It can be said that the capitulation of the Greek government is a gigantic wear to the far left in Europe and in the world and that only uncompromising believers will get serious again any party of the extreme left which has the campaign platform to face the international financial capital. Syriza repeat failure of the leftist parties in the world, including Brazil with Lula and Dilma Rousseff governments which submitted to the dictates of finance capital. This was a victory of great importance for the European Union because sagged Tsipras who was elected on the promise to oppose the austerity programs imposed by the Troika to the Greek government.

1. 1
RENDITION OF GREECE BEFORE ITS CREDITORS
Fernando Alcoforado *
Article A capitulação do arrogante populismo do Syriza - e por que a
extrema-esquerda europeia está acabada (Rendition of arrogant populism of
Syriza - and the far-left European is finished), published by Instituto Von Mises
Brasil on website <http://www.mises.org.br/Article.aspx?id=2140#> features an
excellent analysis on the recent events in Greece. In summary, this article states the
following:
- Since the rise of the Greek government in early 2015, Greek Prime Minister Alexis
Tsipras, of the far-left Syriza party and his former finance minister, Yanis Varoufakis
adopted the strategy of blackmail Germany and all the European Union, threatening
give the debt default and thus destroy the entire euro arrangement if they do not obtain
on the one hand, forgiveness of government debt, and other, more financial help without
counterparts. Varoufakis was convinced that Angela Merkel and their peers would give
in to blackmail to prevent a possible break-up of the single currency.
- To show that this attitude had popular support, both called for a referendum to ask the
Greek people if he accepted the conditions imposed by the Troika (European Union,
European Central Bank and IMF). The Greek population, giving ample support to the
government, voted massively against the impositions of the Troika.
- The Troika with the European Union ahead, not only did not give in to blackmail, but
also proved willing to make the Greek government hanged himself with his own rope.
And that's when all the Greek strategy collapsed: Tsipras revealed it was mindless and
without strategy after his victory in the referendum; that the referendum was a farce;
and that he never wanted to leave the euro imagining that the consequences could be
catastrophic.
- Tsipras was the first coward screaming "arrego" And after all the bravado, he had to
back off and indulge in just about anything: the Varoufakis strategy had put in a trap
and Tsipras chose not to "die killing", which forced him to capitulate with dishonor.
- Less than a week after the victory of the referendum of Tsipras, the Troika not only
managed to make Tsipras hand over the head of Varoufakis, but also the even more
humbled, forcing him to vote in the Greek Parliament a much more rigorous than
agreement one that had been proposed prior to the referendum.
- Tsipras not only capitulated and retreated, as yet, in exchange for his bravado, he was
eventually forced to accept an agreement much harder than the original in exchange for
a new bailout package.
- To keep the financial support to the country and extend a new bailout package worth €
86 billion Euros, the European Union has imposed several drastic demands to Greece,
such as: new tax increases, reforms to the pensions system (raising the retirement age to
67 years that it is currently 50 years for women and 55 for men), privatization of the
electricity sector (unless they find alternative measures with the same effect), and
creation of laws to ensure "automatic spending cuts" if the government fails to fulfill
fiscal surplus targets.

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- As collateral for this new loan of € 86 billion Euros, the Troika has imposed the Greek
government transfers € 50 billion in state assets to independent funds overseen by the
Troika.
- The defeat of Syriza was absolute, as much as his supporters cling to the desperate
justification that Tsipras achieved a Greek debt restructuring commitment.
It can be said that the capitulation of the Greek government is a gigantic wear to the far
left in Europe and in the world and that only uncompromising believers will get serious
again any party of the extreme left which has the campaign platform to face the
international financial capital. Syriza repeat failure of the leftist parties in the world,
including Brazil with Lula and Dilma Rousseff governments which submitted to the
dictates of finance capital. This was a victory of great importance for the European
Union because sagged Tsipras who was elected on the promise to oppose the austerity
programs imposed by the Troika to the Greek government. With the approval of the
agreement for the next three years, the European Union will give money to the Greek
government to pay interest on Greek bonds that are in possession of several European
Union agencies. At the end of these three years, the cycle restarts. It is an endless
journey.
To capitulate, the Greek government Syriza party did not take into account, for
example, the successful experience of Iceland in Scandinavia in facing the financial
capital at the outbreak of the financial crisis in the United States that was struck
disastrously, as in the rest of Europe. In Iceland, financial speculation led the three
major banks to bankrupt. The unemployment rate has multiplied by nine in 2008 and
2010, whereas before, the country enjoyed full employment. Iceland's debt represented
900% of GDP (Gross Domestic Product) and the national currency depreciated 80%
against the Euro. The country fell into a deep recession, with a decline in GDP by 11%
in two years.
In 2009, when the government of Iceland wanted to implement the austerity measures
demanded by the IMF in exchange for financial aid of 2.1 billion Euros, a strong
popular mobilization forced him to step down. In early elections, the leftist forces won
with an absolute majority in Parliament. Thus, unlike the other nations of the European
Union in the same situation, scrupulously applied the recommendations of the IMF
demanding harsh austerity measures such as Greece, Ireland, Italy or Spain, Iceland
chose an alternative route. In Iceland, the government let the banks fail. They were
private institutions. It was not injected public money to save them. When, in 2008, the
three main banks - Glitnir, Kaupthing and Landsbankinn - collapsed, the Icelandic State
refused to inject public funds into them as he had done the rest of Europe. Instead, it
held its nationalization. Those responsible for the Icelandic economic disaster were
arrested, including former Prime Minister Geir Haarde.
Currently, the results of Icelandic economic and social policy have been spectacular.
While the European Union is in a recession, Iceland benefited from a growth rate of
2.1% in 2011 and 2.7% in 2012, plus a 6% unemployment rate. The country even had
the luxury of carrying out early repayment of its debts to the IMF. These results were
only possible because Iceland rejected the neoliberal shock therapy and developed an
alternative and efficient economic stimulus program. The Icelandic government applied
measures totally contrary to that advocated by IMF that allowed preserve the precious
Nordic model of social protection. It should be noted that Iceland has a very high
Human Development Index.

3. 3
The case of Iceland shows that there is a possible alternative to austerity policies that
are applied in Europe and currently in Brazil with the fiscal adjustment. These, besides
being economically inefficient, are politically costly and socially unsustainable. By
choosing to place the general interest above the interest of markets, Iceland shows the
way to the rest of the continent and the world to escape the dead end of neoliberalism.
The fact that, after that, Iceland is recovering much better than the Europeans
overwhelmed by the "austerity" is the explanation for the almost complete silence of the
international media about this country. The media is silent about Iceland that humbled
the financial system.
*Fernando Alcoforado, member of the Bahia Academy of Education, engineer and doctor of Territorial
Planning and Regional Development from the University of Barcelona, a university professor and
consultant in strategic planning, business planning, regional planning and planning of energy systems, is
the author of Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova
(Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São
Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado.
Universidade de Barcelona, http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e
Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX
e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of
the Economic and Social Development-The Case of the State of Bahia (VDM Verlag Dr. Muller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe
Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e
combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011),
Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012) and
Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV,
Curitiba, 2015).