Yiannis Dragasakis, former MP for the Coalition of Radical Left (SYRIZA)who served as Deputy Minister of Economics in the all party government of Xenophon Zolotas, is acknowledged in Greece, grudgingly but acknowledged, as one of the best brains in his field.
In an interview at the Sunday (14/8/2011) edition of AVGI (left wing Greek daily) Mr. Dragasakis comes up with proposals that are new to me, at least and quite plausible if only the European leaders start listening to the people’s needs instead of the markets.
In reference to the Eurobond he claims that “This measure is not sufficient anymore. …..because what does “Eurobond” mean? It means borrowing from the markets and therefore the markets become the regulators of the debt.” Timing is important so Mr.Dragasakis goes a step further: “Now, the radical solution is for the European Central Bank to take up part of the debt. It has been suggested that part of the national debts be “unionized” (be considered as a debt of the European Union as a whole). Secondly, the European Central Bank can cover part of the debt by issuing money in order to prevent the risk of uncontrolled inflation, something already practiced in the US and Japan. Thirdly, countries should have the possibility to borrow money from the Central Bank. These measures mean a radical change of the European Union, of the Maastricht Treaty”.
Mr. Dragasakis’proposals become more credible if one goes to his personal page and reads his interventions in the Greek Parliament. He had been warning of a crisis since the autumn of 2006!!
The SYRIZA Parliamentarian claims that neither the conservative nor the social democratic models can give a way out of the crisis. The left forces, in cooperation with the unions, need to overcome their differences, unify their actions and connect the necessary resistance to wholly alternative policies.