Frantic Negotiations & Tough Bargain in Athens as the Society Boils

Posted by in Economy

Frantic negotiations and tough bargain are taking place in Athens between the Troika and the Greek side, while the national media report of new demands raised by Greece’s lenders representatives. They seek additional measures worth €3.3 billion for 2012 as lowering the minimum wage -rumors speak of €600 gross/month – will hit the social security funds. There are claims that the Troika wants a further cut of 20% at the main pensions, while ideas like lowering the yearly tax-free income down to €3,000, massive dismissals of hourly and associate teachers,  closure of schools and  closure of  state institutions have been on the table as well. The Troikans want 15,000 civil servants out of the main and broader public sector until the end of 2012 and 150,000 lay-offs until 2015. Also lay-offs in municiaplities sale of state-enterprises.

If one takes into consideration the cuts in the health sector, it looks as if the only state institution to remain untouched from the cuts will be the Greek parliament…

The meeting of PM Lucas Papademos with the leaders of the coalition government parties has been postponed for tomorrow Tuesday as the negotiations with the Troika have not been concluded yet.

The Troikans have an interesting day in rainy Athens rushing from the Treasury to Labour Ministry and from there to Finance Ministry. Later on the day they will rush to Papademos’ office.

At the same time, the society is boiling, the deputies of the coalition government parties  are boiling and the public and private sector  trade unions are boiling as well. There is a general strike and a protest march scheduled for tomorrow. The protests on Monday afternoon have been more or less cancelled due to heavy rainfall at the time of the meetings.

Apparently to calm down the boiling atmosphere, Papademos has reportedly ordered the Finance Ministry to make clear to the Greeks what it will mean for them, should the country default.

Either, or… we, the citizens,  are ‘default’, aren’t we?

measures sources: To Vima, Proto Thema, NewsIt

PS I wonder why the Troika-guys are never pictured wearing coats. Secret anti-freeze remedy, maybe?