[QODLink]
Europe

Greece parliament approves job cuts

New law to pave way for 15,000 civil service layoffs and more taxes as part of bailout deal with EU and IMF.

Last Modified: 29 Apr 2013 05:59
Email Article
Print Article
Share article
Send Feedback

The Greek parliament has voted to adopt a law that provides for the dismissal of 15,000 civil servants as part of austerity measures imposed by the country's international creditors.
 
After heated debate late on Sunday, 168 deputies voted for the bill, with 123 voting against and one abstaining.

The new law will overturn what had been a guarantee for workers in Greece's bloated civil service of a job for life.

Around 800 people turned up outside the parliament to protest against the measure in a demonstration called by trade unions.

The bill provides for the dismissal of 15,000 civil servants by the end of 2014, including 4,000 this year, to meet conditions set by Greece's creditors for billions in bailout loans.

Civil service trade confederation Adedy condemned what it called the "politicians who are dismantling the public service and destroying the welfare state".

Private union GSEE said the bill would only worsen Greece's dire unemployment rate, which currently stands at 27 percent.

Creditors' conditions

Shrinking the public service is a condition set by Greece's so-called troika of creditors - the International Monetary Fund (IMF), European Union (EU) and European Central Bank (ECB) - to unlock loans amounting to $11.4bn.

The EU and the IMF have committed a total of $313bn in rescue loans since 2010, with the heavily indebted country obliged to pursue austerity measures in exchange for the international aid it needs to avoid bankruptcy.

The new law will speed dismissal procedures, which previously made it impossible to sack civil servants and saw the public sector swell over the years as every new administration brought in its own people.

Follow our comprehensive Euro Crisis spotlight coverage

The new law also extends weekly working hours for teachers, opens a number of professions to competition and reduces a controversial property tax by 15 percent.

Following parliament's approval, senior eurozone officials will meet on Monday to approve overdue payment of $3.65bn in rescue loans, Yannis Stournaras, Greece's finance minister, said.

Eurozone finance ministers will then meet on May 13 to release a further $7.8bn installment, he added.

Greece needs that money to pay wages, pensions and bonds held by the ECB Bank that mature on May 20.

The law implements an agreement Greece struck with EU/IMF inspectors earlier this month, which allowed them to state that the country was on track to meet its bailout targets.

400

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
In Brussels, NGO staff are being trained to fill the shortfall of field workers in West Africa.
Lawsuit by 6-year-old girl, locked up for a year, reignites debate over indefinite detention of 'boat people'.
Indonesian and Malaysian authorities are keeping a close eye on local supporters of the hard-line Middle East group.
Citizens of the tiny African nation say they're increasingly anxious of the fallout after alleged coup.
A humanitarian crisis and a budget crisis converge in the heart of the human smuggling corridor in Texas.
join our mailing list