Greek trade unions vowed on Wednesday to bring the country to a halt
next week after agreeing a two-day general strike in protest at the
latest round of welfare and wages cuts.
The strike call came after the government outlined a series of austerity measures in its revised 2013 budget that predicts a sixth year of contraction and an escalation in its debt-to-GDP ratio to 167%. The prime minister, Antonis Samaras, said negotiations with the major lenders were concluded and it was time for MPs to vote through measures to secure €31bn (£24bn) of fresh loans.
The €13.5bn of cuts for 2013-14 include a two-year increase in the retirement age from the current average of 65, salary and pension cuts, and another round of tax increases, including the levy on interest from bank deposits, up from 10% to 15%. The vast majority of measures are to be implemented in 2013 and include a €4.6bn cut in pensions and a €1.2bn reduction in salaries.
Unions responded by announcing a 48-hour general strike that could persuade some coalition MPs to join opposition groups in rejecting a bill to be tabled by finance minister Yannis Stournaras next week.
However, there was confusion on Wednesday after some European finance ministers warned they still needed to address some outstanding budget issues before releasing funds to the Greek government.
German finance minister Wolfgang Schäuble was pessimistic about the chances of a quick decision on payment of the bailout instalment. "To secure the tranche being paid out, we need preconditions to be met that still have not been achieved," he said.
The strain in the governing coalition was evident earlier, in a parliamentary vote on a bill to allow the government to privatise public utilities. The legislation was passed, but 15 MPs from the Pasok party, which is a junior partner in the coalition, voted against certain articles. Dissenters included former prime minister George Papandreou, who opposed one article in the legislation.
Read more: http://www.guardian.co.uk/world/2012/oct/31/greek-unions-two-day-strike-austerity
The strike call came after the government outlined a series of austerity measures in its revised 2013 budget that predicts a sixth year of contraction and an escalation in its debt-to-GDP ratio to 167%. The prime minister, Antonis Samaras, said negotiations with the major lenders were concluded and it was time for MPs to vote through measures to secure €31bn (£24bn) of fresh loans.
The €13.5bn of cuts for 2013-14 include a two-year increase in the retirement age from the current average of 65, salary and pension cuts, and another round of tax increases, including the levy on interest from bank deposits, up from 10% to 15%. The vast majority of measures are to be implemented in 2013 and include a €4.6bn cut in pensions and a €1.2bn reduction in salaries.
Unions responded by announcing a 48-hour general strike that could persuade some coalition MPs to join opposition groups in rejecting a bill to be tabled by finance minister Yannis Stournaras next week.
However, there was confusion on Wednesday after some European finance ministers warned they still needed to address some outstanding budget issues before releasing funds to the Greek government.
German finance minister Wolfgang Schäuble was pessimistic about the chances of a quick decision on payment of the bailout instalment. "To secure the tranche being paid out, we need preconditions to be met that still have not been achieved," he said.
The strain in the governing coalition was evident earlier, in a parliamentary vote on a bill to allow the government to privatise public utilities. The legislation was passed, but 15 MPs from the Pasok party, which is a junior partner in the coalition, voted against certain articles. Dissenters included former prime minister George Papandreou, who opposed one article in the legislation.
Read more: http://www.guardian.co.uk/world/2012/oct/31/greek-unions-two-day-strike-austerity
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