Shock therapy for Greece

[Hannah Bell]

Under orders from the European Union, the Greek government plans to announce a “shock therapy” budget next month aimed at reducing the country’s soaring budget deficit. Papandreous’ declaration that in the course of the next three months his government will implement measures which have been postponed for decades puts his regime on a collision course with the working class...

In order to meet the dictates of the European Union, the government is intent on reducing the budget deficit to 7 percent in 2011, 5 percent in 2012 and under three percent in 2013. Papandreou has already announced that he intends to slash public expenditure by around 10 percent. In addition he plans to go ahead with the privatization of state-owned enterprises, radically cut pension provisions and wipe out a large number of public service jobs. He has further announced a freeze on public service workers’ salaries...

In Greece, a quarter of the work force is employed in the public sector and the anticipated job cuts will run into the tens, if not hundreds, of thousands....

It is, however, only the most immediately threatened of a number of Eurozone states that are plunging into bankruptcy as a result of the world economic crisis and the massive indebtedness assumed by governments to bail out their banking systems. Greece is just “the tip of the iceberg,” said Norbert Barthle, budget spokesman for the ruling Christian Democratic Union of Germany...

http://www.wsws.org/articles/2009/dec2009/gree-d17.shtml

[JCMach1]

1. The government will fall then or there will be revolution.

Over 1/2 of the population is in Athens and will not put up with this. This makes change of this type dead easy.

Only question, will they stay in the EU?

[Goldstein1984]

2. "Greece is just 'the tip of the iceberg'".

How many people believe the "recession" isn't going to get worse?

Governments have propped up businesses that are "too big to fail."

What are they doing for the unemployed? The underemployed? The people being parasitized to bail out businesses?

What Greece needs is a nice war to employ their young people and stimulate manufacturing.

Don't we have a war or two to spare?

[necso]

3. "Austerity" for the working-classes is the future for many.

But the situation is rather different for those in a position to profit.

Cruelest dream...

[KakistocracyHater]

4. well this worked SO WELL for Russia........no, wait-it was a disaster! Why

follow a recipe for disaster? Leave the E.U. Destroying society in general for the wealthiest to gain even more.......is insane. Jail them! Sever the banks as extortionists, restart State-owned banks. Safety is in public ownership, death & disaster waits for those who privatize-look at Enron, they care ONLY about making money, & using short term quackery to get it.

[AllentownJake]

5. So who wants to take bets on EU troops in Europe when there is a populist uprising

The beautiful thing about the Soviet Union was it forced the fuckers to behave a little better at the top in our own society.

[malaise]

6. Ours was announced yesterday afternoon as a holiday

gift from the worst government in our history.
http://www.jamaica-gleaner.com/gleaner/20091218/lead/lead1.html
<snip>
"Not unless we are going to start identifying which school we should shut down, which hospital and clinics we are going to close, which government department that might be providing vital services to people we are going to take out ... we are faced with a situation where there is no alternative," the prime minister added.

Shaw said the $21.8-billion package was "intended to enhance the Government's revenue and curtail the fiscal deficit".

Effective New Year's Day, the standard rate for general consumption tax (GCT) will be increased from 16.5 per cent to 17.5 per cent, a move which Government says will yield $3.6 billion.

But not only will the rate of GCT be increased as the Government has brought all basic food items - with the exception of rice and counter flour - into the GCT base.

Food items such as salt, syrup, cooking oil, noodle soups, meat, ground provisions, sardines, bread, buns, bullas, eggs and sugar are now subject to GCT.

Persons paying for undertaking services will also have to pay GCT on burial, cremation and items such as coffins.