Greece is on the verge of bankruptcy. It is no longer able to pay its debts and financial markets, wary, did agree more loans.
For over a year, investors require interest rates ever higher to lend money to Athens. But Greece is not alone in Danger: the rates made by the different degree of trust accorded to each state borrower. While Germany enjoys favorable conditions, Ireland, Italy, Portugal and Spain, like Greece, must pay a “risk premium” .
European aid “to preserve financial stability”
In response to market speculation, the euro area is threatened. If member states of the Union agree to a rescue plan is mainly to protect themselves.
“Our responsiveness imperative because it is the stability of the euro area is at stake for the first time in its history” and declared May 3 Christine Lagarde, French Minister of Economy.
On the night of 3 to 4 May 2010, the French National Assembly voted a loan of 16.8 billion euros over three years to Greece. (Of a total 80 billion euros promised by the European Union, in addition to another $ 30 billion proposed by the International Monetary Fund).
But if a majority in parliament approved the text, the elected Socialist disagreed with the interest rate provided the loan at 5%. In effect, this money will be lent itself borrowed by the French state at a rate of about 3%.
“The rate is problematic because it is believed that between punishing a country and help, he must finally choose” (J. Cahuzac, socialist president of the Committee on Finance).
Some already denouncing a plan to save cost for lifeguards. Others think that this could be the first in a long list.
Support in exchange for serious efforts
Greece agrees to implement an austerity plan and savings.
“We urge the government to implement” measures to make budgetary savings “rigorous and determined” (Herman Van Rompuy, President of the European Council).
Greek Prime Minister Andreas Papandreou G. has already planned a draconian “Patriotism today means that we must all help the country out of crisis and civil servants must set an example”.
Among the measures adopted:
* Freeze wages for public service
* 10% decrease in premiums,
* Decrease of 30% overtime
* Stop hiring in many sectors in 2010
* Raising the legal age of retirement.
Strikes and manisfestations
Although 64% of Greeks approve these decisions (Kapa Research poll, daily To Vima), trade unions of civil servants do not décolèrent. They denounced the “unfair and inefficient sacrifices.
What followed was a major strike involving employees of the administration, health, education and transport. Some complain of a situation which aims to preserve the interests of big business and call for sacrifices to the bankers, ship owners and large corporations.
A social model undermined
Greece is known for its large civil service. In 1880, she held the state bureaucracy, the largest in Europe (214 staff per 10,000 population, against 176 in France, 126 in Germany and 73 in Great Britain). E, 2010, 80% of public expenditures are for salaries and pensions of civil servants (“Bankruptcy Greek economic model” Takis Michas. Post. 29/04/10).
According Effy Tselikas correspondent in Athens newspaper Liberation, “the government is unable to quantify exactly the size of the civil service”.
The compensation principles are vague: 50 different premiums, 13th and 14th month, the possibilities of “small” retirement after 15 years of service or “great” after 35 years.
But here as elsewhere, the officials are not the less affluent and their legendary privilege of “job security” is being undermined.