Sunday October 26, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece approves scheme to fire thousands of public workers

By Renee Maltezou & George Georgiopoulos

Greece's shaky coalition government scraped through a vote on Wednesday on a bill to sack public sector workers as thousands chanting anti-austerity slogans protested outside parliament.

The vote was the first major test for Prime Minister Antonis Samaras's two-party coalition since losing an ally over the abrupt shutdown of the state broadcaster last month, which left it with a scant five-seat majority in the 300-seat parliament.

After midnight on Wednesday, 153 lawmakers out of the 293 present voted in favor of the bill, whose passage was required to unlock nearly 7 billion euros ($9.2 billion) in aid from European Union and International Monetary Fund lenders.

The bill includes deeply divisive plans for a transfer and layoff scheme for 25,000 public workers - mainly teachers and municipal police - that had triggered a week of almost daily marches, rallies and strikes in protest.

About 5,000 Greeks flooded the street outside parliament as the vote neared, with some chanting: "We will not succumb, the only option is to resist" and holding aloft black balloons - though turnout was much smaller than in protests last year.

"After 12 years on the job, they fire us in one night," Patra Hatziharalampous, a 52-year-old school guard in uniform said between sobs. "If they have any guts, they should say no to the bailout and take some of the bill's articles back."

The reforms were passed hours before German Finance Minister Wolfgang Schaeuble - Europe's leading proponent of austerity blamed by many Greeks for their woes - arrives in Athens for his first visit to Greece since the debt crisis began in 2009.

Before the vote, Samaras announced Greece's first tax cut since its crisis began nearly four years ago, in a bid to placate protests and an increasingly restive public mood.

"We will not relax," Samaras said in a surprise television address to announce that value-added tax (VAT) in restaurants would be cut to 13 percent from 23 percent starting August 1.

"We will continue climbing up the hill, we will reach the top, which is not far, and better days will come for our people."

In a clip that became an instant hit on social media site Twitter, television stations accidentally showed Samaras fumbling at an initial attempt to read the statement and swearing "Damn my head, ******" as he walked off the podium.

'Drawing blood'

The government had made a show of arguing for the restaurant VAT cut during its latest talks with lenders, and analysts said the move was a symbolic attempt to show austerity-hit Greeks that there was light at the end of the tunnel.

Samaras said the cut would help curb tax evasion, a major problem in the country and one of the reasons it slid into a debt crisis in 2009, but warned that if evasion persisted VAT would revert to 23 percent.

"The crucial thing is that it was announced now and not after the summer," said Thomas Gerakis, head of Marc Pollsters. "How it will benefit consumers remains to be seen."

Athens has been limping along on two bailouts worth over 240 billion euros ($315 billion) since 2010, which it has secured at the price of wage cuts and tax rises that have triggered a six-year recession and sent unemployment to 27 percent.

The latest bill agreed with lenders includes a luxury tax on houses with swimming pools and owners of high performance cars.

But the move that has drawn the most anger is the plan to place 25,000 workers into the layoff scheme by the end of 2013, giving them eight months to find another position or get laid off. Greece's public sector is widely seen as oversized, inefficient and filled with patronage hires, but many Greeks believe society can no longer go tolerate cuts or tax hikes.

Uniformed municipal police, garbage collectors in orange vests and hundreds of other public sector workers have taken to the streets of Athens almost daily on motorbikes in over a week of protests, blowing whistles, honking horns and blaring sirens. [Reuters]

ekathimerini.com , Thursday Jul 18, 2013 (01:43)  
Samaras pledges action after flash floods in Athens
No court hearings for civil cases
Greeces lenders seem adamant that govt must act on bailout commitments
Future of Attica trash set to become clearer
Nicosia says reforms are bringing results
Economic reforms in Cyprus are starting to yield results, the government said on Saturday after one credit-rating agency upgraded its rating and a second its outlook for the bailed-out count...
TAIPED waits for green light from Eurostat
Eurostat has frozen the securitization of properties that the Hellenic Republic Asset Development Fund (TAIPED) had been planning. The project, drafted to bring some 400 million euros into t...
Inside Business
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greeces lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Samaras pledges action after flash floods in Athens
4. Greeces lenders seem adamant that govt must act on bailout commitments
5. Nicosia says reforms are bringing results
6. No court hearings for civil cases
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greeces closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.