Greece unions, youth in streets protest slashed wages & services

By G. Dunkel

Dec 23, 2010

Tens of thousands of workers in Greece took to the streets Dec. 15 to protest the drastic austerity measures the Greek government has imposed on them, under pressure from the banks that loaned money to cover its financial crisis.

Some 80,000 workers marched on the parliament building in Athens, where they confronted the cops. Some demonstrators confronted Kostis Hatzidakis, a former conservative minister of transportation, as he left the parliament building, yelling, “Thieves! Shame on you!” (L’Express, Dec. 15)

Students protesting in Thessaloniki in memory of Alexis Grigoropoulos, who was killed by police two years ago.

Blood running down his face, Hatzidakis managed to escape into another building. The cops arrested a dozen people and injured three, while making liberal use of tear gas, according to many media reports.

The slogans of the demonstrators were directed at the European Union and the International Monetary Fund, which put together the loan package, and at the wage cuts parliament proposed. Under the recent law, private employers are allowed to cut wages up to 35 percent, and public employees can have their wages cut by 15 percent. Layoffs and strict salary caps, which prevent workers from using overtime to maintain their income, are also allowed.

However, it doesn’t appear likely that these wage and benefit cuts will resolve Greece’s financial crisis. Greece’s public external debt is $405.7 billion, which is 113 percent of its gross domestic product. Its exports are $18.64 billion and its imports are $61.47 billion. (CIA World Fact Book)

The cuts in wages and pensions and in government spending on things like roads and ports will not cut the deficit enough to pay off the banks. According to The Economist, the cuts will put Greece into a deeper recession, reducing its GDP and making it more difficult to pay its debt.

Caught between the demands of the EU and the IMF on one hand and the anger of its people on the other, the Greek government made its choice — go with the banks. Whether or not this saves the Euro for the bankers, this choice will continue to arouse struggle among workers in Greece.