Posted on 02/06/2012 5:54:56 PM PST by Oldeconomybuyer
ATHENS — Despite new evidence of a deteriorating economy, Greece said on Monday that it would cut 15,000 state jobs this year as part of new austerity measures it intends to adopt to secure new debt agreements from international lenders.
ATHENS is racing to push through economic changes that it hopes will persuade its private sector creditors to grant easier debt repayment terms and will prompt Europe to release 130 billion euros, or $171 billion, in the next round of bailout money it needs to avoid defaulting on bond payments due in March.
Negotiations with its creditors were continuing Monday, even as the austerity measures already in place were making it increasingly difficult for the Greek economy to outrun the country’s mounting debt burden.
Greece’s debt rose to 159.1 percent of gross domestic product in the third quarter of 2011, from 138.8 percent a year earlier, according to data released Monday by Eurostat, the European Union’s statistical agency.
That rising debt ratio, if it continues, will make it hard for Greece to meet the 120 percent level for the year 2020 that is one of the targets for Greece’s European bailout program.
Under its new prime minister, Lucas D. Papademos, an economist and former vice president at the European Central Bank, the Greek government has promised to cut 150,000 jobs by 2015 from the public sector, which employs an estimated 750,000 people.
In that context, the 15,000 cuts announced Monday would be only a relatively small step toward the eventual target.
(Excerpt) Read more at nytimes.com ...
Hey, The Iron Lady was right, the socialists finally ran out of other people’s money, I just hope war isn’t the end result.
2% can be handled through natural attrition.
No, no they're not.
Despite?
Mass cutting of the government is about the only way they can save themselves.
“Greece to Eliminate 15,000 Government Jobs
No, no they’re not.”
They will; they will use attrition via retirement, in a program that will span 1,000 years./s
“would cut 15,000 state jobs”
And they all retire or go on unemployment at 75%? 90%? of their salary with free medical.
Greece is going to cut 15,000 government jobs? Now who’s going to see if they’re using fabric bags at the Albertsons down on 35th and Main in Athens?
“...Despite new evidence of a deteriorating economy, Greece said on Monday that it would cut 15,000 state jobs this year...”
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The sentence makes no sense to me.
DESPITE new evidence of a deteriorating economy???
Does the author believe a deteriorating economy is a reason to keep and grow government jobs???
Yes, yes he does. About a week or two ago, when the growth for the economy for the U.S. for the fourth quarter came out (2.3% annual rate, I believe), they blamed the somewhat disappointing number on cuts in government spending. To which I had two reactions: 1)I guess economic growth depends on increases in government spending, and 2) When in the name of Jumped-up Jupiter were there cuts in government spending?
The could cut 150,000 jobs and it wouldn’t help.
That is correct, they plan on cutting them when they die. Same old same old.
Greek government spending needs to go up in the short term.
It’s going to cost quite a bit to make and put up all those new street signs in German.
Which they should have done in 2010,instead of waiting for things to get worse,
I have to step outside of myself to try to comprehend the meaning of most of what the liberals say.
I guess the author is saying:
“the economy is bad; people are out of work; and
this will add 15,000 more people to the roles of the unemployed.”
That is my best interpretation of the substance.
It is a whine. Mommy, this medicine tastes bad.
The government in Greece employs 14% of the total labor force (Per OECD) The total Labor force is 4,972,000 ( per CIA World fact book) i.e. Government employs 696,000 people. Assume Govt workers retire at the national average of 61 and work for the Govt on average 40 years, ignoring year to year demographic fluctuations an average of 17,400 Greek government workers would retire this year, so in effect all the Greeks are doing is freezing Government hiring for a year.
So in the worst financial crisis for Greece since WW II their austerity measure is to freeze govt hiring for a year. For some reason I don't think this is going to work.
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