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Showing posts with label Greeks. Show all posts
Showing posts with label Greeks. Show all posts

Wednesday, June 29, 2011

A Lose-Lose for Greeks Facing Austerity Measures (Time.com)

As the antiausterity demonstration in Athens on Tuesday, June 28, devolved into familiar violent, tear-gas-soaked clashes between fringe anarchists and police outside Parliament, Giorgos Rallis shut off his television and stewed quietly about the immense dilemma facing his country.

On Wednesday, Greek lawmakers are due to vote on an unpopular austerity bill that includes more tax hikes and a controversial plan to privatize state-owned enterprises, including the Public Power Corporation (PPC), where Rallis has worked as a technician for 19 years. European leaders and the International Monetary Fund have already lent Greece €110 billion ($150 billion) and say that unless the government passes the austerity bill, they won't hand over the latest installment of bailout loans, totaling €12 billion ($17 billion). That would leave the country, which runs out of cash in July, to default on its massive sovereign debt. But many Greeks say the year of austerity they have already suffered in exchange for the previous bailout loans has impoverished Greeks and done nothing to help the country pay back its debt. (See photos of the protests in Greece.)

"The world has cornered us, and our own politicians have cornered us," says Rallis, 46, who escaped to the island of Evia, some 40 miles (65 km) away from Athens, to avoid the two-day general strike that shut down much of the country's public transportation, public services and businesses. "The populists in Europe ridicule us as a bunch of lazy people and tell us to sell the Acropolis. I am tired of this country being the easy target. Let Greece go bankrupt. Let all of Europe go bankrupt. I want them to stop bleeding me for money I just don't have."

Rallis is just one member of the quiet but angry majority that has Greek lawmakers nervous, even as world headlines are dominated by the dramatic images of young self-styled anarchists and far-left militants, many donning gas masks and crash helmets, fighting with police and one another. During Tuesday's protests, police fired several rounds of tear gas to disperse rioters and the rest of the crowd. At least 46 people - 37 police officers and nine protesters - were injured on Tuesday, according to Greek authorities. By late evening, the tear gas was still thick in the air around Syntagma, the square across the street from parliament. Fires set by rioters burned in many garbage bins, and bits of marble hacked off from storefronts littered the streets. The protesters who had camped out at Syntagma for weeks strummed guitars and sang songs as angry kids spray-painted revolutionary slogans on the facades of fancy hotels and riot police patrolled the square. More drama was unfolding inside Parliament, as Prime Minister George Papandreou and his new Finance Minister, Evangelos Venizelos, tried to keep Socialist lawmakers from defecting before the crucial vote. At least four deputies from the Socialist PASOK Party have said publicly that they may vote against the new austerity bill. If one more lawmaker votes against it, the bill fails.

Though opposition parties have been largely united against the new austerity measures, Elsa Papadimitrou, a deputy from the main opposition, the center-right New Democracy Party, said she was mulling a vote for the austerity package "to put the good of the nation above party interests," according to the Greek daily Kathimerini.

Meanwhile, the political maelstrom continues to worry leaders in Brussels. Some have discussed alternative options for Greece in case the austerity bill fails in Parliament. But the E.U.'s economic chief, Olli Rehn, shut down that talk. "There is no Plan B to avoid default," he said Tuesday. "The European Union continues to be ready to support Greece. But Europe can only help Greece if Greece helps itself."

Rehn added that Greek political leaders should be "fully aware of the responsibility that lies on their shoulders." But those same politicians also are facing historic levels of distrust from the Greek public, who view the country's political system as hopelessly corrupt and broken.

Papandreou's government - which has borne the brunt of the antiausterity backlash - is fragile, even after a Cabinet reshuffle last week that was meant to rally Socialist deputies who had lost faith in his Ministers. The reshuffle brought on board new Finance Minister Venizelos, a steely constitutional-law scholar who has a strong following in PASOK, but analysts say the move may only buy the party a little more time. (See why Greeks living in urban areas are going back to their ancestral villages.)

Pollsters and analysts predict that if the vote fails on Wednesday, the government will collapse quickly. But even if the new austerity bill passes, snap elections look increasingly likely. And even if there are new elections, it's unclear just who would lead the country, since polls show that Greeks also have little faith in the New Democracy Party and its leader, Antonis Samaras.

According to Christoforos Vernardakis, the president of leading polling agency VPRC and a political-science professor at the Aristotle University of Thessaloniki, the economic crisis is bringing to light a long-simmering political crisis in Greece. Since the mid-1990s, when political scandals became commonplace, "more and more people have suspected their politicians are involved in a network of unlawful and corrupt practices," Vernardakis says. "Now people are demanding from their representatives ethics, more efficiency in dealing with problems and a vision for the future. I doubt that these politicians of today can fulfill these demands."

But the prospect of bankruptcy, laden with political chaos, unnerves many Greeks, including Kostas Ifantis, a political-science professor at the University of Athens. He and others fear that the political polarization in Greece today could foment social unrest that in turn could upend the country and even the euro zone. "I hope cooler heads prevail and people sit down and work out what's best for all of us," Ifantis says. "This is not the time for posturing. When you stare at the abyss, you find your consciousness. That's my only hope."

But Giorgos Rallis says he lost hope a long time ago. His wages have been cut; his tax bill has gone up. He worries that he won't be able to pay his rent and support his wife and two young sons if he has to pay for more austerity measures. And he also worries that he will lose his job if the power company PPC is partially privatized.

"I am personalizing this, but why shouldn't I?" he says. "I feel austerity every single day. I see people losing their jobs and homes, eating at soup kitchens, losing their pride. Let the country go broke. I've already gone broke."

- With reporting by Leo Cendrowicz / Brussels and Nikolas Leontopoulos / Athens

See "Uprisings in Greece: Europe's Own Arab Spring?"

See how the drama in Greece could threaten the euro.

View this article on Time.com

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Wednesday, June 15, 2011

Greeks strike, clash with police over austerity (Reuters)

ATHENS (Reuters) – Stone-throwing Greeks clashed with police and tens of thousands of protesters marched on parliament on Wednesday to oppose government efforts to pass new austerity measures for the debt-stricken euro zone state.

Unions representing half the five-million-strong workforce also launched a nationwide strike, shutting ports, schools and other basic services in the Mediterranean state.

Prime Minister George Papandreou must push through a new five-year campaign of tax hikes, spending cuts and sell-offs of state property to continue receiving aid from the European Union and International Monetary Fund and avoid default.

He not only faces public protests and resistance from a conservative opposition that has surpassed his Socialist party in opinion polls, but a few backbenchers in his own parliamentary grouping are also threatening to reject the plan.

Political analysts said he would be able to push through the package with support from his PASOK party and possibly a handful of opposition deputies, but that protests had introduced some uncertainty. One PASOK deputy defected on Tuesday, reducing the party's number of seats in parliament to 155 out of 300.

Thousands of activists and unionists converged on the central Syntagma square on the parliament's front steps to try to stop lawmakers from entering to debate the bill they hope to pass by the end of the month.

"Thieves, traitors!" many chanted. "Where did the money go?"

"These measures are not taking us anywhere. They only lead to unemployment, hunger and poverty," said Panayotis Dounis a 60-year-old pensioner. "We wouldn't be here if the politicians had made sacrifices as well. We are absolutely disappointed."

About 1,500 police closed a large part of the city center and erected two-meter metal barricades in front of the assembly, creating a corridor to hold back protesters as lawmakers drove up to the building in official limousines.

Riot police fired several rounds of tear gas at dozens of masked youths who pelted them with rocks and a few petrol bombs. Several activists also hurled oranges at Papandreou's car as he drove past, a police official said.

Several groups in the protest clashed between themselves. Police said one person was injured and they detained 40 people.

"CRUEL AS A TIGER"

The new austerity package foresees 6.5 billion euros ($9.4 billion) in tax hikes and spending cuts this year, doubling measures agreed with bailout lenders that have pushed unemployment to a record 16.2 percent and extended a deep recession into its third year.

The plan includes: new luxury taxes; a crackdown on tax evasion; tax hikes on soft-drinks, swimming pools, restaurant bills and real estate; and cutting the Mediterranean state's 750,000-strong public work force by a fifth.

With those and other measures worth total savings of 28 billion euros through 2015, it also aims to raise 50 billion euros by selling off state-owned firms.

Papandreou appealed for national consensus on the laws, on which hang the EU and IMF release of a further 12 billion euros in aid next month that Athens needs to pay off maturing debt or face default.

"We are at a historically crucial moment ... and I believe that national consensus is important for the country's interest," Papandreou told President Karolos Papoulias during a meeting. "We will proceed with the responsibility for the necessary decisions to see the country exit the crisis."

Papandreou was planning to talk to party leaders later on Wednesday and then make a statement, a government official said.

On Tuesday, euro zone finance ministers failed to reach agreement on how private holders of Greek debt should share the cost of a new bailout for Athens worth an estimated 120 billion euros before a June 23-24 summit.

The European Central Bank opposes such a move, saying that if such participation is involuntary it could be deemed default that could shock markets and put weaker euro states at risk.

The lack of agreement pushed the cost of insuring Greek debt against default to a new record high on Wednesday, while shares in Greek banks fell 7 percent on fears of political uncertainty.

The PASOK deputy who defected said he could not back the package. "You have to be as cruel as a tiger to vote for these measures. I am not," George Lianis said in a letter to Parliament Speaker Filippos Petsalnikos on Tuesday.

Another PASOK member said he would vote against it. But analysts said the party, which still holds a majority, would pass the package by the end of the month before working on another set of laws on how to implement it.

"My gut feeling is that at the end of the day they will get enough MPs... I'd say there is a 70 percent chance that it will go through," said Diego Iscaro, IHS Global Insight.

"The other option (voting it down) would be quite destabilizing. That will drive MPs to vote for it."

The cabinet is also expected to survive the turmoil in the short term. A poll on Sunday showed 62 percent of Greeks expect the government to call early elections before its term ends in 2013, although 59 percent thought they did not need a vote now.

(Additional reporting by Yannis Behrakis, Ingrid Melander, Harry Papachristou and Yiorgos Karahalis; Writing by Michael Winfrey; editing by Mark Heinrich and Elizabeth Piper)


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Sunday, June 12, 2011

Greeks protest for 19th day, utility union to strike (Reuters)

ATHENS (Reuters) – More than 20,000 Greeks protested against austerity measures in Athens on Sunday and workers at state-owned utility PPC announced strikes to oppose government plans to sell the company.

In the 19th straight day of demonstrations against a new austerity campaign the Socialist government hopes to pass this month, protesters gathered in front of parliament in Athens' central Syntagma square, shouting "Thieves! Thieves! Thieves!"

Having failed to meet fiscal targets under Greece's 110 billion euro ($160 billion) bailout by the European Union and International Monetary Fund, the government wants to raise taxes and slash spending more than planned this year in a bid to avoid default.

It has slated more measures through 2015 to cut the fiscal deficit to 1.1 percent in 2015 from 10.5 percent of gross domestic product last year, including a plan to sell state assets worth 50 billion euros.

A central part of the sell-offs is state energy producer PPC. But labor unions, opposition parties and some backbenchers of Prime Minister George Papandreou's ruling PASOK party oppose selling some Greek state-owned firms.

"We are against the sell-off of the country. We will not close our eyes," the GENOP DEH union of PPC workers said in a news release late on Saturday. "The union has decided to start 48-hour strikes from Monday June 20."

The mid-term austerity plan includes an extra 6.4 billion euros of cuts for this year, almost doubling originally agreed steps that have added to a 5.5 percent economic contraction in the first quarter and driven unemployment over 16 percent.

It has sparked daily protests and caused Papandreou's party to fall behind the conservative opposition in opinion polls. The government aims to begin discussion of the plan this week in parliamentary committees and approve it by the end of June.

Demonstrators have become frustrated with what they say are corrupt politicians who refuse to crack down on wealthy tax-evaders and instead try to solve debt problems by taxing less well-off Greeks.

On Sunday, they jeered at the parliament building and waved banners that read: "We won't leave if they don't leave," and "We don't owe anything, we won't pay anything."

Unions representing hundreds of thousands of workers in the public and private sectors are planning a nationwide strike on Wednesday, June 15.

(Reporting by Lefteris Papadimas; Writing by Michael Winfrey; Editing by Louise Ireland)


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Friday, June 10, 2011

Greeks get details of painful austerity drive (AP)

ATHENS, Greece – Greece's finance minister is to outline details of a new round of painful austerity measures, a day after the country's Cabinet approved the plans and submitted them to Parliament.

Greece has been slipping on reform targets of its euro110 billion ($160.75 billion) international bailout, and the new austerity drive is essential for the debt-ridden country to continue receiving rescue loans.

Plans to be detailed Friday include tax hikes and spending cuts, including extra income, fuel, property and car taxes. Civil servants and pensioners will suffer more income cuts, while health, education, defense and social spending will be further curtailed.

They include euro6.4 billion in remedial austerity this year, a euro22 billion package for 2012-2015 and a euro50 billion privatization program.


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