’re saying:
–Free public transportation: Completely free travel on public transportation in Athens and Thessaloniki for all permanent residents and young people (only tourists are explicitly excluded). This followed a proposal by Nikos Androulakis for free public transportation in the same cities, but for young people up to 24 years of age. The cost amounted to 35 million according to PASOK, but no one bothered to consider who would actually pay the 35 million. So, Alexis Tsipras did some rough calculations—the figures came out slightly higher—and promised free electricity for everyone, not just those up to 24 years old.
-““Energy Safety Net”: Provision of a minimum guaranteed amount of electricity at a fixed, subsidized price for all households, in response to rising energy costs.
-Abolition of the Panhellenic Exams: Reinstatement of his previous proposal for free access to higher education, without the stress of the national examination system. This promise, in particular, was made at a time when the anxiety of the candidates and their families is at its peak as they await the announcement of their written exam scores.
-Public Agency for Non-Performing Loans: Establishment of a state agency for the social management of mortgage loans, in order to put an end to pressure and foreclosures by investment funds.
-Special Pay Scales: Immediate inclusion of educators (elementary and secondary school teachers) in a special, upgraded pay scale and across-the-board pay raises for doctors and nurses in the National Health System (ESY).
Nikos Androulakis also followed this line of reasoning. At the heart of his own adaptation to the logic of “benefits” taxation and private debt.
-VAT reduction and cost-of-living adjustment: Targeted reduction of VAT on basic goods and food, as well as an automatic indexation of the tax scale, so that any wage increases are not eroded by inflation.
-Putting the brakes on the Golden Visa & housing loans: Drastic restrictions or even a complete “freeze” on the Golden Visa, accompanied by the creation of a large pool of social housing to reduce rents.
-New Katseli Law: Full restoration of strict protection for primary residences for vulnerable borrowers and a limitation on the legal liability borne by guarantors of non-performing loans.
-Reduction in ENFIA: Reduction in property tax, specifically for the country’s mountainous, disadvantaged, and border regions.
Time to Settle the Score
All these packages were announced even before it was made clear that we are in an election campaign period. In these specific cases, “investment for nothing” goes hand in hand with what we’ve been calling in recent years “fiscal populism,” which in turn goes hand in hand with the reckless inflation of the government’s operating costs. And we’ve all learned—all too well—who pays when the bill comes due…
