by Zero Hedge
The radical wing of Greece’s Syriza party is to table plans over coming days for an Icelandic-style default and a nationalisation of the Greek banking system, deeming it pointless to continue talks with Europe’s creditor powers.
Syriza sources say measures being drafted include capital controls and the establishment of a sovereign central bank able to stand behind a new financial system. While some form of dual currency might be possible in theory, such a structure would be incompatible with euro membership and would imply a rapid return to the drachma.
The confidential plans were circulating over the weekend and have the backing of 30 MPs from the Aristeri Platforma or ‘Left Platform’, as well as other hard-line groupings in Syriza’s spectrum. It is understood that the nationalist ANEL party in the ruling coalition is also willing to force a rupture with creditors, if need be.
“This goes well beyond the Left Platform. We are talking serious numbers,” said one Syriza MP involved in the draft.
“We are all horrified by the idea of surrender, and we will not allow ourselves to be throttled to death by European monetary union,” he told the Telegraph.
Syriza’s Left Platform has studied the Icelandic model, extolled as a success story by the International Monetary Fund itself.
“The Greek banks must be nationalised immediately, along with the creation of a bad bank. There may have to be some restrictions on cash withdrawals,” said one Syriza MP.
“The banks will go ape-s*** of course. We are aware that there will be a lot of lawsuits but at the end of the day we are a sovereign power,” he said.
Syriza has a strong ideological motive to strike at the financial elites. They view the banks as the nerve centre of an entrenched oligarchy that has run the country for more than half a century as a family business. Forcing these institutions into bankruptcy provides cover for a socio-political purge, best understood as a revolution.
Iceland is a tempting model for Greece, but the parallel can be pushed too far. The Nordic country seized control of its three big banks – Glitnir, Kaupthing, and Landsbanki – when the crisis span out of control in late 2008.
Olgu öeldud, et Island pole õiges paradigmas (näiteks nad peavad valitsuse defitsiiti probleemiks), kuid kindlasti on see parem kui neoliberaalne eurokonsensus.