austerity Archives

The Greek government invited leaders of five South-European countries in order to accelerate cooperation in the economic field. German newspaper DWN writes that the main goal of the alliance would be to counter the austerity policy of the German government.

Greek Prime Minister Alexis Tsipras is said to have invited the leaders of five South-European countries to a conference which will take place on September 9, in Athens, the newspaper wrote citing Greece-based news agency ANA-MPA.

The meeting is aimed at discussing “common” economic, political and institutional challenges, particularly focusing on the EU’s austerity policies and migration.

“Athens consciously seeks closer cooperation between the southern EU member states,” DWN wrote.

According to the media source, with this move the Greek Prime Minister hopes to ease austerity measures and come out of the current financial crisis.

France, Italy, Spain, Portugal, Cyprus and Malta are expected to attend the conference.

Greece is currently negotiating its way through its third bailout agreement with its creditors. Having had to be rescued a third time, Greece is being given financial support in a series of tranches of money after meeting strict conditions on changes to its fiscal policy.

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In short, Greece is being called on to make severe cuts to public services, while widening and increasing tax collection and making major reforms to its state pension system. The austerity measures are deeply unpopular and have led to demonstrations and strikes for years.

Earlier in April, Greek Prime Minister Alexis Tsipras and Portugal’s Prime Minister Antonio Costa signed a joint declaration in which both classified the EU’s austerity policies as “wrong”.

“This austerity policy weakens economies and divides society,” the two politicians stressed and expressed their dissatisfaction with the EU.

Greece’s two largest trade unions have started a 24-hour nationwide walkout to once again protest against austerity measures imposed by the government. The general strike has brought public services to a standstill.

Greek unions launched a general strike Wednesday in protest at harsh spending cuts the government has been enforcing to secure more bailout tranches from international creditors.

The general strike precedes a planned one-day visit to Greece by German Chancellor Angela Merkel on Friday.

Wednesday’s industrial action was directed in particular against Athens’ plan to lay off 11,000 public servants this year, with 4,000 state workers already dismissed in recent months.

The walkout left public services and schools shut across the country. Dock workers also stayed at home, leaving tourists stranded at islands because ferries did not operate.

Doctors and nurses at state hospitals also took part in the walkout and pharmacies remained closed.

Anger and frustration

“Today’s strike action is being held for the working class to respond decisively to the measures the government is deciding against workers’ rights, unemployment and the abolition of collective wage agreements,” said leftist PAME union spokesman Giorgos Pondikos in a statement.

Police said at least 6,000 people took part in an initial demonstration in Athens, with more protest marches and allies scheduled throughout Wednesday.

Repeated income cuts and tax hikes had deepened a six-year recession in Greece, with unemployment standing at a record high 28 percent in the southern eurozone nation.

The government, however, said it saw signs of improvement, with the economy expected to return to growth this year and Athens planning to return to capital markets soon for the first time in four years.

hg/ipj (AP, dpa)

Greece Seeks to Create South-European Alliance to Protest ‘Austerity Policy’

Anti-austerity general strike cripples public life in Greece