Tag Archives: Greece unemployment

Back to 2004? More like 1929

Illustration by Ilias Makris

He meant it as a warning, but when Finance Minister Evangelos Venizelos said a few days ago that Greeks’ incomes would be returning to 2004 levels, it could have been interpreted as the most optimistic thing the government has said for months.

In many ways, 2004 was the most hopeful year Greece experienced for decades. It had a growth rate that was the envy of many eurozone countries, it pulled off the miracle of successfully hosting the Olympic Games and the national soccer team became the biggest outsider to ever win the European Championships. It was a time when everything seemed possible.

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Greece – a year in crisis

Examining the social and political impact of the austerity programme the Greek government embarked on last year, for the German think-tank Friedrich Ebert Stiftung.

http://library.fes.de/pdf-files/id/ipa/08208.pdf

How Greece could go from solidarity to division

Solidarity is probably a word that you would not associate with Greece following the events of the past few days. Love and understanding were in short supply on the streets around Parliament, where protesters and police clashed this week, as well as within the walls of the prominent sand-colored building, where Greece’s politicians failed to strike a deal to form a government of national unity to oversee the latest austerity measures the country has to adopt to qualify for more loans from the European Union and the International Monetary Fund.

However, solidarity is a very relevant word in terms of Greece’s plight 13 months after the EU and the IMF agreed to bail it out with 110 billion euros ($157 billion) in loans. Firstly, it’s a word that’s on people’s minds because the government said it is introducing a “solidarity tax” that will lead to crisis-fatigued Greeks having between 1 percent and 4 percent of their incomes kept aside to help pay benefits for the rapidly growing number of unemployed.

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Is Greece drowning in Europe’s fruit salad?

Illustration by Manos Symeonakis

“Europe is like a fruit salad,” says Frank Schwalba-Hoth, perched on the edge of his seat at the European Parliament’s cafe in Brussels. Normally, our surroundings would be a hive of activity but this week the MEPs have buzzed off to Strasbourg, the Parliament’s other home. But even if there had been a throng of politicians from the 27 member states around, the topic of discussion — Will Greece survive? Will the EU survive? — would have been too absorbing for us to notice.

Schwalba-Hoth, a German politician who was a founding member of the country’s Green Party and served as an MEP in the 1980s, is engaging company. He now works as a networker and consultant in Brussels and his knowledge of the workings and history of Europe’s institutions is unrivaled. He believes the Greek debt crisis and the threat it poses to the euro is just the latest in a long list of challenges that the EU, which traces its roots back to the European Coal and Steel Community founded in 1951, has faced in its long history.

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Hey Merkel, leave the Greeks alone

Illustration by Manos Symeonakos

A year ago, a month ago, perhaps even a week ago, German Chancellor Angela Merkel’s comments about Greeks needing to work more would have gone down as badly in Athens as a joke about room service in the Strauss-Kahn household. They would have sparked another exchange of barbed comments between Athens and Berlin and further histrionics from the more rabid elements of the media in the two countries. This time, Merkel’s words landed quietly on a pile of other comments made about Greece over the last few days.

Greeks have been hit this week by a barrage of opinions on debt restructuring, new loan agreements and even political consensus. And at the end of it, they are none the wiser. Restructure now, say some economists and European officials. It is too early, others say. Only soft restructuring should be discussed, argue some experts. Substantial haircuts are required if Greece is to survive, say others. Greece will need new loans to stay afloat, say the whispers in the corridors of power in Brussels and Washington. We are not applying for any more emergency funding, say those who hold power in Athens. Get your political parties to agree, says a European commissioner. It is our democratic right to disagree, says the leader of the Greek opposition.

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Greece, land of pain and joy

Illustration by Manos Symeonakis

There are rare moments when a thread of togetherness winds its way through a country to lift its everyday burdens. Sometimes, these moments are born from political, sporting or other types of victories. But victories tend to bring out the worst as well as the best in people. It’s usually moments of grief or sadness that stoke the purest of emotions, creating a fleeting sense of community before it’s sucked into the morass of daily stresses and strains.

Greece experienced such a moment last Sunday when the death of singer-songwriter and musician Nikos Papazoglou was announced. He was an unassuming man who made rare public appearances and dodged the media spotlight. The reaction to his death was a reflection of people’s love for his pure and passionate music, but it was also a sign of respect for Papazoglou the human being: as an artist he shunned commercialism and stayed true to his values and as a man he remained humble and generous despite his fame.

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Reaching the age of consensus

Illustration by Manos Symeonakis

It was ironic that as the Greek government supposedly went in search of consensus last week, the streets of Athens should look just like the streets of other European capitals. As Prime Minister George Papandreou embarked on his doomed attempt to reach agreement with opposition party leaders, the only place where there seemed to be any unity of opinion was on the streets.

Student protestors in London raged against a coalition government pricing many of them out of university education, Italians vented their frustration at the seemingly impossible survival of Prime Minister Silvio Berlusconi while in Athens private and public sector workers expressed their anger at the latest set of reforms that are changing the face of Greek society.

Amid this turmoil, like the fishing boat skipper setting out for sea as the perfect storm looms, Papandreou cast his nets in the hope of catching a public relations victory. His effort to achieve “consensus” can be seen as nothing else but a frivolous foray into the choppy waters of political gamesmanship when there are much more pressing issues to deal with, such as thousands of Greeks losing their jobs and the country going through a violent adjustment to economic reality.

At a time when Greece, as well as many other countries in Europe are beginning to resemble the fractured British society of the Margaret Thatcher years, one of the former UK prime minister’s comments comes to mind: “To me, consensus seems to be the process of abandoning all beliefs, principles, values and policies. So it is something in which no one believes and to which no one objects.” It perfectly sums last week’s aborted attempt to build accord between the parties.

Ostensibly, Papandreou invited the other party leaders for talks to find common ground on the challenging reforms prescribed by the European Union and the International Monetary Fund and to adopt common positions ahead of the EU leaders’ summit in Brussels at the end of last week, where politicians were due to agree on the details of the permanent support mechanism for members with sovereign debt problems. In reality, though, there were no grounds for believing that any of the political leaders would agree to common positions on the reforms or on what positions Greece should adopt at the EU negotiations.

It was delusional to expect any kind of understanding on the structural changes given that they were due to be voted through Parliament a few hours after the party leaders met Papandreou. It’s no formula for success to encourage someone to join you on a journey when your bags are already packed, the keys are in the ignition and the engine is running. Understandably, none of the other leaders decided to jump in the moving vehicle. As New Democracy chief Antonis Samaras pointed out, there is a world of difference between “consensus” and “consent.” None of the other parties had been consulted about the content of the bill on the restructuring of public utilities such as the Hellenic Railways Organization (OSE) and the redrafting of labour laws. Once the legislation has been submitted to the House, the role of the opposition parties is to debate it and then vote for or against it – the time for consensus-building has passed. But even at this late stage, the government did all it could to antagonize the opposition rather than encourage unity by submitting the reforms as an emergency bill and thereby limiting debating time to an absolute minimum. It’s no surprise that the Coalition of the Radical Left (SYRIZA) leader Alexis Tsipras decided to boycott the talks with Papandreou – being portrayed as an accessory to policies you do not agree with, nor have had any part in shaping is not something that any young politician wants to have on their CV.

The reasoning that Tuesday’s “consensus” talks would firm up Greece’s positions ahead of the EU leaders’ summit was also feeble. Papandreou had already made his government’s ideas on some of the key issues crystal clear both at home and abroad. He had been shouting from the European rooftops for some time that Athens was in favour of the creation of a Eurobond and against private bondholders having to accept lower returns, or a “haircut”, on their investment as part of a permanent bailout scheme. It’s implausible that Papandreou would have suddenly performed a volte-face because Communist Party (KKE) leader Aleka Papariga or the Popular Orthodox Rally’s (LAOS) Giorgos Karatzaferis expressed misgivings. As it turned out, the Brussels summit was a damp squib rather than a landmark moment demanding national agreement from all of Greece’s politicians.

There is no doubt there are few choices in the sticky position Greece finds itself– there is never much wiggle room when you have been backed into a corner. But this doesn’t mean that everyone has to agree on the course being followed to get Greece out of the crisis. After all, it has never been the role of any opposition to provide the sitting government with succour. Its duty has always been to challenge the government’s policies, to highlight its failings and to offer alternatives. One area where Greece’s opposition parties can be seriously criticized is not in their inability to find common ground with PASOK but in their failure to provide plausible alternatives. Samaras developed a pie-in-the-sky scheme to wipe out Greece’s debt by the end of 2011, which was roundly rejected in the November local elections. In democracies, opposition parties have and always will be judged by the quality of their opposition, not the level of consensus they achieve with the government.

Greece is going through a period of immense upheaval, during which, as Samaras said “the terms by which millions of Greeks live are changing.” Clearly, if everybody agreed on the recipe for change, this process would be straightforward but it would also mean our living, breathing democracy would be brain dead. If people are not to question their government’s choices now, then when? Why shouldn’t voters or politicians doubt the efficacy or fairness of some of the EU-IMF-prescribed decisions?

From the latest package of reforms, for instance, few would argue with reducing wages at public enterprises, where many employees had built cash-lined fiefdoms, and cutting costs at public transport companies that are losing taxpayers’ money by the bus-load. In fact, New Democracy supported these provisions, proving that you don’t go in search of consensus; you build it around your ideas. In contrast, it was much more difficult for the opposition parties to back the articles of last week’s bill that allow companies to bypass collective labour contracts by offering employees in-house deals. This is a clear challenge to the rights of employees in the private sector, who unlike their pampered public sector counterparts have only been enjoying the protection offered by collective contracts since the 1990s. These agreements, which blossomed after Greece’s entry into the EU, are designed to give workers more reasonable pay and conditions and shelter from unscrupulous bosses, of whom there are many in Greece. As such, they are completely in keeping with the EU’s ideal of creating fairer, more socially conscious societies. To strip away these rights, which include respectable compensation deals for sacked employees, as jobs dry up and Greeks have to think about how they’re going to feed themselves and their families only increases the sense of insecurity.

Equally importantly, it’s an affront to the section of Greek society that has carried the country for the last few decades. Private sector workers, of whom there are about 2 million in Greece, have been the ones who have consistently paid their taxes and social security contributions – after all, their wages are taxed at source. Whether the employers who have withheld this money have been equally diligent is another question. Yet, despite their unswerving dedication to fairness and the advancement of national cause, it’s these workers that find themselves being punished by the latest measures, which look like a precursor to collective contracts being scrapped altogether and private sector wages being forced down.

In this climate, therefore, it seems unrealistic, almost offensive that voters and opposition politicians are being asked to give their consent without the government making any effort to win what is a crucial argument. The bypassing of Parliament and collective contracts and the mantra that “there is no alternative” does not make for a healthy democracy, or for a public that can find much good in the measures. It’s a mix that leads to people losing their belief in the political system and seeking answers, a voice and, in some cases retribution, on the streets. After all, the way things are going, this is where an increasing number of Greeks will find themselves anyway.

This commentary was written by Nick Malkoutzis and was published in Kathimerini English Edition on December 20, 2010.