European Union leaders have been urged to deliver “debt justice” as they prepare for an emergency summit on the economic crisis which will take place tomorrow (21 July).
The call came from the Jubilee Debt Campaign (JDC), based in the UK, who accused EU leaders of allowing “ordinary people to suffer terrible hardships” because of the failure of the powerful to come up with a just solution.
They argued that what happens in Europe today will have a major impact on economics across the globe.
On the eve of the summit, JDC said that democracy and economic accountability have been “tested to breaking point” by the current crisis.
The organisation insisted that the fight against poverty and inequality depends on radical change to the financial and economic system.
JDC director Nick Dearden said it was “unconscionable that unelected and dogmatic civil servants” are dictating policies to the people of Greece and elsewhere.
“It is unacceptable that the livelihoods of the citizens of Spain and Italy are being decided by speculators and private Credit Ratings Agencies,” added Dearden, “This is a mirror image of the plight of many millions of people in impoverished countries”.
German Chancellor Angela Merkel has recently talked about the need for the banks to take a hit on their share of Greek debt.
“She is right,” said Nick Dearden, “But both too timid and too slow in her proposals”.
He explained, “Democracy and recovery in Greece and other peripheral European countries depend on a cessation of repayments and the inauguration of a full and comprehensive debt audit to guide a just debt solution, which will undoubtedly include a substantial reduction in Greece’s debts.”
JDC accused European leaders of hoping that Greece would not default until the banks have been substantially repaid, ensuring that the burden would fall on the people of Europe rather than the bankers.
“By pursuing this disastrous strategy, Italy and Spain have now been dragged into the crisis,” added Dearden.