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12 May, 2015

Evolving fast: Greece closer to BRICS!

globinfo freexchange

It has been mentioned already by this blog that Greece could seek an alternative to the neoliberal bloc that drowns country in debt. Indeed, we have rapid progress on this matter, as Greece was invited to join BRICS development bank!


Greek Prime Minister Alexis Tsipras on Monday held a telephone conversation with Russian Deputy Finance Minister Sergei Storchak. During the conversation, Storchak invited Greece to become the sixth member of the New Development Bank of BRICS countries, Greece's Syriza party reported on its website. Storchak is a representative of the BRICS Bank which is now being established.

'The Prime Minister thanked Storchak and said he was pleasantly surprised by the invitation for Greece to be the sixth member of the BRICS Development Bank. Tsipras said Greece is interested in the offer, and promised to thoroughly examine it. He will have a chance to discuss the invitation with the other BRICS leaders during the 2015 International Economic Forum in St. Petersburg,' the report read.

On July 15, 2014, in Fortaleza, Brazil, the BRICS member countries signed an agreement to establish the $100 billion New Development Bank, formerly referred to as the BRICS bank, and a reserve currency pool set at $100 billion. Russia will contribute $18 billion to the pool, along with India and Brazil. China is expected to contribute the largest share of $41 billion, with South Africa chipping in the remaining $5 billion. The bank is expected to be one of the largest financial institutions to fund various infrastructure projects in the BRICS countries and emerging economies.

It has been mentioned also that Greece should play the card of alternative funding, through the participation in other groups of countries and organizations against the implacability of its lenders, who insist on catastrophic neoliberal policies:

... Greece may start to seek other alternatives. Apart from the BRICS solution, Greece may also turn to the Asian Infrastructure Investment Bank (AIIB), as many countries, even from the hard core of the Western bloc already applied to join. Latest examples, Portugal and Iceland ...

Greece could play the BRICS "card" alone, but it would be much easier to be done together with the rest of the PIIGS. A coordinated strategy by the PIIGS will probably force the eurocrats to retreat and make Europe to change course. Otherwise, there will be no alternative for PIIGS but to join BRICS!

Greece's Deputy Foreign Minister, Nikos Chountis, confirmed that Greece examines a plan B in case that the negotiations with the European "partners" about the debt will be driven to a dead end. [...] “There have been proposals, offers I would say, from Russia, recently after the election, for economic support as well as from China, regarding help, investment possibilities,” Chountis said, ...

As BRICS are in the processes to decouple economies from the Western neoliberal monetary monopoly, they could bring back the gold standard as a base for their transactions, which is much more steady than the paper money unstable financial bubbles. They are ready, because they are emerging economies with billions of potential consumer tanks and can attract other countries too being victims of the international financial mafia, like Argentina and Greece.

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