Economy World

Austerity in Greece: 19,000 employees laid off

As many as 19,000 Greek officials have received since the beginning of the week a notice indicating their implementation “worklist”, prior to their dismissal, reported Greek newspaper Ethnos on Tuesday.

“The creation of the reserve is not an accurate measure, but it must be adopted because it is one of the key commitments that will enable us to receive the next tranche of aid and sign a new agreement on debt” said the Greek Minister of administrative Reform Dimitris Reppas, was quoted as saying.

Greece is currently receiving the assistance of the European Union and the International Monetary Fund in exchange for austerity measures that include the creation of a “worklist”. Nearly 30,000 of 750,000 civil servants will be “worklist”  with a decrease of 40% of their wages by the end of the year. After a year they will be dismissed.

The first wave of layoffs has affected nearly 12,000 employees close to retirement, and 7,000 government officials, whose posts will be deleted or merged with other services as part of administrative reform.
The austerity measures taken by Greece also include a reduction in wages and pensions, increased taxes, privatization of public goods as well as structural reforms.

On yesterday Finance ministers of Twenty-Seven approved a new tranche of aid to Greece to 8 billion euros. In addition, the EU will soon approve an agreement on the second aid plan and the deletion of part of the Greek debt, which was agreed in late October.

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