AS events in Greece continue to unfold this week, Green MEP for the South West Molly Scott Cato, who sits on the European Parliament's Economics Committee, has attacked the Eurozone over its handling of the ongoing debt crisis.

Dr Scott Cato, who lives in Stroud, blamed the Eurozone’s “odious neoliberal ideology” that she said was undermining democracy and punishing the Greek people.

The economics professor voiced her support for the Syriza government, saying she applauded the decision of the Greek people to vote for “a positive alternative to austerity.”

Her comments came as Greece missed the deadline for a €1.5bn (£1.1bn) loan repayment to the International Monetary Fund (IMF) on Tuesday.

The default made Greece the first country in the European Union to fail to repay a loan to the IMF – leaving it on the brisk of financial collapse and stoking fears that it could abandon the euro.

Dr Scott Cato said: “"People in Greece are suffering because they are the victims of financial markets and not the authors of their own fate.

“I am appalled at the suggestion that pensioners should see their incomes cut and the poor should face paying more for energy just so that distant creditors can benefit.

The radical-left Syriza party in Greece gained power five months ago on a platform of ending austerity, and has been trying to come to an agreement with its international creditors on bailout terms.

“In the months since the Greek election the negotiations have made clear that the Eurozone is actually a neoliberal disciplining device,” she continued.

“We are all suffering attacks on our democratic and social rights because of neoliberal ideology but Greece is the most extreme example. We need to stand in solidarity and resist the attacks on these rights which we have taken for granted for 70 years.

“Greece cannot pay its debts and a restructuring and debt forgiveness, based on the legal principle that recognises some of the debt as 'odious', is urgently needed.

“What happens in Greece is of vital importance to Europe and the world because democracy is being tested. If the EU challenges the democratic will of the people in order to allow the greed, wealth and power of financiers and corporations to prevail this represents a serious threat to the very principle of democracy.”

The Ecologist Green Party in Greece is part of the Syriza coalition government that has promised a referendum on Sunday asking Greek citizens if they will or will not support further austerity proposals.

Dr Scott Cato is pushing for the solutions proposed by the Greens in Europe which include a special debt conference to agree debt cancellation for Greece and a 'Green Recovery plan'.

She added: "Austerity has enforced terrible human suffering in Greece. Rather than adding further chapters to this Greek tragedy, The EU could and should be helping to unlock the huge potential Greece has for economic recovery by supporting investment in sustainable sectors of the economy.

“With the right investment, Greece could become the EU's largest exporter of green energy, helping other countries meet their EU renewables targets while simultaneously helping the Greek economy to recover."

Greek Prime Minister Alexis Tsipras has called a referendum on Sunday to ask the Greek people whether they want to accept the terms that come as conditions for an extension of much-needed bailout funds.