Saturday, June 27, 2015

A Greek Referendum on Creditor Demands: Orchestrated Impediments to Reaching the People

On June 27, 2015, Greek Prime Minister Alexis Tsipras announced a referendum on whether Greece should accept additional austerity in the form of tax increases and pension cuts as demanded by the state’s creditors. Putting the ultimatum from lenders to a popular vote translates into political theory as governmental sovereignty—the portion retained by the E.U. state—voluntarily submitting to the popular sovereign, which is the more fundamental sovereignty in any democracy. “Our responsibility is for the future of our country. This responsibility obliges us to respond to the ultimatum through the sovereign will of the Greek people,” Tsipras said in a televised address.[1] More abstractly, deferring to the people on a major policy question is the responsibility, or duty, of any democratically-elected government. Sadly, few heads of government and legislatures even acknowledge this duty, let alone act on it. In this essay, I address the Greek case as a way of illustrating a few of the drawbacks of appealing to popular sovereignty through a referendum, while still holding that the duty itself is valid. I contend in particular that Tsipras’s Greek opponents, E.U. officials, and the state’s lenders (through government officials in other E.U. states) intentionally sought quite disrespectfully to manipulate Greece’s popular sovereign by distorting the question on the referendum to get a “yes,” or “oxi” result. That is, federal and state officials in the E.U. sought to scare and confuse the popular sovereign of one state—bullying, in effect, the basis of democracy itself for power and money.

Greece's PM Tsipras looking rather fatigued after meetings on the bailout. (John Thys AFP/Getty)

The full essay is at "Essays on the E.U. Political Economy," available at Amazon.



1. Lefteris Papadimas and Renee Maltezou, “Greece’s PM Tsipras Calls Referendum on Bailout Deal,” The Huffington Post, June 26, 2015.