PASOK looks to regroup on economy
PASOK attempted to get its economic policy back on track yesterday after the leader of the main opposition Socialist party, George Papandreou, sacked his coordinator for economic matters after he suggested it should be made simpler for workers to be fired. Papandreou removed Giorgos Floridis from his position as economic policy coordinator late on Thursday after the MP for Athens said that Greece should adopt the «Scandinavian model» on job sackings, whereby it is easier for businesses to hire and fire people. However, unemployment benefits are far more substantial in Scandinavian countries than Greece. Papandreou moved swiftly to demote Floridis as his comments left PASOK open to accusations that it intends to reduce workers’ rights if it gets into power. The MP’s statement was open to «different interpretations» according to PASOK spokesman Nikos Athanassakis, who said the views expressed by Floridis were his own and were not in line with the party’s policy. New Democracy seized on the comment. «Mr Floridis revealed PASOK’s secret program for the economy: sackings and higher taxes,» said Economy and Finance Minister Giorgos Alogoskoufis. «The Scandinavian model of free sackings and high taxation… cannot be transferred to Greece,» the minister added. The Socialists have been critical of the government’s labor reforms, arguing that they are eroding workers’ rights and giving too much power to employers. PASOK has also attacked the social security reforms the government has embarked on. Floridis’s comment, therefore, has given Prime Minister Costas Karamanlis plenty of ammunition to fire back at Papandreou in an upcoming parliamentary debate on the economy. PASOK MPs felt their leader had no choice but to demote Floridis. «The way in which Mr Floridis interpreted the policy of support for workers veered excessively from PASOK’s policy framework,» said veteran Socialist MP Akis Tsochadzopoulos. This development puts more pressure on Papandreou, who has been criticized for not coming up with a clear and coherent economic policy. In a letter to the PASOK leader yesterday, Floridis accepted his demotion but urged Papandreou to be bolder. «PASOK must not stop its effort to adopt modern positions on how it can achieve employment and insurance for workers and the unemployed,» said Floridis. «PASOK must not be afraid of confronting the future.»
