Protests in Greece

"Landep News"

Protests in Greece

European finance ministers imposed on Thursday severe conditions on Greek government in order for the 130 billion euro bailout to be delivered. According to the ministers, the Greek parliament will have to approve a package of reforms and new cuts agreed with the International Monetary Fund and the European Union.
Furthermore, Greece must acquire 350 million euro from budget cuts by next Wednesday, when the European finance ministers meet again. Greek unions have already declared a 48-hour strike against the austerity measures. People are already protesting in the streets of Athens, and violences required the presence of riot police.
By the new measures, Greece should include 15,000 public-sector jobs cuts, liberalization of labor laws, lowering of the minimum wage by 22%, from 751 to 600, and the negotiation with the banks for a write-off.
A key point in the project represents a reform in the pension system, whose overhauling could save 300 million euros per year. An agreement is said to have been reached although it was not clear how the 300 million euros would be saved.
The meeting of the 16 European finance ministers was convened on Thursday and the Prime Minister of Luxembourg set the conditions Greek parliament has to ratify in the parliament by Sunday the new package. The Luxembourg PM also demanded that political assurances be made that the changes would be politically supported.
In order for Greece to receive the next bailout package, reforms must be made, the 350 million budget cuts be passed through parliament and the political support be offered. The European countries that are members of the eurozone fear that if Greece cannot service its debt it may enter default and drag the entire eurozone with it.
According to EU economic affairs commissioner Olli Rehn, eurozone countries may open a different account for Greece, which would block a part of the state’s revenues in order to assure the repayment of the bailout loans.
There is concern among the EU ministers that the overall plan for Greece would still not be enough to save Greece from default, and that even the plan agreed at the end of the last year to introduce a financial discipline is not going to be enough to save the eurozone.
Greece went through another round of austerity measures, which provoked a violent reaction of the people in the streets. Unemployment in Greece has reached 20%, which prompted the unions to say that they would not accept these “painful measures.”

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