;)
tagged: competitiveness, further cuts in private sector, Greece, minimum wages, Olli Rehn, radio interview, YLEOlli Rehn: Greece’s Private Sector Wages Need Further Cuts (incl Photo-Report)
Posted by keeptalkinggreece in Economy, Society
EU Commissioner for Economic and Monetary Affairs Olli Rehn told a Finnish radio that wages in the Greek private sector have not reduced by as much as Greece’s lenders consider to be enough to improve what they call ‘competitiveness’. Rehn’s statement comes the day the bill concerning the minimum wages cuts passed through the Greek parliament. In express procedures. So ‘express’ that the bill has already been published in the Official Gazette of the country. More than 360,000 employees will see an average of € 200 less in their pockets as of March 1st. Furthermore, Greek employees will have to come along with €586 per month (€480 net), in a country where you can rent a 50qm flat without heating for €200.
“EU Finance commissioner Olli Rehn told YLE on Wednesday that the Greek public sector has contributed significantly to the country’s attempt to get its finances in order, but said the private sector should do more.
Rehn emphasised that public sector reform is a central part of the programme for Greece, and that the reforms already set in motion should be completed to bring down wage and other costs paid out of the government budget.
At the same time, wages in the private sector have not reduced by as much, and Greece’s cost base is therefore regarded by Rehn as too high. The emphasis now is on ensuring that Greece reduce costs to improve its competitiveness.
Rehn denies that Greece is regarded as a possible cheap production country for Europe. For example the minimum wage is still higher than in Portugal.
Rehn believes that Greece will remain committed to the austerity measures after elections planned for April, despite the falling popularity of the two government parties who have committed to implementing the reforms, PASOK and New Democracy. ” (YLE radio website)
However I can’t say whether Olli Rehn had further wages cuts in mind when he was saying that.
Photo Report: Olli Rehn performs in a private show the wages cuts in Greece’s private sector
From so much…
…and so much…
…knife sharp cuts…
Wages will become so much!
;)
;)
;)
;)
;)
Not trying to be funny but can I get a question answered? Who is running our country? We have a President, an unelected prime minister, two factions,who no matter what they say agreed to everything, we have olli, who says even though “oops we made a mistake in our calculations Greece is in worse shape than we thought but thanks for the signatures”, tells finnland we haven’t broken the Greeks backs yet they are getting paid too much a month in the private sector. Again who is running our Patrida?
after thorought thinking and to tell you the truth… I have no idea! they have sold eveyrthing anyway.
This is getting funnier.
EU: You Greeks screwed up. We are here to help you. But don’t tell me you are suffering. Plainly not enough. More cuts. That’s the only way to save you.
Greek politicians: Look, we screwed up. We politicians are always act in the best interest of the people. We need to get paid. But we as a country must sacrifice more. There is no other way out.
Greek people: We messed up. But we have suffered enough. We can’t do this and accept this any more. Neither the EU nor our politicians are on our side. But all we can and will do is shouting. At the end, we must accept. What else can we do?
Hmmm, thought he was telling about a ‘small personal’ matter in that last picture? But if that would be so the caption above that, ” …knife sharp cuts…” is suddenly way to scary for any man to contemplate…
I had thought the same, Antonis …lol
The north can not compare with the south in that respect Antonis it’s always cold up there. LOL
I wonder if some day there will be a Greece of the North lol
I know Xiotie, beleive me I know… But at the moment I am freezing my *behind* off the last couple of months here in Lakonia. Let’s start to kalokairi, shall we?!
I wonder what all these private sector wages cuts are about anyway. If a company earns enough money to pay its employees, it will pay its employees. If a company doesn’t earn enough money it needs to fire people or negotiate a wage cut with its workforce or save money elsewhere or go bankrupt. What has the private sector to do with the national budget? Let the private sector sort out its own deals and tackle public income and public spending. Here are the problems. It’s a folly to cut private sector income. Cutting public spending has enough adverse effects on the economy already, but the private sector can look after itself.
“COMpetitivenss” is the magic word, Bogol. Greece has to be as competitive as Portugal, so that the big foreigner investor will not need to run down to China to find cheap labour forces. I don’t know about Portugal, but if they won’t ease the bureaucracy here, nobody will ever invest a single cent.
Well, you probably know for yourself that this “competitiveness” babble doesn’t make any sense. If I would be a big time investor I’d either want to sell my stuff or produce it. For selling imported goods I’d pick such countries with good purchasing power – low income is a deterrent. If I want to produce cheap crap I wouldn’t agonize whether to go to Greece or Portugal but make my choice between Bangladesh and Vietnam. If I wanted to produce quality products I’d expect to hire skilled labour, engineers, technicians, mechanics, accountants. For € 500 a month you get either the bottom group or the truly desparate. Not a good investment environment. As you said: for investments within Europe it’s criteria like smooth bureaucracy, reliable politics and a sound infrastructure which are more important than a few bucks more or less for wages. Again this is something only the state can provide and not the private sector. You may bring down the Greek minumum wage to 50 euros but still nobody would invest here unless the Greek government gets its act together.
I agree. So, the question is still standing: what are these private sector cuts about?