Already sold most of Greece’s airports, gas transmission, oil refineries, power company, post office, national highways, water company. The creditors also want Greece’s government ministers removed from oversight of national assets — they’ll be replaced with managers appointed by the creditors. Why does this matter? First because it makes no sense to sell off valuable assets in the middle of Europe’s worst depression in 70 years. Those industries could generate revenues to help the Greek government rebuild the economy. In fact, the vast majority of the funds raised will go back to the creditors in debt repayments, and to the recapitalisation of Greek banks.
So the privatisations aren’t to do with helping Greece. The beneficiaries are corporations from around the world, though eyebrows are particularly being raised at the number of European companies – from German airport operators and phone companies to French railways – who are getting their hands on Greece’s economy. Not to mention the European investment banks and legal firms who are making a fast buck along the way. The self-interest of European governments in forcing these policies on Greece leaves a particularly unpleasant flavour.
Most important is the inequality this will entrench in Greek society for decades to come. Of course the fact that the state currently holds these assets is no guarantee of democracy. Clientelism is rife in Greece. But the answer is transparency and democracy, just as German citizens are currently trying to take back energy companies into collective ownership because they see this as a prerequisite for fair pricing and supporting renewable energy. (By Cory Doctorow from boingboing.net via Naked Capitalism)