SYRIZA is trying to limit popular discontent against its capitulation to EU and relaxes capital controls in banking


Stavros Mavroudeas Blog

SYRIZA is trying to limit popular discontent against its capitulation to EU and relaxes capital controls in banking

Stavros Mavroudeas

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On Sunday (19-7-2015) the SYRIZA-ANEL government announced that the ‘banking holiday’ imposed 21 days ago will be lifted and banks will re-open. Also, there will be a relaxation of the stringent capital controls imposed (see http://www.presstv.ir/Detail/2015/07/19/420892/Greece-banks-shutdown-debt-crisis).

This is an economic and political damage limitation move.

First, capital controls were in fact imposed on Greece by the ECB as it curtailed its provision of liquidity to Greek banks. ECB did so, in close co-operation with the EU, in order to coerce SYRIZA to accept the troika (EU-ECB-IMF) austerity program and implement it unconditionally.

Second, capital controls caused serious economic and political problems. The already gravely wounded by the troika austerity program Greek economy took a severe hit because of the additional problems in financing its activities. It is estimated that…

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