;)
tagged: austerity measures, bailout, debt restructuring, dominique strauss-kahn, Economy, Greece, IMFIMF-Chief asks Cuts for Greece’s Public Sector Wages
Posted by keeptalkinggreece in Economy, Editor
The Chief of International Monetary Fund could not be more clear! “Public Sector Wages” was the magic sentence he spitted out. Referring to Greece’s economic problems, Dominique Strauss-Kahn said that what Greece need is not debt restructuring but combat its biggest problem, which is competitiveness.
“The problem of Greece has nothing to do with debt, has to do with the competitiveness of Greek economy. We need to restore growth in Greece and to restore, we need to restore competitiveness”.
Strauss-Kahn said that after joining the euro Greece increased the wages in public sector by 100%.
With these statements IMF-Chief turned on the traffic light for the direction of the next package of austerity measures. Cuts in the wages of civil servants. It’s not a secret that Greek civil servants with a series of allowances at the very end earn more than the average employee in the private sector. At least 30,000 euro per year.
Of course, wages cuts in the public sector will force consumption to drop more and recession to grow. However cuts in public spending is an inevitable must for the Greek government. Even if it will disappoint and break the fundaments of the army of its voters. Only radical cuts in state spending will help the country. Let’s not hide behind our finger.We are bust anyway! Without the IMF/EU bailout Greece would have declared suspension of payments…
;)
;)
;)
;)
;)
