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Unemployment Benefit Goes Down to Ridiculous €359 per Month

Greece rushed to obey to its lenders dictates ahead the Eurogroup meeting on Thursday afternoon. Just a couple of hours earlier the Ministries of Finance and Labour had hastily signed an agreement that the unemployment benefit will undergo reductions of 22% as the minimum wages. Unemployed Greeks will receive (ridiculous) €359 per month. The agreement was signed as a ‘goodwill gesture’ to the Eurogroup, Greek media reported.

The new law will go into force on March 12, 2012. It will immediately affect 290,000 jobless men and women, who will see their unemployment benefits being reduced by one whole 100-euro bank note per month. Not all of the one million unemployed Greeks receive benefits as they are given by the Employment authority only for 12 months, regardless of the working years.

Yesterday, former unionist and current Labour Minister Giorgos Koutroumanis had created some false hopes to the unemployed implying that the jobless benefits would not suffer cuts.

PS I hear of pensions being cuts, of health care services being cut, of benefits being cut, but I hear of no reductions in the employees’ contributions to social insurance funds. Helloooooo? Anyone?

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12 comments

  1. @PS: what’s there NOT to understand? Why are you even have to ask? It should be totally clear why benefits are going down and contributions are going up. Tssss, go figure. Po-po! The’ mou. Ti na kanoume. Etsi einai h zoi… :mrgreen:

  2. Isn’t it strange how it can take years to recover any money from people who have avoided paying millions of euros in Tax because of the appeals/courts system and yet the government can take from the lower class overnight!

    Isn’t it also strange that on the day the unemployment benefit has been lowered, it is revealed that the Prime Minister has waivered his salary and takes no pay atall – is that supposed to make us all feel better and applaud him? Or perhaps it’s to make the unemployed think “Oh well if he can take no pay then we can live on less too!

    • keeptalkinggreece

      no, nothing is strange. low classes are defendless. Papademos salary has not to do with the unemployment benefits but with the 2nd bailout that will enslave us for the next 30 years, long after the PM has gone home as pensioner.

      • There is of course a touch of sarcasm in my comments because the rich are getting richer and the poor are getting poorer. I have read that the IMF have asked Greece to reduce the Tax threshold from 5,000 euros per year to Zero, apparently this has not been decided upon yet. There is nothing left to take from the lower classes – they need to start at the top and work down.

        • keeptalkinggreece

          unfortunately they start from the bottom and never reach the top. Yes, there is talk about taxing annual incomes 3,000 euro or even zero. Whereas EU officially determines poverty line income as 7,000 gross per year. The percentage of taxing zero income? A nice moutza