The Greek
government is currently discussing the “necessity” of an additional (additional,
additional, additional) cut in pensions and salaries, for the “good” of the
country’s financial health, for the good
of the debtors, for the ”reduction” of the debt and for a “return” to growth...(loud applause!)
The coalition’s
negotiations don't seem to have gone as well as expected, since Fotis Kouvelis,
the leader of the Democratic Left party which obtained 17 seats in Parliament during
the recent elections, has announced his refusal to reduce low salaries and
pensions. There is no risk, however, of the parliamentary vote not being
adopted as long as PASOK stays true to its previous policies - which it subsequently
passed on to its longtime enemy, the New Democracy party of Samaras. Together ND
and PASOK already hold the majority, and Venizelos declared today:
“Of
course there will be further cuts and sacrifices, but they will be fair.”
Note the
use of the term “fair”. Cue (another) round
of applause! It seems that nothing changes in Parliament.
All the
same, these discussions provide a good opportunity to review the pension cuts
that have been made since the Troïka’s arrival in 2010 and the establishment of
the Mordorandum*:
an utter folly
·
Start of the hostilities in 2010 with the suppression of the 13th and 14th pension installments, which had
been transformed into one payment of
400€ at Christmas and two payments of 200€ for Easter and Summer
·
In August 2010, six months later,
pensions above 1400€
were reduced between 3% and 14%. Note that this decision was taken during the holidays.
·
The third round of reductions came in September 2011. Those pensioners
receiving more than 1700€ had to endure reductions of between 6% and 10% which
were imposed upon them.
·
Two months later, it was even worse: those under 55 years old lost 40%
of that part of their pensions exceeding 1000€. The elder (above 55 years old) lost
20% of the corresponding amount.
The next set of measures is likely to be savage:
·
Reductions of 10 – 30% of the lump sum (a sum towards which national
insurance contributions are paid as for the pension, but which is paid out in a
single lump sum at the cessation of activity) for 23 pension funds. The
reduction is likely to be as much as 40% for some funds.
·
A
contribution of 1% of the amount of the pension for all those who have already received
their lump sum. This contribution will obviously be established independently of
the level of the pension and other cuts. This measure is likely to concern
around 800 000 workers.
·
The
plan being looked at by the Government would reduce all pensions which are above 600 or 700 Euros. The reduction for the lowest
pension revenues is expected to be around 1 to 2%. For a pension close to 1000€
there is likely to be a cut of 5%, while for a pension of 2000€ the reduction would
be by as much as 20%. For pensions above 2000€ the rate will increase, and a
ceiling may be introduced (the talk is of 2500€).
·
Pensions
from the OGA (the pension funds for
farmers) could also be reduced
·
An additional levy will be instituted on complementary retirement incomes
above 400€. A
reduction of 8 to 12% is being discussed when the income does not exceed 1000€,
and of 15- 20% beyond that.
·
The
unified pay scale will be extended to public utility state-run enterprises (DEKO),
which means reductions in salaries of up to 35% (!)
·
Benefits
as well as pensions paid to single women will be reduced.
Not to
mention of course the fusion and privatization of around fifty public
organizations, the dismissal of 150 000 workers between now and 2015 etc.,
etc., etc., etc.
The farcical
electoral pledges that were made (“We will renegotiate with Europe”, “We understand
that the people have had enough of austerity”, blah, blah..) risk leaving a
bitter taste of treason in the mouth of the population.
The holidaymakers
are coming back, Athens is filling back up once again and the first strike has
started: that of Athens’ municipal workers. The refuse collectors have indeed
attempted to strike this morning but without success: the riot police were
waiting calmly to destroy any semblance of demonstration.
After this
summer’s incredible heat wave in Athens, the destruction of the social fabric
continues its deadly march.
* ‘Mordorandum’,
term first used by Zoe Mavroudi, actress and writer, to designate the ‘Memorandum’
which refers to Tolkien’s Modor in ‘Lord
of the Rings’, and associations with the idea of ‘death’.