GREEK public sector workers launched a 24-hour national strike yesterday against the SYRIZA (Coalition of the Radical Left)- ANEL coalition government’s new austerity accord as dictated by the EU-ECB troika, which was however opposed by the IMF.
They were joined by local government workers as well as transport and railways workers. In the northern city of Thessaloniki, civil servants occupied the Ministry for Northern Greece. In the capital Athens, SYRIZA trade unionists resisted occupations despite the fact that META (SYRIZA’s trade union faction) had called for a fight to overthrow the austerity accords.
Rallies and demonstrations were organised in all Greek cities and a mass rally was called by ADEDY (Confederation of public sector trade unions) outside the Vouli (Greek parliament) in the evening when the Alexis Tsipras government presented the first Bill implementing the austerity accords. Up to a million trade unionists and youth were expected to take part.
The GSEE (Greek TUC) has refused to support this mobilisation. At a meeting of SYRIZA’s Left Platform deputies on Tuesday night, it was decided that they would vote either against the Bill or abstain. It is estimated that about 30-40 deputies will not support the Bill when it comes before the parliament.
Greek PM Alexis Tsipras has admitted that he does not believe in the deal, though he agreed to it.
In a TV address on Tuesday, Tsipras called the proposals ‘irrational’ but said he was willing to implement them to ‘avoid disaster for the country’ and the collapse of the banks.
Tsipras told National television that he only agreed to the deal with ‘a knife on my neck.’ He added: ‘My priority is to make sure that the choice I made the other day, with a knife at my neck, is finalised.’
The deal includes:
• VAT changes: Top rate of 23% to extend to processed food, restaurants, etc; 13% to cover fresh food, energy bills, water and hotel stays; 6% for medicines and books. VAT discount of 30% to be abolished on islands, but remotest islands to keep discount until next year
• Corporation tax raised from 26 to 29% for small companies
• Luxury tax for big cars, boats and swimming pools up from 10 to 13%; farmers” tax up from 13 to 26%
• Early retirement to end (phased in by 2022); retirement age raised to 67
• Greek statistics authority Elstat to have full legal independence.
