EU Emergency Summit must deliver debt justice

On the eve of the EU Emergency Summit which will take place tomorrow, Thursday 21 July, Director of Jubilee Debt Campaign Nick Dearden said: “The failure of European leaders to come up with a just solution to the financial crisis has pushed Europe to the edge of calamity and forced ordinary people to suffer terrible hardships.”

“German Chancellor Angela Merkel has talked about the need for the banks to take a hit on their share of Greek debt. She is right – but both too timid and too slow in her proposals. 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.


“Serious economists do not doubt that Greece will default. European leaders are hoping this will happen once the banks have already been substantially repaid, so the pain will be landed squarely on the people of Europe. By pursuing this disastrous strategy, Italy and Spain have now been dragged into the crisis.

“Democracy and economic accountability have been tested to breaking point by this crisis. It is unconscionable that unelected and dogmatic civil servants like European Central Bank Chief Jean-Claude Trichet are dictating policies to the people of Greece and other countries. It is unacceptable that the livelihoods of the citizens of Spain and Italy are being decided by speculators and private Credit Ratings Agencies. This is a mirror image of the plight of many millions of people in impoverished countries.

“The fight against poverty and inequality depend on radical changes to the financial and economic system. What happens in Europe today will have a major impact on the fight against poverty across the globe. For this reason, we support the Greek people in their struggle to achieve debt justice.”

Contact Jubilee Debt Campaign on 020 7324 4722 or 07932 335464

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