Samaras optimistic in Berlin
September 23, 2014For now, Antonis Samaras can breathe a sigh of relief. The Greek Prime Minister met with German Chancellor Angela Merkel in Berlin on Tuesday hoping to make his country the third nation, after Ireland and Portugal, to leave the EU and IMF's so-called bailout programs. Merkel's outlook on the matter was largely positive.
"I know what a difficult time the country has been through," the Chancellor said in a in a press conference, adding that "the first tender shoots of success are visible."
The two rescue packages issued to the Hellenic Republic since 2010 amount to 240 billion euros and required Greece to agree to stringent austerity procedures such as high tax hikes and a reform of the pension system. The bailouts appear to be helping, however slightly, and the two leaders agreed that a third will not be necessary.
Yet there are still a few large causes of concern in the Greek economy. When the EU package runs out at the end of this year, Greece's national debt is predicted to increase to 177.2 percent of its annaul economic output (GDP). The EU rules state that a country must not go over 60 percent, though the majority of EU members exceed the target: Germany's own rate currently stands at 76 percent of GDP.
As to the loosening of the strict rules imposed on Greece's budget, the German Chancellor deferred to the authority of the EU Commission.
Continuing unrest
Samaras‘ visit comes as discontent boils over at home. The Civil Servants' Confederation (ADEDY) went on nationwide strike on Tuesday, leaving schools empty, hospitals calling up emergency staff and Athens' public transport disrupted.
The public sector workers are protesting proposed job cuts in a country whose unemployment is already 27 percent. As a stipulation of Greece's loans from the EU and the IMF, Athens is required to adjust salaries in the civil service and fire workers based on performance, something which unions like ADEDY are vehemently against.
News agency DPA reported that thousands of protestors stood outside the Finance Ministry in Athens chanting anti-government slogans, while a further 3,000 protested in the northern city of Thessaloniki.
Holding signs with slogans like "EU, IMF out!" and "No to firings!", protestors associated with the strike were also gathered outside a courthouse deciding the fate of 600 cleaning workers who were fired last year as part of the country's extremely unpopular austerity measures. The workers maintain they were unfairly terminated and demand to be reinstated.
Ultimately, the decision on whether or not to reinstate the cleaners was postponed until February.
es/msh (dpa, Reuters)