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Greece approves new savings package as unions hit back at minimum wage cuts
ATHENS, Greece (AP) ' Greece's Parliament early Thursday approved new reforms to the country's struggling pension system, the latest move in a flurry of legislative action required to secure new international rescue loans that will stave off a Greek bankruptcy.
Lawmakers voted 213-58 in favor of a law that will merge debt-strapped supplementary pension funds, hours after the crisis-hit country's largest unions held protests and a work stoppage against further wage cuts and other austerity measures passed in recent days.
Wednesday's stoppage disrupted services at tax offices and other public agencies, and a protest was held outside the EU representation building in central Athens. Doctors at public hospitals and some private practices also held a 24-hour strike to protest health care spending cuts.
Greece is in its fifth year of deep recession and unemployment has roughly doubled since the start of the financial crisis, reaching 21 percent after more than two years of deeply resented savings reforms.
But the country is still running high budget deficits and is obliged to adopt a new series of cuts before it can receive funds from a new euro130 billion ($174 billion) bailout package from eurozone countries and the International Monetary Fund.
"Workers' rights are being lost constantly," said Nicholas Kioutsoukis, a senior member of Greece's largest union, the GSEE. "We need elections, so that the public can express its will on these issues."
Several hundred people took part in a protest in Syntagma Square outside Parliament, called by the GSEE and other unions as part of Europe-wide anti-austerity protests. The demonstration quickly fizzled out amid heavy rain, which also forced the cancellation of a concert organized by unions in the square.
Recent reforms include the planned closure of several state organizations, and provisions for 15,000 public sector job losses this year.
One of those agencies slated for closure is the Workers' Housing Organization, which assists low-income families with housing placements.
"I have a home loan with subsidies for interest payments from the organization, for which I'm currently paying euro750. If the organization closes and I lose the subsidy, the monthly installment will rise to euro1,200," said Evangelia Diamanti, a worker and beneficiary of a home loan from the agency.
"There is no money when you have a family with teenagers who have extra needs for school. You understand that ... our quality of life drops significantly."
Parliament late Tuesday approved new cuts in public sector pensions and government spending required to secure the international rescue loan package, the country's second in two years, while the Cabinet formally imposed deep cuts to the minimum wage.
As part of measures approved Tuesday, a 22 percent cut has been imposed on the minimum monthly wage, which currently stands at euro751 ($1,010) for private sector employees. For workers under the age of 25 ' where unemployment is running at about 50 percent ' the minimum wage has been cut by 32 percent.
The interim coalition government on Wednesday also formally launched a privatization offer for its Public Gas Corporation, DEPA.
The move is part of an ambitious program to raise euro11 billion ($14.8 billion) by the end of the year as the country seeks to pay down its massive debts.
The government, which holds 65 percent of DEPA, has already held talks on a potential sale with a top official from Russian gas supplier Gazprom Export, who visited Athens this week.
Theodora Tongas contributed to this report.