International Pressure Force Greece To Cut 15,000 Public-Sector Jobs
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Greece’s coalition government has agreed to a reform program demanded by their creditors to cut 15,000 public-sector jobs by the end of the year, said a government official on Monday, as international pressure continues to mount on the country to implement austerity measures.
The announcement marked the first significant shift in Greek policy, with state jobs having previously been protected by the government during the country’s acute financial crisis, which started nearly two years ago.
Greece’s coalition government has agreed to a reform program demanded by their creditors to cut 15,000 public-sector jobs by the end of the year, said a government official on Monday, as international pressure continues to mount on the country to implement austerity measures.
The announcement marked the first significant shift in Greek policy, with state jobs having previously been protected by the government during the country’s acute financial crisis, which started nearly two years ago.
But with time running out till the Greeks face a 14.4 billion euro ($18.9 billion) bond redemption next month, the country had little alternative but to enact the stricter austerity measures demanded by its troika of lenders – the European Commission, the International Monetary Fund and the European Central Bank.
Both French President Nicolas Sarkozy and German Chancellor Angela Merkel warned Greece earlier in the day that they were unlikely to release the 130 billion euro ($171 billion) loan promised to the country.
[quote]”We are saying to our Greek friends that they must decide now,” said Sarkozy, as quoted by the Wall Street Journal. “Funds won’t be disbursed if these decisions aren’t taken,” he cautioned.[/quote]Related: Germany Will Make An Example Of Greece: George Friedman
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Among these decisions had been the public-sector cuts, as well as new cutbacks in government spending and steep cuts in supplemental pensions paid to retirees. According to government officials, the Greek coalition are also nearing a deal that would reduce supplementary pension benefits by about 20 percent.
Consequently, the country’s two main unions called a 24-hour general strike for Tuesday to protest against the new measures.
“It is a pretence that the measures are taken to forestall bankruptcy,” said Communist party leader Aleka Papariga during a gathering of trade union leaders, as cited by the Associated Press.
[quote]”On the contrary, they will lead the people to misery to benefit the plutocracy and capital,” she said.[/quote]Yiannis Panagopoulos, leader of the GSEE private-sector union, also described the measures as a death sentence for the country, with public sentiment echoing his statements as more than 5000 people protested on the streets in Athens, despite the city being hit by a torrential thunderstorm and strong winds.
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In response, Greece’s Finance Minister Evangelos Venizelos called for the country, and in particular its political parties and organisation, to put aside their differences in order to achieve some some sort of consensus for its debt.
“Instead of looking at this tragic dilemma … with national unity … there are many who spend their effort on a conventional, outdated, party confrontation as if nothing has happened,” the minister said.
