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Greek MPs back public sector cuts amid protests | Greek MPs back public sector cuts amid protests |
(35 minutes later) | |
The parliament in Greece has narrowly approved a public sector reform bill that will see thousands of people lose their jobs. | The parliament in Greece has narrowly approved a public sector reform bill that will see thousands of people lose their jobs. |
In a 153-140 vote, MPs backed the bill tied to the country's fresh 6.8bn euros (£5.8bn) of bailout loans, needed to keep Greece afloat. | In a 153-140 vote, MPs backed the bill tied to the country's fresh 6.8bn euros (£5.8bn) of bailout loans, needed to keep Greece afloat. |
During the debate thousands of protesters rallied outside the parliament in the capital Athens. | During the debate thousands of protesters rallied outside the parliament in the capital Athens. |
Greece has recently been hit by a series of strikes against the cuts. | Greece has recently been hit by a series of strikes against the cuts. |
The government led by conservative Prime Minister Antonis Samaras says it has no choice but to enforce further painful adjustment. | |
'Unsustainable' debt | 'Unsustainable' debt |
Under the bill, more than 4,000 state employees, including teachers and local government workers, face dismissal this year. | Under the bill, more than 4,000 state employees, including teachers and local government workers, face dismissal this year. |
In addition, 25,000 will be put into a "mobility pool" by the end of the year. | In addition, 25,000 will be put into a "mobility pool" by the end of the year. |
The employees will have an eight-month period on 75% of their salaries in which to seek redeployment, by which point, if they are not transferred to another department, they will face redundancy. | The employees will have an eight-month period on 75% of their salaries in which to seek redeployment, by which point, if they are not transferred to another department, they will face redundancy. |
Many Greeks believe that once in the pool they will inevitably become jobless. | |
It is thought up to 11,000 could lose their jobs by the end of 2014, to comply with the demands of the troika - the European Union, European Central Bank and International Monetary Fund. | It is thought up to 11,000 could lose their jobs by the end of 2014, to comply with the demands of the troika - the European Union, European Central Bank and International Monetary Fund. |
Previous austerity measures have led to cuts to salaries and pensions in the public sector. | Previous austerity measures have led to cuts to salaries and pensions in the public sector. |
The trouble is that despite all the measures that have been taken, Greece's debt is still regarded as unsustainably high, the BBC's Chris Morris in Athens reports. | The trouble is that despite all the measures that have been taken, Greece's debt is still regarded as unsustainably high, the BBC's Chris Morris in Athens reports. |
He says that sooner or later a new debate will have to begin, about writing off another chunk of the debt. And that could mean that other countries in the eurozone - who have lent huge amounts to Greece - will not get all their money back. | He says that sooner or later a new debate will have to begin, about writing off another chunk of the debt. And that could mean that other countries in the eurozone - who have lent huge amounts to Greece - will not get all their money back. |
Tax evasion | |
Greece has an unemployment rate of 27%. Public unrest has led to political instability and four different governments in as many years. | |
The country has been dependent on loans from the European Union, the International Monetary Fund and the European Central Bank, since May 2010. | |
On Tuesday, MPs voted in favour of prosecuting former Finance Minister George Papaconstantinou over allegations that he tampered with a list of 2,000 suspected tax evaders. Mr Papaconstantinou has denied any wrongdoing. | |
Correspondents say tax evasion is a major problem in Greece and one of the main reasons for its financial crisis. |