Αγαπητέ Καγκελάριος

Letter sent prior to a meeting in Berlin today between Alexis Tsipras and Angela Merkel

Dear Chancellor 

I am writing to you to express my deep concern about developments since the 20th February 2015 Eurogroup agreement, which was preceded two days earlier by a letter from our Minister of Finance* outlining a number of issues that the Eurogroup ought to resolve, issues which I consider to be important, including the need:

(a) To agree the mutually acceptable financial and administrative terms the implementation of which, in collaboration with the institutions, will stabilise Greece’s financial position, attain appropriate fiscal surpluses, guarantee debt stability and assist in the attainment of fiscal targets for 2015 that take into account the present economic situation. 

(b) To allow the European Central Bank to re-introduce the waiver in accordance with its procedures and regulations. 

(c) To commence work between technical teams on a possible new Contract for Recovery and Development that the Greek authorities envisage between Greece, Europe and the International Monetary Fund, to follow the current Agreement. 

(d) To discuss means of enacting the November 2012 Eurogroup decision regarding possible further debt measures and assistance for implementation after the completion of the extended Agreement and as a part of the follow-up Contract.

Based on the in-principle acceptance of this letter and its content, the President of the Eurogroup convened the 20th February meeting which reached a unanimous decision expressed in a communiqué. The latter constitutes a new framework for the relationship between Greece, its partners, and its institutions.
More precisely, the 20th February Eurogroup agreement stipulated a number of points outlining this new framework and process, including:

(a) The Greek authorities will present a first list of reform measures, based on the current arrangement, by the end of Monday, February 23. The institutions will provide a first view whether this is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review. This list will be further specified and then agreed with the institutions by the end of April. 

(b) The Greek authorities have expressed their strong commitment to a broader and deeper structural reform process aimed at durably improving growth and employment prospects, ensuring stability and resilience of the financial sector and enhancing social fairness. The authorities commit to implementing long overdue reforms to tackle corruption and tax evasion, and improving the efficiency of the public sector. In this context, the Greek authorities undertake to make best use of the continued provision of technical assistance. 

(c) We remain committed to provide adequate support to Greece until it has regained full market access as long as it honours its commitments within the legal framework. 

Based on this common ground, the Minister of Finance sent to the President of the Eurogroup a letter, dated 23rd February 2015, with the aforementioned “first list of reforms” [see (a) above] proposed by the government. On 24th February 2015 the said “first list” was accepted by the institutions as “sufficiently comprehensible to be a valid starting point for a successfully conclusion of the review” by 20th April 2015.
In order to expedite the process, the Ministry of Finance sent a letter to the President of the Eurogroup on 5th March 2015 urging that the process of technical discussions on specifying further the “first list of reforms” begin immediately. In the same letter the Minister of Finance attached seven examples of how the reforms in the “first list” could be developed and specified further. 

Following a positive reply by the President of the Eurogroup (dated 6th March 2015) and the subsequent Eurogroup meeting of 9th March 2015, the first round of discussions of the Brussels Group (comprising of the four institutions – EC-ECB-ESM-IMF – plus the technical team of the Greek government) took place, in Brussels, on Wednesday 11th March dealing with both political and technical issues. At that meeting it was also decided that technical teams of the institutions would travel to Athens on the following day for on-site fact-finding to assist the Brussels Group negotiations.In the context of the above, I feel it is critical to alert you to a number of developments which are either undermining the spirit of the agreement reached or making their fulfilment perilously difficult.

(a) On 4th February the European Central Bank lifted the waiver for minimum credit rating requirements for marketable instruments issued or guaranteed by the Hellenic Republic, while declaring that the waiver would be restored when an agreement was reached at the level of the Eurogroup. Moreover, even since the Greek banks were referred to the Bank of Greece’s ELA facility, the ECB has been raising the ELA’s ceiling at shorter intervals than normal and at rather small increments that incite speculation and spread uncertainty vis-à-vis Greece’s banking system. Additionally, the ECB determined that Greek banks cannot hold more T-bills than they did on 18th February 2015, thus restricting their participation to well below the T-bill cap. (Please note that, in the summer of 2012, when a new Athens government was in a similar situation to ours, ELA was being expanded generously, the T-bill issuance cap was lifted to allow the government to finance its debt repayments to our creditors, and banks were not restricted to any limit corresponding to a prior date’s holding. In that manner the government of the time and the Eurogroup were granted sufficient ‘space’ to reach an arrangement that allowed the Greek banks to move away from ELA and back to normal ECB financing methods.)  

(b) Following past failures (of the previous government) to complete the scheduled reviews, disbursements under the loan agreements with the ESM-EFSF were discontinued (while those of the IMF were similarly delayed), yielding a substantial financial gap in 2014 and 2015. This includes the profits from the ECB’s SMP-sourced bond redemptions, which the ECB distributes to member states on the understanding that they be passed onto the Greek government.

Given that Greece has no access to money markets, and also in view of the ‘spikes’ in our debt repayment obligations during the Spring and Summer of 2015 (primarily to the IMF), it ought to be clear that the ECB’s special restrictions [see (a) above] when combined with the disbursement delays [see (b) above] would make it impossible for any government to service its debt obligations. Servicing these repayments through internal resources alone would, indeed, lead to a sharp deterioration in the already depressed Greek social economy – a prospect that I will not countenance. 

Meanwhile, I also regret to report that little progress has been made in the negotiations between the technical teams in Brussels and Athens. The reason for the extremely slow progress is that the institutions’ technical teams, as well as some of the actors at a higher level, seem to show little regard for the 20th February Eurogroup agreement and are, instead, committed to proceeding along the lines of the Memorandum of Understanding that pre-dates both the 20th February agreement and 25th January 2015 – the date on which the Greek people elected a new government with a mandate to negotiating the new process established by the 20th February Eurogroup agreement. It is difficult to believe that our partners consider that a successful reform drive can be carried out under such restrictive and pressing constraints, including the financial squeeze that my government is currently labouring under. 

The Greek government remains steadfast in its commitment to fulfil its obligations to its partners within the framework of the 18th February letter and 20th February Eurogroup decision. However, I am also obliged to make clear to you that, in order to continue to fulfil our obligations, as we have done up to now, progress has to be made on a number of fronts:

(a) After 20th February Eurogroup agreement and the approval of the extension of the MFAFA by member states, and given that the technical discussions with the institutions are under way, the ECB should return the terms of finance of the Greek banks to their pre-4th February 2015 state. 

(b) The process by which the reforms proposed by the Greek government, and their evaluation, must be immediately clarified so as to make a successful conclusion of the review by the end of April 2015, as well as to specify the recommencement of disbursements with the progress of the negotiations. 

(c) The process must be specified (as well as the participants and timetable) by which further arrangements (which my government would like to take the form of a ‘Contract for Greece’s Recovery and Development’ – including provisions on Greece’s public debt in the spirit of the November 2012 Eurogroup agreement) will be agreed to before the end of June 2015.

In conclusion, Greece is committed to fulfilling its obligations in good faith and close cooperation with its partners. To this purpose we are committed fully to the process specified in the 20th Eurogroup agreement so as to begin immediately the work of implementing reforms crucial to our economy’s prospects of long term development within an inclusive Europe. With this letter, I am urging you not to allow a small cash flow issue, and a certain ‘institutional inertia’, to not turn into a large problem for Greece and for Europe.

*Letter sent by Yanis Varoufakis, the Greek finance minister, on 18th Feb 2015, to Jeroen Dijsselbloem, the Dutch finance minister who chairs the eurogroup, formally requesting an extension of the existing bailout, something Tsipras had resisted since his government's election. See also Yanis Varoufakis' blog entry for 20th March in which he picks up on the matter of a subversive video circulating on social media. 

Diplomacy in Berlin...

23rd March 2015: The German Chancellor and Prime Minister of Greece appear at 49.50 on this clip...

"Angela Merkel's in Athens today"

On the whole Linda and I don’t go walking in Handsworth and other parts of Birmingham. I do. I also cycle in and out and around most of the city within a radius of about three miles, sometimes further when cycling along the canal towpath to Amy’s house on the edge of the city. Lin does not cycle. In the Highlands my walks, at least in the last few years, have been solitary but for the dogs as Linda doesn’t share my feelings for that landscape – “too bare” she said, preferring the pastures and woods and river banks of Herefordshire and Gloucestershire around our Rock Cottage in the Forest of Dean. It’s in Corfu starting with Ano Korakiana itself that we have recovered the pleasure of shared walks. We set out with our long olive sticks – gifts from Mark; mine he topped with a deer’s cloven foot for my thumb, Lin’s more crooked with a fork for hers. Leaving the house so equipped our neighbours nod 

“Βόλτα; a walk?”

“Ναι, βόλτα”

 Walking in and around Ano Korakiana is one of our pleasures. It’s thus we see its agriculture

Grazings below Ano Korakiana

“Angela Merkel’s in Athens today.”
Richard Pine reminded me over Tuesday lunch at Bellissimo – a place Lin and I like, in Lemonia Square, off Nicholas Theotoki, just across, as I’ve been told, from an old brothel and its annexe. It was unlikely that the troika would be anything but unhappy about progress on the – how many was it? – ninety-one – perhaps - reforms attached to the third bail-out
“Of which” said Richard “they’ve done part of about three...I'm writing another op-ed at once on the basis the excrement's about to hit the air-conditioning"
Our conversation - over a shared Greek salad, omelets, sausages and bread with house white wine - drifted through the events that would follow a refusal of more money for Greece from Europe; a national bankruptcy, civil servants unpaid; leaving their desks to find other ways to support their families; national stoppages, direct and indirect…we can’t add much; what’s it feel like to leave the road on a high bend? A moment, almost of relief, of a decision made for you, silence, floating in the peace, soaring into the unknown, then – gravity applies – and “the film cuts to the view of a spectator; a cacophony of things plunging."
Earlier in the morning I’d remembered that on the previous evening’s walk, as Lin and I came down the zigzag at the western end of the village, below Mougades, we noticed, inside one of the hairpin bends, opposite wheely bins and the last bus-stop, a broad concreted circle, ever so slightly convex, a parking space under branches, between shrubs and flowers.

“Could that have been a threshing floor?”
Lin looked at it having seen my photos of them – of an alon, ἅλων, signature of a pastoral economy.
“Maybe”
“No no. It’s a large well, covered over. A cistern perhaps. Convenient beside the road”
Our conversation in Lemonia had drifted to discussing agriculture. I’d liked Richard’s reference to the ‘idea of terroir… rootedness of people…intimate relationship between land and people…vines and their olives.’

Ο Παύλος - Ήταν στο πάρτι γενεθλίων μας

Earlier I’d asked an old lady if she’d always lived in Ano Korakiana which of course she had. In my ragged Greek I said “Where is the alon, the threshing floor”
Katerina wandered over and leaned on the railing on Democracy Street looking down
I repeated my question, doubting I was making myself intelligible
They discussed this and Natasha spoke to them from her upper window above us, from where she often has conversations with neighbours in the street. It’s why I was so glad we recovered our balcony - to be able to have conversations between the house and the street. I held up a crude drawing I’d made of a circle with two stick figures holding threshing poles, looking as if they were fighting
“To make corn” I said in English which she understands “From wheat”
“Yes I know. Alon”
There was a spirited discussion between the three women.
“Would Lefteris know?” I asked Natasha
“He makes wine”
Gradually my lack of observational skills sunk in. Of course, Ano Korakiana doesn’t make flour nor thresh out corn. It’s a village of vines and olives; of sheep, goats, chickens, turkeys, guinea fowl, rabbits and geese and some pigs and donkeys. Natasha was already running down a long list, tapping the fingers of each hand as she leaned on her balcony
“Spinach.Tomatoes. Marrows. Squash. Melons. Peppers. Cabbages. Lettuce….”
“Of course" I tried to catch up "and oranges and lemons and…and bees…and nuts” I tried to recover.
“But there is no alon”
Later in town Richard, who I was telling about this, asked
“How much does it cost to process a kilo of olives?”
I prevaricated, describing the organisation of the machinery for extracting oil from olives as shown me by Sebastiano Metallinos last February at the Co-op. The farmer delivers his olives – say 50 kilos; they go into a hopper and are washed of leaves and twigs; washed twice, I think; the pomace piles up to be used later for compost and, in some cases, to be made into blocks for stove fuel. Did the olive stones go into the masher or were they removed into the pomace? I didn’t know. There’s no longer a circular grindstone. The mash goes through two centrifuges. This is kept for what? Olive paste. At the other end of the sequence a slightly turgid flow of green gold oil pours from a horizontal pipe into waiting containers.
“There’s not an olive press in Corfu that makes any money. I thought there was one up by you in Peritihia that I was told was a working business, but I’ve since heard it's a rich man’s hobby”
“So how much does it cost to get oil from a kilo of olives, say?” repeated Richard
“I forgot to ask about prices. I don’t know. How does any village make a business of agriculture now? Everything has to be vast, intensive, mechanised and regulated with the means of export to places across the world. We know all that. Ano Korakinia’s agriculture was always more or less local, sustaining the village. Now it looks as if we are surrounded by vegetable gardens, allotments, at best, orchards, small holdings – half an acre of olives here, a few rows of vegetable there, a small vineyard, a patchwork of roughly defined spaces, fenced, gated, with an apothiki."

That evening we were walking by the co-op when Sebastiano, who’s this year’s Chairman, drew up outside one of its double doors and got out out of a truck with a trailer. He was in dungarees, chatting with his passenger, one of the Co-op committee.
“Good evening, Sebastiano. I have a question”
“Go ahead”
“How much does it cost to process a consignment of olives?”
"Ahah, you only want to know the cost of something that is a matter of the heart”
He peers at me with a broad ironic grin holding a hand to the centre of his chest.
“Of course of course, Sebastiano. I have a curious friend. As you know I care only about matter of the heart”
“Of course, Of course. The price is in litres not kilos. Early in the season…”
“You mean now?”
“From now until next June even. The olives produce less oil at the start – only about 12% of the original weight becomes oil, and that costs 80 cents a litre. Later in the season the olives produce more like 35%-40% oil and then the oil costs 30 cents a litre.”
Lin remarked “They don’t half mark it up by the time it’s in the shops...but going back to what Sebastiano's telling you, “I still think the price is in kilos….which would work out at 10 cents a kilo year round."
"How do you mean? You know I failed 'O' level maths"
"At the start of the season when you’re getting 12% - about one eighth - it takes 8 kilos of olives to make one litre of oil. Later in he season - the best part - it only takes about 3 kilos of olives to make one litre of oil. 8 kilos at 10c makes 80c at the start of the season; 3 kilos at 10c makes 30c later in the season."
"Oh right. Yes. Hm?"
I pointed to the rusting machinery beside the Co-op that I’d noticed earlier in the year.
“That was the first machinery for processing olives?”
“Some of it, yes, but some of it was for grinding corn” said Sebastiano
I suddenly remembered when he’d been showing me round the co-op earlier in the year that Sebastiano had mentioned bread-making as well as a shop. He’d also shown me the space where the belt had run to the engine that had once generated Ano Korakiana’s electricity – in the 1920s, or earlier, the first village in the island, in the the country possibly, to have its own electrical power.
“So where did the corn come from?” asked Lin
“From hereabouts” He pointed downhill
So perhaps there has been a threshing floor in Ano Korakiana, an alon, and wheat harvested from flatter ground below the village was brought up to have the corn beaten from it.

Flatter land below the village

** ** ** **
 I had a salutary lesson from Mark about knots. It was supper in his and Sally’s house last night. along with her brothers Tim and Henry and R, an octogenarian mariner with a yacht at Benitses. We’ve been planning the arrangements for slipping Summer Song and replacing her engine. Discussing with R why a new engine was needed I confessed the stupid thing that I’d allowed to happen on the boat in a prolonged katabatic squall off Barbati three summers ago when we were motor-sailing back towards Ipsos through short steep seas, leaning over and getting wet. The jib sheet had slipped its figure of eight stop knot, pulled free of its deck eyelet, dragged overboard and wrapped round the prop-shaft. I’d glimpsed it over the windward side running taut under the water and knew at once what had happened. We reversed the engine and pulled it free.
Not good, eh? Worse to come. On the other tack the same thing happened; this time stalling the engine. We re-started in neutral, went into reverse and recovered a well ripped sheet end. I freed the rest in the harbour next day, diving beneath the hull with goggles.
“So what” I asked “is the normal knot to secure the end of a jib sheet?”
“Figure of eight” said someone.
I looked meaningfully at Lin who’d been on my court martial for this event - repeatedly.
“No. No” said the others, including Mark.
He fetched a length of rope; tied a figure of eight in it and banged it on the table a few times - just what a brisk breeze will do. His knot came loose in seconds.
“Give it here” I said, skeptical, and tied an eight knot tighter, banging it on my end of the table
“There, that’s holding”
Meantime Henry had tied a kind of three ring blood knot in the other end of the rope. I was looking at this doubtfully, continuing to bang my tight figure of eight on the table, when of a sudden I was looking at a clean end of rope. It had taken just seconds longer than Mark’s to unravel. I didn’t see it happen. One instant the knot was there, the next - gone.
“Jeez! Thanks Mark”
I was chastened. Lin looked vindicated. Seldom have I had such a salutary demonstration of the frailty of a device I’ve relied on since I learned to sail. I studied Henry's knot; Lin memorized it.

And now the weather's shifting towards autumn; leaves falling, and some rain, with the landscape now and then turning ochre as though viewed through a filter. The oranges below the balcony are innumerable, green - ready for Christmas - and our lemons are, at last, turning yellow. The thought of leaving is deplorable; feels almost like desertion.

*** *** ***
Syed Ahmed’s report dated 3 October - summarized - to our ward committee, followed a request for news about what progress on laying out sports fields, a sports pavilion and children’s playground next to the Victoria Jubilee Allotments (VJA).

REFERENCE:  VICTORIA JUBILEE ALLOTMENTS S106 Agreement (2003/01514/LA) – Persimmon Homes

Purpose 1.1 To update the Ward Committee on the delivery of the obligations arising from the S106 Agreement, (the Agreement) since the last briefing (18/07/2012).

Background  2.1 On 23rd August 2004, the City Council secured an Agreement for part redevelopment of the former Victoria Jubilee Allotments. The Agreement contained obligations for the developer, Westbury Homes (now Persimmon Homes) to deliver the following:  

2.2 In May 2011, the City Council (Legal Services) wrote to Persimmon Homes, reminding them of the S106 obligations and advised that legal action would be taken, unless there was a new commitment to the satisfactory and timely completion of the S106 projects. 

3 Progress / Action Outstanding  3.1 Affordable Housing Provision by Persimmon Homes. City project officer overseeing: Simon McDonald. Completed - 24 affordable housing units have been built and are occupied through partnership arrangements with Midland Heart and Family Housing Associations. 

3.2 New allotments: Overseeing city council service and project officer - Parks & Nature Conservation, Bob Churn. These were transferred to the Council on 11th August 2010 and £21,620 commuted maintenance was paid in September 2011. 3.3 Handsworth Park and Play Area Improvement: Overseeing city council service and project officer - Parks & Nature Conservation, Bob Churn. A contribution was received and work has been carried out as part of the Park’s major Heritage Restoration project. £25,000 was received for Play Equipment to enhance the Park’s play area.

3.4 Sports Pitches. Overseeing city council service and project officer - Children, Young People & Families (CYPF), Gillian Dovey. These have been laid out but have not been transferred to the CYPF portfolio, as there were defects. The Project Officer is in ongoing discussions with Persimmon Homes to rectify the outstanding defects. The Project Officer carried out a site visit on 28/09/2012 and confirms that work is underway on the cricket square and it appeared that the ground has been levelled. The Project Officer is now organising an inspection to finalise the completion of this project. 

3.5 New Public Open Space, incorporating a children’s play area. Overseeing service and project officer - Parks & Nature Conservation, Bob Churn. Project Officer has now received outline specifications of the scheme. The Public Open Space has not been laid out within the development, but Persimmon Homes have submitted draft design proposals, including an informal children’s play area. The Project Officer is now seeking detailed schemes specifications from Persimmon Homes. Upon completion the City Council will receive a commuted maintenance sum of £27,350 for this scheme. 

3.6 Sports Pavilion. Overseeing city council service and project officer - Children, Young People & Families, Gillian Dovey. Construction is outstanding. The Project Officer has requested a formal update from Persimmon Housing with timescale form implementation of its project. 

Recommendations 4.1   That the Ward Committee note the progress made since the last briefing and that further progress is reported to the Ward Committee in the future.

Contact Officer: Syed Ahmed, North West Planning & Regeneration Team (0121) 464 9839 syed.ahmed@birmingham.gov.uk

Plan of the VJA site showing the allotments next to the projected sports areas

I wrote back to our ward councillors on 8 Oct’12:

Dear Ward Councillors. I appreciate the latest news following the meeting between Ghaz Hussein and the Project Officers responsible for following up on the implementation of the 2004 S106A on the Victoria Jubilee.  Para’s 3.4, 3.5, and 3.6 in the 3/10/12 report to Lozells and East Handsworth Ward Committee describe a situation unchanged since you drew this matter to the relevant officers' attention in June this year.  

I’m not clear why para 4.1 states 'That the Ward Committee note the progress made since the last briefing and that further progress is reported to the Ward Committee in the future’. 

What progress?

We knew that the S106A payments described between para 3.1 and 3.3 had been made and their provision implemented. The issue raised in June 2012 (and indeed in 2011 on several occasions) related to the lack of discernible progress on the playing fields, play area and sports pavilion.  We heard over 18 months ago why these delays were occurring - state of the sports pitches (3.4), objections by a tiny minority of new residents on the Victoriana estate to the positioning of the children’s play area (3.5) and differences regarding quality standards for the projected sports pavilion (3.6).

These problems have been well rehearsed. Unless I’m missing something, Syed Ahmed’s report repeats what was already known - certainly to councillors and other interested parties.  Naturally we all hope that your representations on this matter will end the extended delay in the full implementation of the 2004 VJA S106A.

It may be that positive things are happening that are not referred to in the report copied to me, but nothing in it suggests there has been progress since this time last year or even before that.  Is it possible to elicit a date when the playing fields might be available to the community? Are we going to miss out yet another sports season in 2013 before these start to be used?

The attached report makes no mention of the matter of access to the sports area. It would seem that there are bound to be issues arising in making it convenient for schools and other users to get into the site via Crick Lane, especially in coaches and minibuses. Will the children’s play area be accessible from the Victoriana Estate or will parents from there have to leave the estate and walk or even drive from their homes onto Hamstead Road and back up Holly Road and Crick Lane? Has this matter even been considered yet, or does it lie in wait as a further excuse for delay? Yours sincerely, Simon Baddeley, Handsworth Allotments Information Group (HAIG) s.j.baddeley@bham.ac.uk