News posted by www.newsinfoline.com
Thousands of Greek public sector workers marched through Athens on Tuesday to protest tough new austerity measures in the first big test of government resolve to implement deep budget cuts to win billions of euros in aid.The government submitted its three-year austerity bill to parliament, where it enjoys a comfortable majority. The plan calls for spending cutbacks and tax rises totalling 30 billion euros and was expected to come up for a vote on Thursday.Some 4,000 protesters, including teachers, garbage collectors, pensioners, construction workers and civil servants, demonstrated in front of parliament, chanting "Never! We will never pay for the EU and IMF", referring to the European Union and International Monetary Fund, providers of the bailout money.Protesters held up banners reading "Let's take to the streets" and "Tax the rich".Their numbers were well below the tens of thousands that joined protests earlier this year against austerity plans. But unions promised bigger crowds on Wednesday, when private sector workers will join the 48-hour public sector walkout."We've lost everything overnight," said Chryssa Hardella, a 56-year old teacher. "I'm begging them not to take my earnings. I've worked 30 years for this money."A fellow teacher carried a crucifix with the image of an owl on it to symbolise the death of education in Greece. Ilias Iliopoulos, general secretary of the main public sector union ADEDY, said more strikes would be held later in the month.Government ministries, tax offices, schools, hospitals and public services were shut down for the rally. Transport in major cities will be shut down and flights grounded on Wednesday when the private sector joins in the third joint walkout since the start of the year, when worries about Greece's high debt and deficit turned the country into a target of financial markets.So far, the turnout has paled in comparison to the riots that paralysed Athens in December 2008 following the police killing of a teenager.But anger is growing after Prime Minister George Papandreou's socialist government unveiled draconian new budget cutting plans on Sunday that include deep cuts in public sector wages and pensions.In exchange, Athens is to receive 110 billion euros ($146.5 billion) in support over three years from the European Union and International Monetary Fund. The package aims to calm fears of a default and buy the country time to overhaul an economy that is uncompetitive and plagued by corruption.SOCIAL COHESION IMPORTANTMarkets have reacted sceptically so far. The euro fell below $1.31 to a one-year low against the dollar on Tuesday while the spreads between Greek bond yields and benchmark German Bunds shot back above 600 basis points.Greek bank stocks plunged 7 percent in thin trading after a 1 percent fall on Monday."Whether Greece can actually adjust, whether their social cohesion will remain -- that's the key thing to watch," Tom Byrne of Moody's Investors Service told Reuters.A Kappa Research poll that appeared in daily newspaper To Vima on Tuesday showed nearly one in three Greeks expect the crisis to last for 10 years or more."We are in a difficult position," Labour Minister Andreas Loverdos said at a presentation of the government's pension reform plans. "I want to assure you that regardless of the reactions or harsh accusations, our aim is to save Greece and we will stick to it."Greek newspaper editorials are warning the government not to make average workers and pensioners pay the price for sins of venal officials and tax evaders who are seen by many as the main culprits in Greece's dire financial state.The government plans foresee a public sector pay freeze through 2013 and big cuts in treasured holiday bonuses and allowances that account for a substantial portion of civil servant incomes.In the private sector, the government wants to loosen rules which prevent companies from firing more than 2 percent of their workforces in a single month.The government announced on Tuesday it had hired Lazard to provide it with financial advice, but denied that the investment bank would work on sovereign debt restructurings in Greece as it did for Argentina and other countries."Any form of debt restructuring is out of the question," Greek Finance Minister George Papaconstantinou told Reuters after news of the Lazard hire. "No one has been hired to advise us in this regard."A restructuring or rescheduling would be an embarrassment for the government and could haunt sentiment toward its debt for years. But some economists believe a restructuring would give Athens the best shot at repairing its broken finances.
News posted by www.newsinfoline.com
Click here to read more news from www.newsinfoline.com
Please follow our blogs
newsinfolinephotogallery
prabugallery
newsinfolinephotogallery1
photogallery1
No comments:
Post a Comment