The 3rd Memorandum debt refinancing pact signed between the Troika (European Commission, the IMF and the European Central Bank) and the Syriza-led government in Greece will have disastrous effects on the Greek working class and working people. It constitutes a monumental betrayal by the Syriza (social democratic) party of its previous promises to stand up to the European bankers and to end and reverse austerity imposed by previous bourgeois governments. The various attempts by Syriza (or its supporters abroad) to justify or excuse this sell-out agreement – or to deflect responsibility away from the Tsipras government in Athens – fail to alter that basic reality.
As the Communist Party of Greece (KKE) correctly noted in its recent statement, the government is essence is burdening the people with a new loan worth 86 billion € and savage measures that accompany it, such as the further reduction of the people’s income, the new heavy taxes, the maintenance of the new property tax, the significant increase of VAT on items of mass popular consumption, the reduction of pensions, the implementation of a new and worse social-security regime, the gradual abolition of supplementary assistance for poor pensioners, and the wholesale privatization of public assets.