Sunday, August 8, 2010

Greek open in isolation zone strife over purgation

Renee Maltezou and Ingrid Melander ATHENS Tue Mar 9, 2010 1:27pm EST

ATHENS (Reuters) - Greece"s new austerity package has driven a wedge between private and public sector workers, pitting resentful private employees against civil servants seen as privileged over who should pay for the country"s debt crisis.

World

Under pressure from markets and EU partners, the government announced a new austerity package last week worth 4.8 billion euros ($6.53 billion) in savings, including a hike in VAT and duties, cuts in civil servants" income and a pension freeze.

Labor unions called strikes and polls showed that while Greeks accept the need for sacrifices they mostly opposed this package. On the streets of Athens, ordinary Greeks said the austerity was not hitting the right people.

"People are divided over the measures, because half are civil servants and the rest of us, the idiots, work to support civil servants. Why should I be paying for them?" said 58-year old businessman Yannis Kotoulas.

A survey by polling agency GPO on behalf of MEGA TV taken between March 4 and 8 showed 60 percent of 1,400 people surveyed disapproved of the new measures, while 39 percent backed them.

About half approved a cut in civil servants" holiday pay and a 52 percent majority still have a positive opinion of Prime Minister George Papandreou and prefer his PASOK party to the conservative New Democracy.

The most unpopular measure, opposed by three-quarters of respondents, was a 2 percent hike in VAT, widely felt to be hitting the poorest.

Some Athenians said opposition to the measures came largely from civil servants.

"The reason people are 50-50 is because this is a battle between the public and the private sector," said 32-year old IT technician Nikos Papadopoulos. He said he believed the measures were necessary and he would not strike.

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Greek civil servants receive on average higher salaries, work fewer hours and retire earlier than their private sector peers. About half a million are on the government payroll, and another 300,000 work in the wider public sector.

By law, civil servants cannot be sacked and are seen by many Greeks as a major source of corruption, especially in town planning authorities, tax offices and hospitals. Jobs in the public sector are often secured through political patronage. The number of civil servants tends to swell before elections.

"What is crucial for the government is to convince people that the measures are fair as well as effective," said Costas Panagopoulos, head of ALCO pollsters.

An ALCO poll over the weekend also showed respondents were divided. Panagopoulos said that a tax bill expected later this month should help show that high earners were also affected and create more acceptance for the measures.

Unions have stepped up opposition to the cutbacks. A second nationwide strike in two weeks is planned for Thursday and more frequent smaller walkouts have hit parts of the administration.

Analysts said people did not really believe they would change the government"s course with these protests, largely viewed as symbolic, but warned things could get tougher with the government if it does not show quickly that the measures work.

"Now people respond to announcements. When they become measures and they feel them in their pocket ... you will have far more serious demonstrations. They will not be as civilized as they are now," said Yanis Varoufakis, professor of economics at the University of Athens.

World

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