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PASOK, Nea Dimokratia Tried To Restructure Party Debts

 Socialist PASOK and conservative Nea Dimokratia, Greece’s biggest parties that governed the country for almost four decades, seem to believe theirs voters are a flock of obedient sheep. Therefore, they inserted an amendment to restructure their own debts into a bill concerning livestock breeding and livestock facilities. The amendment was inserted in the livestock bill “in the middle of the night”, so to say, when all eyes were turned to the Greek bond swap.

The amendment would allow PASOK and ND to write off unpaid interests of their massive debts. Among others, the proposal foresaw cutting interest rates from 8% down to 4%, and decrease party loan guaranties from 60% of the state funding down to 50%.

However the two parties were forced to withdraw the proposal, after strong reactions by two smaller parties, Democratic Left and Democratic Alliance.

According to news portal, the two parties debts amount 244.2 million euro. The portal reports that for the year 2011, the state funding of the Greek political parties was 54 million euro, that is 5.2 million euro less than 2010. PASOK was funded with 21.8 million EUR, Nea Dimokratia with 17 million,  KKE 5.2 million, LAOS 4.4 million, the SYRIZA 3.9 million and the Ecologists Greens 1.8 million.

The PASOK/ND debt restructuring was to take place, while millions of private households have no idea how to pay back their loans to the banks, and while small investors feel unprotected from the offcial debt-restructuring PSI.

According to the new laws, the state can confiscate debtors’ assets and even properties, even a citizen owes more than 300 euro to the Greek state.

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  1. Unbelievable !!!
    Why should the Greek state, the Greek people, support any party at all with taxpayer’s money.
    They should run their campaigns with private contributions, arranging rock concerts or whatever.
    But NOT with public funding.

  2. “Therefore, they inserted an amendment to restructure their own debts into a bill concerning livestock breeding and livestock facilities. ”

    Surely this must have been an innocent accident, no?

    All kidding aside, this is simply surreal.

  3. Indeed, unbelievable! They want to misuse their legislative power to improve the finances of their own parties? Scandalous!

    However, state funding of parties is quite common in Europe, there isn’t much wrong with that when all parties in parliament profit from this is in a fair way, with reasonable support. It’s a compensation for the impact of legal limits for donations to the parties. Hmm, do you think the US system, where both major parties sell out to big money interests, is actually better, Nils?

  4. keeptalkinggreece

    at least in US the sponsors are known. The big probelm here is transparency and party financing.

  5. Unbelievable !!!


    …this is simply surreal.

    Welcome to Greek reality…
    Somehow I have the feeling that they tried this not long (couple of weeks) ago also? Or do I have a total ‘senior’ moment now.

  6. keeptalkinggreece

    no, you are right. It was the first attempts, I think. It does take sometime for the thought to be brought down to paper. It also has to pass the relevant committee, I think.

  7. Hello.
    I think you are right with the comment about US party financing.
    But it seems strange, that these parties, which indeed are the couse to the Greek misery are rewarded in this way.

  8. You are right Antonis UNBELIEVABLE. Just when you think we heard it all. They are not as asleep at the wheel as we thought.

  9. keeptalkinggreece

    the giver is the same with the receiver