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BackThe general strike in Spain and Portugal and the numerous strikes in solidarity and demos last Wednesday have clearly shown that the people of Europe have enough. The blind austerity policy at the expense of employees has dramatic consequences for many. Last week, a comprehensive austerity package has been approved by Greece, which will have a massive impact on the social system. In Brussels, the Greek Finance Minister, Giannis Stournaras, and the Labour Minister, Giannis Vroutsis, answered questions put to them by MEPs.
“Austerity kills dignity - Reclaim Europe”
Unfurling banners with this and similar slogans, thousands of people on Wednesday took to Europe’s streets. In Spain and Portugal, trade unions called a 24-hour general strike and marched through the major cities. Lisbon’s underground remained stationary, flights had to be cancelled and only a small number of trains were running. Hospital staff only treated emergencies and most schools in Spain and Portugal remained closed. Almost hundred percent of employees working for the energy, automobile, shipbuilding and construction industry participated. Italy’s largest trade union called work stoppages lasting several hours and in Greece public sector workers took part in solidarity strikes. In Belgium and France too, employees refused to work for several hours and expressed their dissatisfaction with the European austerity policy.
Yet another Greek austerity programme
In order to receive more aid, the Greek government approved of another comprehensive austerity programme last week. Drastic cuts were decided against the fierce resistance of the opposition. From now on, employers have the right to conclude employment contracts with employees directly, which enables them to bypass collective negotiations. Apart from that, compensations for employees who already have been made redundant were significantly reduced. The wages of civil servants were cut by twenty percent and Christmas as well as holiday bonuses were cancelled. The wages of those working in public enterprises shall be adjusted to match those paid to civil servants; according to trade unions, this will result in a 30 percent loss of earning. The health service too does not escape unscathed: numerous hospitals were closed or merged. In addition, own contributions to medical drugs were drastically increased. However, pensioners will be most affected by the austerity programme. The pension sector shall make total savings of 4.8 billion Euro, and the retirement age shall rise from 65 to 67. Here too, the Christmas bonus was cancelled and pensions exceeding 1000 Euro were cut by five to fifteen percent. Hence, each pensioner will lose 2000 Euro per year, say the Greek trade unions. The population reacted with mass protests and rallies to the latest measures of the government.
The reaction of the TROIKA, consisting of European Commission, International Monetary Fund and European Central Bank was more positive. Their long awaited report on the progress of the reform programme in Greece was mainly optimistic. Eurogroup boss, Jean-Claude Junker and IMF boss, Christine Lagarde praised the cost saving efforts by the Greeks. A positive report of the TROIKA is a condition for the payment of further aid to Greece.
Question and answer session before the European Parliament
The European austerity policy, the Greek reform programme and the social situation of many Europeans was the topic in the European Parliament. Speaking before the European Parliament, both the Greek Finance Minister and the Labour Minister emphasised Greece’s achievements so far. No other democracy had achieved so much in peace times; competitiveness had increased enormously, said Finance Minister Giannis Stournaras. Giannis Vroutsis, the Greek Minister for Labour, Social Security and Welfare pointed out that his country would do everything to meet the conditions of the TROIKA. It was true that the labour market reforms and social reforms had been very hard for the population, but the Greek government had handled the implementation of the “reforms” with great sensibility. The social system had shown serious shortcomings, which now had been remedied. The pension system had also revealed inacceptable gaps, which had made it possible for pensioners to receive multiple payments they were not entitled to. Both ministers appealed to the European decision makers to approve further aid payments. Both Greek ministers stressed the necessity to restore trust and credibility in their country to attract investors. Giannis Stournaras named illegal immigrants entering Greece as another serious problem. This was the “open wound of Greece’s economy” and had to be tackled, commented the Greek Minister for Labour, Social Security and Welfare.
Unfurling banners with this and similar slogans, thousands of people on Wednesday took to Europe’s streets. In Spain and Portugal, trade unions called a 24-hour general strike and marched through the major cities. Lisbon’s underground remained stationary, flights had to be cancelled and only a small number of trains were running. Hospital staff only treated emergencies and most schools in Spain and Portugal remained closed. Almost hundred percent of employees working for the energy, automobile, shipbuilding and construction industry participated. Italy’s largest trade union called work stoppages lasting several hours and in Greece public sector workers took part in solidarity strikes. In Belgium and France too, employees refused to work for several hours and expressed their dissatisfaction with the European austerity policy.
Yet another Greek austerity programme
In order to receive more aid, the Greek government approved of another comprehensive austerity programme last week. Drastic cuts were decided against the fierce resistance of the opposition. From now on, employers have the right to conclude employment contracts with employees directly, which enables them to bypass collective negotiations. Apart from that, compensations for employees who already have been made redundant were significantly reduced. The wages of civil servants were cut by twenty percent and Christmas as well as holiday bonuses were cancelled. The wages of those working in public enterprises shall be adjusted to match those paid to civil servants; according to trade unions, this will result in a 30 percent loss of earning. The health service too does not escape unscathed: numerous hospitals were closed or merged. In addition, own contributions to medical drugs were drastically increased. However, pensioners will be most affected by the austerity programme. The pension sector shall make total savings of 4.8 billion Euro, and the retirement age shall rise from 65 to 67. Here too, the Christmas bonus was cancelled and pensions exceeding 1000 Euro were cut by five to fifteen percent. Hence, each pensioner will lose 2000 Euro per year, say the Greek trade unions. The population reacted with mass protests and rallies to the latest measures of the government.
The reaction of the TROIKA, consisting of European Commission, International Monetary Fund and European Central Bank was more positive. Their long awaited report on the progress of the reform programme in Greece was mainly optimistic. Eurogroup boss, Jean-Claude Junker and IMF boss, Christine Lagarde praised the cost saving efforts by the Greeks. A positive report of the TROIKA is a condition for the payment of further aid to Greece.
Question and answer session before the European Parliament
The European austerity policy, the Greek reform programme and the social situation of many Europeans was the topic in the European Parliament. Speaking before the European Parliament, both the Greek Finance Minister and the Labour Minister emphasised Greece’s achievements so far. No other democracy had achieved so much in peace times; competitiveness had increased enormously, said Finance Minister Giannis Stournaras. Giannis Vroutsis, the Greek Minister for Labour, Social Security and Welfare pointed out that his country would do everything to meet the conditions of the TROIKA. It was true that the labour market reforms and social reforms had been very hard for the population, but the Greek government had handled the implementation of the “reforms” with great sensibility. The social system had shown serious shortcomings, which now had been remedied. The pension system had also revealed inacceptable gaps, which had made it possible for pensioners to receive multiple payments they were not entitled to. Both ministers appealed to the European decision makers to approve further aid payments. Both Greek ministers stressed the necessity to restore trust and credibility in their country to attract investors. Giannis Stournaras named illegal immigrants entering Greece as another serious problem. This was the “open wound of Greece’s economy” and had to be tackled, commented the Greek Minister for Labour, Social Security and Welfare.
The MEPs of the Employment and Social Affairs Committee were critical. Many chose to comment on the precarious situation in Greece. The Spanish Social Democrat Alejandro Cercas insisted on the compliance with the Social Charter, which was a foundation of the European Union. Also addressed was the high level of youth unemployment, which is over 50 %. The high level of Greece’s military expenditure did also not escape criticism. Several MEPs wondered why no cuts had been made in this sector. The coordinated strike in several countries in the south of Europe left Europe in no doubt about its open wounds: people who had no job, people who had to spend their retirement in poverty and those employees, whose social benefits and wages had been drastically cut. The Green MEP Jean-Paul Besset said what many were thinking: Don’t you think it is time for a new course?