Over the past five years, the EU and the IMF have imposed unprecedented austerity on Greece. It has failed badly. The economy has shrunk by 26%, unemployment has risen to 27%, youth unemployment to 60% and, the debt-to-GDP ratio jumped from 120% to 180%. The economic catastrophe has led to a humanitarian crisis, with more than 3 million people on or below the poverty line.Against this background, the Greek people elected the Syriza-led government on 25 January with a clear mandate to put an end to austerity. In the ensuing negotiations, the government made it clear that the future of Greece is in the Eurozone and the EU. The lenders, however, insisted on the continuation of their failed recipe, refused to discuss a write down of the debt – which the IMF is on record as considering unviable – and finally, on 26 June, issued an ultimatum to Greece by means of a non-negotiable package that would entrench austerity. This was followed by a suspension of liquidity to the Greek banks and the imposition of capital controls.
In this situation, the government has asked the Greek people to decide the future of the country in a referendum to be held next Sunday. We believe that this ultimatum to the Greek people and democracy should be rejected. The Greek referendum gives the European Union a chance to restate its commitment to the values of the enlightenment – equality, justice, solidarity – and to the principles of democracy on which its legitimacy rests. The place where democracy was born gives Europe the opportunity to recommit to its ideals in the 21st century.