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Wake up the G7: The next debt crisis is in the making. We can make the difference!

On May 27th through 29th 2015 the G7 Finance Ministers shall meet for their annual summit in downtown Dresden/Germany. The global economic justice movement has good reasons to make its voices heard around the meeting:

The next sovereign debt crisis is in the making. Due to the low-interest policies through which the rich countries try to stimulate their economies huge amounts of cheap loans are presently flowing into the global south. Lenders are so keen to find lucrative investments that questions are rarely asked, if high returns are promised. This is exactly the set-up, which led to the “third world debt crisis” of the 1980s and 1990s. This crisis lasted until 2005 with countries bleeding resources through harsh austerity policies, before more than US-$ 120bn had to be cancelled, largely at the expense of taxpayers in the global North.

Fair solutions are possible, but the G7 are part of the problem. Despite the traumatic experiences of the debt crises in the global south and in the European periphery since 2010, the G7 decided to protect the interests of investors rather than allowing for a timely and fair crisis resolution. In September 2014, however, the majority of developing and emerging countries in the United Nations have decided that the UN shall create a legal framework for sovereign debt workout, giving due regard to the experiences with protracted crisis in the past years. The majority of the G7, however, have not been supportive. While Italy and France have abstained, the US, Canada, Britain, Japan and the German G7 hosts have voted “no” and tried to obstruct progress ever since.

Wake them up: Come to Dresden! Progress on the debt crisis in the 1990s was accomplished when people from North and South gathered along (then) G8 summits in Birmingham, Cologne and Genova in 1998-2001. Let us not wait until the “new” crisis has driven more and more people into misery! The process, which the poor countries have started in the United Nations provides a unique opportunity to establish a crisis resolution mechanism before people are starving over their countries external debt. In the tradition of the human chains in Birmingham 1998 and Cologne 1999 we shall make the people’s voices heard in the streets of downtown Dresden – right around the Ministers’ venue.

What we demand: G7, stop obstructing the UN process towards a sovereign insolvency framework. Support the creation of a fair, impartial and comprehensive mechanism that allows countries to exit from sovereign over-indebtedness.

Sign the petition to the G7 finance ministers!

Dear G7 Finance Ministers,

in many countries of the Global South we see the build up of new sovereign debt crises, which look very similar to the so called “Third World Debt Crisis” of the 1980s. That crisis was resolved far too late and only half-heartedly through piecemeal debt cancellations, which cost millions of lives.

We do not accept that this same catastrophe happens again under our eyes – while our leaders close theirs to reality. We call upon you to finally live up to your responsibility: Support the initiative, triggered by the G77 and China in the UN General Assembly to create an orderly sovereign debt workout mechanism!

Yours faithfully

Jubilee Germany will hand over your signature to the G7 finance ministers in Dresden during their meeting from 27 to 29 May. Your transmitted personal details will not be published online or used for any other purpose.

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