- Created: Thursday, 01 December 2011 22:14
- Written by Andrew Alexander
The resignation of Greek Prime Minister George Papandreou on 9 November was stark proof that it is European capital, not bourgeois democracy, that holds sway in the eurozone.
Greece needed an 8 billion euro installment from its 110 billion euro bailout agreed in May 2010, without which the country will default before Christmas. The government was also negotiating a second bailout worth 130 billion euros which would allow banks and other private holders of Greek bonds to write off 50 percent of their Greek debt. However, such bailouts involve massive austerity measures, including huge cuts in welfare, such as a overhaul of the state pension system as well as cuts in health, housing and education.