Grabbing a coffee for 20 cents less doesn’t really sound like the start of an economic recovery but who knows, maybe after this week’s decision to cut value added tax at restaurants and cafes, Greece will soon be measuring out its success with coffee spoons.
Naturally, the government has made the most of the skeptical troika finally giving in on a longstanding Greek demand for VAT in the food service sector to be reduced from 23 to 13 percent. Even so, Prime Minister Antonis Samaras announcing the temporary measure in a televised address was a touch excessive given he only informed the nation that a nightclub drink would soon be about 50 cents cheaper. For the government, though, the symbolism of the reduction is perhaps more important than its economic impact.
Samaras presented it as a personal triumph of persistence. Deputy Prime Minister Evangelos Venizelos said it was a sign that the troika had begun listening to Greece. Indeed, the VAT reduction represents something of a milestone in the Greek bailout program as tax hikes have been the norm and a regular source of much anger over the last three years. It was billed as the first tax cut since the program began, which is not quite accurate. Technically, it was the second as a 15 percent reduction in the emergency property tax introduced in 2011 had been agreed a couple of months earlier. This came after pressure from Democratic Left, which was still part of the coalition at the time. There was no televised address, though.
Posted in Economy, Greece, Greek politics
Tagged Antonis Samaras, Company tax, Greece, Greek bailout, Greek crisis, Greek economy, Hospitality, Restuarants, Tax, Tourism, Troika, VAT
Prime Minister Antonis Samaras marked one year in the job on Friday by becoming the leader of what was effectively Greece’s fifth government in four years after Democratic Left’s decision to drop out of the coalition left his New Democracy party and PASOK as the two that remained from a previous partnership of three. The dire economic situation, the pressure of its lenders and the historical absence of consensus politics in Greece meant it was always going to be a challenging job. Samaras enters the second year of his premiership on an equally shaky footing.
Democratic Left’s departure had been in the making for some time. The three parties that formed the coalition in June 2012 did so knowing that Greece had been balancing on the precipice but their intention of moving the country to safer ground soon lost its potential to drive this three-wheeled vehicle on. Beyond securing Greece’s place in the euro and rebuilding trust with the skeptical troika, there was no grand, or even less pronounced, vision to spur the coalition’s efforts. As the drachma risk faded and lenders were placated, so the three-party government’s raison d’etre dissolved. It was replaced by friction fuelled by each party’s desire to stake its claim to any positive development and distance itself from anything negative. As the stardust was blown away, the political and ideological splits were revealed.
Posted in Greece, Greek politics
Tagged Antonis Samaras, Democratic Left, Evangelos Venizelos, Fotis Kouvelis, Greece, Greek coalition, Greek politics, New Democracy, PASOK, Troika
It is one year to the day since Greece held its second general election in two months and third in three years. What better way to celebrate the occasion than trying to relive the uncertainty and tension we experienced during the summer of 2012? The leaders of Greece’s three coalition parties go into a meeting this evening with the future of their government less secure than it has been at any point during the 12 months. The cause of their dispute suggests that even if this crisis is overcome, deeper problems lie ahead.
The spark that threatens to burn the house down is the closure of public broadcaster ERT. Prime Minister Antonis Samaras, who ordered the shutdown, suggested over the weekend that the bigger picture in this standoff is that he is a reformer and the others, both in his government and in opposition, are not. But what does he really mean by reform?
His justification for closing ERT was that it was overstaffed, too expensive and a source of corruption. Greece needs a more modern broadcaster, along the lines of the BBC, it has been suggested. All of these things may be true to a greater or lesser extent but there has been no attempt by the government to back this up with any substance, just the standard smattering of platitudes.
Posted in Economy, Greece, Greek politics, Media
Tagged Antonis Samaras, Democratic Left, ERT, Greece, Greek bailout, Greek coalition, Greek elections, New Democracy, PASOK, Public broadcasting, reforms, Troika
Having ploughed on through a number of sticky patches over the last 12 months, it would be more than careless of Greece’s coalition government to sink into the mire due to differences over how to deal with public broadcaster ERT. Yet, a year on from when a second election in June led to the formation of the three-party administration, its future seems less secure than ever.
Prime Minister Antonis Samaras’s decision to announce on Tuesday the immediate closure of the state TV and radio service left his coalition partners, Evangelos Venizelos of PASOK and Fotis Kouvelis of Democratic Left, apoplectic and demanding a meeting, which will take place on Monday and could put the administration at risk if a compromise is not found. They had not consented to this move and there had been no debate about it in Parliament. A legislative act was signed only by the ministers from Samaras’s conservative New Democracy party and, after 75 years, the broadcaster went silent.
The problem for Samaras is that the backlash to his decision was rather noisy. ERT employees refused to comply with orders to abandon their posts and continued to broadcast with the help of volunteers who got the broadcaster’s main TV news channel, NET, back on air. Thousands of people gathered outside the service’s headquarters in northeastern Athens and opposition parties condemned the decision. Criticism soon began arriving from journalism federations outside Greece. The European Broadcasting Union (EBU) also labelled the shutdown “a damning first in the history of European Broadcasting.” In a letter to Samaras, 50 director generals of Europe’s public broadcasters said his action was “undemocratic and unprofessional”.
Posted in Greece, Greek politics, Media
Tagged Antonis Samaras, Democratic Left, ERT, European Broadcasting Union, Evangelos Venizelos, Fotis Kouvelis, Greece, PASOK, Public broadcasting, reforms
One of the great moments in global radio is BBC Four’s “Thought for the Day.” Greek state broadcaster ERT is one of many that have adopted the format, giving a couple of minutes of airtime on its Second Program to the great and good musing about faith, current affairs and life in general. One can only wonder, though, exactly what the government’s thought for the day was when it decided to shut down ERT and dismiss some 2,700 staff on Tuesday.
There was plenty wrong with ERT, which had long been treated like most other parts of the public sector by successive governments who felt they had supporters to take care of and money to burn. Its 19 regional radio stations speak of an excess that was simply unsustainable. Thessaloniki, a city with 800,000 inhabitants, had three radio stations when Inner London, which has a population of more than 3 million, has only one.
There was also a lot to cherish about ERT, though. It continued to make challenging documentaries when practically nobody else in Greece did. Its stations played music that nobody else would. Even its insistence on sticking with tinny 80s theme tunes for its news and sports shows had a naive charm about it. Most of all, though, it did the job that all national broadcasters should do by being a common reference point for millions. There are few more emotional experiences one can have listening to the radio than hearing Diaspora Greeks cast to the four corners of the earth calling in to a Saturday night show on the Second Program to request Greek songs and share their memories and feelings about the homeland they left behind.