Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

2/22/2013 (3 years ago)

Catholic Online (www.catholic.org)

Cut in pensions, salaries could be disastrous move for ailing European nation

"I am afraid that we may see a phenomenon that could cause a social explosion," Savvas Robolis, scientific director for the Labor Institute of the General Confederation of Workers in Greece (GSEE) says. Robolis is talking about the drastic austerity measures the European nation is undertaking to remain solvent.

'I am afraid that we may see a phenomenon that could cause a social explosion,' Savvas Robolis, scientific director for the Labor Institute of the General Confederation of Workers in Greece (GSEE) says. Robolis is talking about the drastic austerity measures the European nation is undertaking to remain solvent.

"I am afraid that we may see a phenomenon that could cause a social explosion," Savvas Robolis, scientific director for the Labor Institute of the General Confederation of Workers in Greece (GSEE) says. Robolis is talking about the drastic austerity measures the European nation is undertaking to remain solvent.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

2/22/2013 (3 years ago)

Published in Europe

Keywords: Greece, unemployment, pensions, unemployment, default


LOS ANGELES, CA (Catholic online) - These policies could create a crisis of insolvency within the country, undermining the very reason they were implemented - to repay the country's debt. These are the findings from the GSEE.

"Right now many people can't pay their taxes. That's why state revenue fell $395 million short of January targets. If that continues, I don't know if the state will be able to meet its obligations by June or July. It may not have the cash to pay salaries and pensions."

According to finance ministry data, the Greek state heavily subsidizes approximately 1.3 million pensions. It also pays the salaries of almost 800,000 state employees, roughly a quarter of those still employed in Greece. Failure to pay those pensions and salaries in full would drastically impact the state's own tax revenues, hindering its ability to maintain payments to international creditors.

According to the GSEE's Labor Institute, pensions and salaries have already been cut by 40 percent during the crisis. A new wave of austerity being implemented this year will raise those cuts to an estimated 50 percent. At the same time, Greeks have faced higher sales tax at the supermarket, higher fuel tax, a new property tax and a "solidarity fee" of one to three percent on their salaries.

The Greek taxpayer is bearing increasing indirect burdens as the government privatizes state enterprises. Commuters who use the country's main motorway, which runs from Athens to the northern city of Thessaloniki recently demonstrated as new toll booths went into effect.

In some cases it is unclear that the extra money raised goes to its intended purpose. The state's Human Resources Organization or OAED says it has not seen a penny of the solidarity fee, which was to raise $395 million a year to relieve unemployment. OAED pays unemployment benefits and runs retraining programs.

"These measures are unbalanced, unfair and chiefly ineffective," Vangelis Moutafis, GSEE's secretary for organization says. "They haven't brought prospects to the economy, but they have produced plenty of drama in society."

Finance Minister Yannis Stournaras is more optimistic. Although he remains green, on the job since last June, he pulled off a small miracle in bettering Greece's deficit target by half a billion Euros in 2012. Stournaras confidently predicts that the Greek recession will end in the last quarter of 2013.

"We have managed to turn the economy around," he proclaimed last month. "Towards the last quarter of 2013 we're going to have recovery, and definitely for the whole year in 2014. I feel sure, I feel certain, that this will be the last year of Greece's recession."

Even if he is correct, and Greece avoids the worst-case scenario of a unilateral default on its loans, it will have to contend with the social and political implications of entrenched unemployment.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for April 2016
Universal:
Small Farmers: That small farmers may receive a just reward for their precious labor.
Evangelization: African Christians: That Christians in Africa may give witness to love and faith in Jesus Christ amid political-religious conflicts.



Comments


More Europe

Belgian minister warns against offending Muslims, wait until you see the scary reason why! Watch

Image of Muslims take over a Parisian street for prayers.

By David Drudge (CALIFORNIA NETWORK)

A Belgian minister has a telling warning for his country as hearings begin into the Brussels attack that killed 32 people at an airport in March.  The reason for the warning is quite compelling. LOS ANGELES, CA (California Network) - A Belgian minister is warning ... continue reading


Women sentenced to three months for self-induced abortion in Northern Ireland Watch

Image of There are better solutions than abortion.

By Marshall Connolly (CALIFORNIA NETWORK)

A woman in Northern Ireland has been convicted of aborting her child, and sentenced to a three-month, suspended jail sentence. The woman left her baby in a trash bag for eight days until police were contacted. The case has sparked renewed debate over abortion in ... continue reading


World's worst nuclear catastrophe commemorated 30 years later (WARNING: DISTURBING IMAGES) Watch

Image of The Ukraine commemorates the 30th anniversary of Chernobyl's explosion.

By Kenya Sinclair (CALIFORNIA NETWORK)

Thirty years after the greatest nuclear disaster the world has ever seen, Ukrainians solemnly commemorate the 1986 Chernobyl nuclear power plant accident. LOS ANGELES, CA (Catholic Online) - The meltdown at the Russian plant began when an uncontrolled reaction ... continue reading


LISTEN NOW: Stolen manuscript reveals song not performed for 1,000 years Watch

Image of One Cambridge researcher admitted the music was nearly tangible (YouTube).

By Kenya Sinclair (CALIFORNIA NETWORK)

A Cambridge researcher and world-class medieval music performer combined their talents to perform an ancient song for the first time in over 1,000 years. LOS ANGELES, CA (Catholic Online) - The music, titled "Songs of Consolation," was performed for the first time on ... continue reading


What's 'Hijab Day' and why is it causing a 'FREAK OUT' in France? Watch

Image of French students held a Hijab Day to raise awareness of discrimination against women (Styles Glamor).

By Kenya Sinclair (CALIFORNIA NETWORK)

Students from the French university Sciences Po Paris held a Hijab Day to raise awareness of the discrimination and verbal abuse Muslim women face every day - and it went exactly how you might expect. LOS ANGELES, CA (Catholic Online) - With the influx of Muslim ... continue reading


MASS TOURIST ATTACK: ISIS to plant bombs in Europe's most popular beaches Watch

Image of ISIS threatens popular beach resorts (Express).

By Kenya Sinclair (CALIFORNIA NETWORK)

German and Italian intelligence agencies discovered ISIS' plan to pose as refugees to detonate bombs and suicide vests buried beneath lounge chairs across Spanish, French and Italian beaches this summer. LOS ANGELES, CA (Catholic Online) - According to the Mirror, ... continue reading


Norwegian mass murderer Anders Breivik wins human rights case. See the 'inhumanity' of Norway's prison system (PHOTOS) Watch

Image of Breivik has won a case that his solitary confinement and other conditions of his imprisonment are 'inhumane.'

By David Drudge (CALIFORNIA NETWORK)

The conditions that Norwegian mass murderer Anders Behring Breivik have been subjected to are inhumane, according to a Norwegian court. Breivik was convicted of killing 77, and injured 319. Many of his victims were children. LOS ANGELES, CA (California Network) - Life ... continue reading


Why is the Trevi Fountain being dyed blood red? Watch

Image of

By CNA/EWTN News

On April 29, the Trevi Fountain, one of the most popular and emblematic tourist spots in Rome, will be dyed red in recognition of all Christians who even today give their life for the faith.  Rome, Italy (CNA/EWTN News) - The event is being organized by Aid to the ... continue reading


'No Muslim leader has done what he has done:' Pope Francis returns to Vatican with 12 migrants Watch

Image of Pope Francis returned from Greece with twelve migrants (EPA).

By Kenya Sinclair (CALIFORNIA NETWORK)

Pope Francis traveled to Lesbos, Greece, to speak on behalf of the thousands of migrants streaming into the small island. When the pontiff departed back to Rome, he did so with twelve migrants in tow and has offered them a safe haven at the Vatican. LOS ANGELES, CA ... continue reading


Pope Francis in Lesbos - The Pope joins other churches to call for prayer and humanitarian aid Watch

Image of Pope Francis visits Lesbos to speak on behalf of the refugees (Guardian).

By CNA/EWTN News

Forced migration affects millions of people and is "a crisis of humanity." That is what Pope Francis and two leading Greek Orthodox churchmen have said in a joint declaration signed on the Greek island of Lesbos. Lesbos, Greece (CNA/EWTN News) - "Europe today faces one ... continue reading


All Europe News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Acts 15:22-31
22 Then the apostles and elders, with the whole church, decided to choose ... Read More

Psalm, Psalms 57:8-9, 10-12
8 Awake, my glory, awake, lyre and harp, that I may awake the ... Read More

Gospel, John 15:12-17
12 This is my commandment: love one another, as I have loved ... Read More

Saint of the Day

Saint of the Day for April 29th, 2016 Image

St. Catherine of Siena
April 29: St. Catherine of Siena was born during the ... Read More