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Greece's coalition split over demands for job cuts as unemployment rises | Greece's coalition split over demands for job cuts as unemployment rises |
(8 days later) | |
The crisis engulfing Greece has deepened after two of the governing coalition parties resisted demands from Brussels for 50,000 public sector job cuts, and unions called a general strike for this month. | The crisis engulfing Greece has deepened after two of the governing coalition parties resisted demands from Brussels for 50,000 public sector job cuts, and unions called a general strike for this month. |
The left-of-centre Pasok and Democratic Left parties vowed to prevent the government from capitulating to demands for jobs cuts after figures revealed a jump in the unemployment rate to almost 24%. | The left-of-centre Pasok and Democratic Left parties vowed to prevent the government from capitulating to demands for jobs cuts after figures revealed a jump in the unemployment rate to almost 24%. |
Tensions rose inside the prime minister's official residence, the Maximos Mansion, during a meeting of the three party leaders that make up Greece's new government. Under pressure from Brussels, right-of-centre prime minister Antonis Samaras has promised to find an extra €11.5bn (£9.2bn) in public spending cuts and tax rises over the next two years, and is under pressure to fire large numbers of workers as part of the plan. | Tensions rose inside the prime minister's official residence, the Maximos Mansion, during a meeting of the three party leaders that make up Greece's new government. Under pressure from Brussels, right-of-centre prime minister Antonis Samaras has promised to find an extra €11.5bn (£9.2bn) in public spending cuts and tax rises over the next two years, and is under pressure to fire large numbers of workers as part of the plan. |
Democratic Left leader Fotis Kouvelis, who has already voiced his objections to the plan, was joined in opposition at the crunch meetings by Pasok leader Evangelos Venizelos, who said: "For us there is no question of layoffs of civil servants." | Democratic Left leader Fotis Kouvelis, who has already voiced his objections to the plan, was joined in opposition at the crunch meetings by Pasok leader Evangelos Venizelos, who said: "For us there is no question of layoffs of civil servants." |
Venizelos, who is also under pressure to agree a six-day working week as part of the proposals, said Greeks must continue to enjoy the labour rights enjoyed by other Europeans. | Venizelos, who is also under pressure to agree a six-day working week as part of the proposals, said Greeks must continue to enjoy the labour rights enjoyed by other Europeans. |
"There can be no further change in labour relations beyond the European framework. Whatever is valid in the rest of Europe must also be valid in Greece. We are a member state of the European Union, not just the eurozone." | "There can be no further change in labour relations beyond the European framework. Whatever is valid in the rest of Europe must also be valid in Greece. We are a member state of the European Union, not just the eurozone." |
Echoing widespread concerns that cuts will drive Greece further into recession, he insisted that the financial realignment deadline of 2013-14 must be extended another two years to 2015-16: "Just as I said … after my discussion with the troika, the extension of the fiscal adjustment period to four years is a foregone conclusion. The discussion with the troika was also based on this case." | Echoing widespread concerns that cuts will drive Greece further into recession, he insisted that the financial realignment deadline of 2013-14 must be extended another two years to 2015-16: "Just as I said … after my discussion with the troika, the extension of the fiscal adjustment period to four years is a foregone conclusion. The discussion with the troika was also based on this case." |
The troika is made up of officials from Brussels, the European Central Bank in Frankfurt and the Washington-based International Monetary Fund, whose inspectors are concluding a review that will determine whether Greece gets further aid. | The troika is made up of officials from Brussels, the European Central Bank in Frankfurt and the Washington-based International Monetary Fund, whose inspectors are concluding a review that will determine whether Greece gets further aid. |
A spokesman said the government would resist proposals for further wage cuts and was making "every effort to not touch labour relations". Simos Kedikoglou said a pay reduction of 6% for police and military personnel, which is among the proposals in a package of austerity measures, must be overturned. "We have already lowered labour costs, and there is no reason for such issues to be raised by the troika", Kedikoglou said. | A spokesman said the government would resist proposals for further wage cuts and was making "every effort to not touch labour relations". Simos Kedikoglou said a pay reduction of 6% for police and military personnel, which is among the proposals in a package of austerity measures, must be overturned. "We have already lowered labour costs, and there is no reason for such issues to be raised by the troika", Kedikoglou said. |
Unions called for a 24-hour stoppage on 24 September as the jobless rate hit 23.6%, leaving 1.17m people out of work. | Unions called for a 24-hour stoppage on 24 September as the jobless rate hit 23.6%, leaving 1.17m people out of work. |
Although no final agreement was reached between the coalition parties, Venizelos said there had been an "improvement" in the discussions and that an end was in sight. | Although no final agreement was reached between the coalition parties, Venizelos said there had been an "improvement" in the discussions and that an end was in sight. |
French finance minister Pierre Moscovici, in Greece for talks with Samaras said: "The essential thing is that the commitments made by Greece are met and that an agreement is reached with the troika." | French finance minister Pierre Moscovici, in Greece for talks with Samaras said: "The essential thing is that the commitments made by Greece are met and that an agreement is reached with the troika." |
Analysts said Moscovici showed no sign of being willing to back Greek requests for an extension of its latest bailout package, saying that it was vital that the conservative-led government in Athens maintained "determination" in pursuing reform goals. | Analysts said Moscovici showed no sign of being willing to back Greek requests for an extension of its latest bailout package, saying that it was vital that the conservative-led government in Athens maintained "determination" in pursuing reform goals. |
"We hope that this determination is unwavering," he said. | "We hope that this determination is unwavering," he said. |
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