Sunday, May 8, 2016

Greece: Parliament passes controversial pension reform – The Point

The Greek Parliament adopted – majority against opposition – a pension reform, but controversially claimed by the EU and IMF creditors, a few hours of an important meeting in Brussels of the Eurogroup on Greece.

after two days of debate, the 153 members of the government majority, composed of the Syriza left and Anel sovereignist party, voted in the night from Sunday to Monday in favor of the law entitled ” a unified system of social security, reform of the pension system and regulations of the income tax. “

the other 143 deputies present in the Chamber, all members of the opposition, including the right New Democracy, have voted against it, opposed by unions and provides for the reduction of the highest pensions, merge multiple insurance funds, the increase in contributions, taxes and taxation especially for medium and high incomes.

the legislation recasting the pension system, which was demanded by creditors –UE FMI– country in exchange for new aid plan signed last July, caused a union mobilization since Friday and many events.

the leftist government of Alexis Tsipras, who has maintained during this critical vote cohesion of its parliamentary majority, albeit small, hope the adoption of this reform before the meeting Monday in Brussels, finance ministers of the eurozone (Eurogroup) will help to finally open the debate on the thorny issue of debt settlement.

this meeting extraordinary occurs while the reforms demanded in return for massive financial aid to the summer of 2015 have still not received satisfecit creditors (EU and IMF) after ten months of discussions, which blocks any new payment.

the pension reform is therefore part of the logic of the government’s efforts to align with the requirements of the creditors who demand savings of 5.4 billion euros by 2018.

– ‘a very important day’ –

Greece is “almost reached” the objectives of the reforms desired by its creditors and the Eurogroup will carry out “initial discussions” on a possible development of the debt of the country, said President of the European Commission Jean-Claude Juncker in an interview published Sunday in Germany.

Mr. Juncker, however, recalled that an outright debt reduction is not the order of the day.

Mr. Tsipras welcomed the debt was on the agenda of the Eurogroup. “Tomorrow is a very important day. After six years (crisis) Eurogroup will meet to discuss the alleviation of debt,” he said before the Assembly Sunday evening, just before the vote at midnight.

But his main political rival, Kyriakos Mitsotakis, the leader of New Democracy, accused the government of “disability” and has blamed “the delays (in negotiations creditors). ”

He asked “the departure of left government power and early elections for Greece avoids applying new measures” rigorously.

Mr. Tsipras responded that “the pension system required a radical reform than the previous government had not dared to do.”

The passage of the law has caused the mobilization of trade unions and a general strike on Friday and Saturday with mostly affected transportation.

The boats docked them will stay until Tuesday. No sea link is made between the Greek mainland and islands since Friday.

A total of 26,000 people according to police demonstrated on Sunday in Athens and Thessaloniki (north).

Sunday evening around the Parliament in Syntagma square in Athens brief incidents between a group of youths and police who fired tear gas, according to AFP photographers.

However, the mobilization was less than in the last big demonstration against this reform, February 4, where 50,000 people demonstrated which 40,000 in Athens.

Between the end of holidays Easter and “the desperation of people” who are “tired and disappointed by the government of the left”, the mobilization was lower than expected, lamented to AFP Maria, a fifties who showed Sunday.

05/09/2016 4:14:37 – Athens (AFP) – AFP © 2016

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