If the eurozone thinks Greece can be blackmailed, it is wrong | Costas Lapavitsas | Comment is free | The Guardian
▻http://www.theguardian.com/commentisfree/2015/jun/09/eurozone-greece-blackmail-wrong?CMP=share_btn_tw
The proposals by the Syriza government represent a painful compromise compared to its electoral promises. It has accepted tight fiscal targets, and to achieve them it is offering to raise VAT on several goods, while also imposing a substantial tax burden on the rich, thus achieving some redistribution. It has also toned down its policies on privatisation and pensions. In return it is asking the troika for an immediate injection of liquidity, as well as for a serious commitment to reduce Greek debt and to promote long-term investment. There is hardly anything revolutionary, nor even particularly radical, in these demands.
The response of the eurozone creditors, judging by a leaked “official” document, has been ruthless. They have set fiscal targets slightly above those of Syriza, but to achieve these they are demanding a substantial increase in VAT, including a rise of 10% on electricity, thus hitting the poorest where it hurts.