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Greeks wary of ‘worse’ days after bailout
ATHENS, June 20, 2018 (BSS/AFP) – The end to Greece’s third and final multi-
billion bailout, to be set in motion Thursday, is unlikely to provide a
respite from pay cuts and tax hikes, many Greeks fear.
“It’s all false, new measures will come…life is worse and will become
more difficult,” says Constantinos Kavagas, a 24-year-old business graduate
handing out flyers in central Athens.
“I don’t believe them,” adds Vangelis, a 38-year-old navy sailor who
declined to give his surname.
“There will be more cuts. More taxes. I don’t believe the crisis is over.
Things will be worse.”
A meeting of eurozone finance ministers on Thursday is expected to
conclude an audit of Greek reforms and sketch out an ‘enhanced surveillance’
of the Greek economy that will follow the end of the bailout in August.
The European Commission has already specified that Greece will remain
under fiscal supervision until it repays 75 percent of its loans.
Eurozone states and the International Monetary Fund have already lent
Greece over 273 billion euros since the start of the country’s crisis in
2010, according to the European stability mechanism.
The IMF, which cannot agree with the Europeans on the scope of debt
relief necessary for Greece, is expected to withhold any further financial
contributions but could stay on in an advisory capacity.
Kavagas says he had trouble even finding his present employment, which
only pays 520 euros ($603) a month for five hours, seven days of work a week.
“We have to pay more bills, it’s not easy to find work, everything is
more expensive,” he said.
Greece has already agreed to slash pensions again in 2019, and reduce the
tax-free income threshold for millions of people in 2020.
In turn, the government has promised to channel spare funds to benefits
for Greece’s poorest.
After eight years of painful reforms, including wage and pension cuts and
tax hikes, Greece’s economy has stabilised and is expected to post moderate
growth this year.
The leftist government of Prime Minister Alexis Tsipras, which clashed
with the creditors and nearly crashed the country out of the euro in 2015,
has now reached a working arrangement with its creditors.
Greece has pledged to maintain a 3.5-percent primary surplus until 2022,
with further cuts if necessary.
Tsipras has blamed the crisis partly on the corruprion and profligacy of
past Greek governments, saying they fueled economic growth and job creation
through cheap loans.
Without supervision, there is a risk that bad habits will return, says
82-year-old economist Nikolaos Glytsos.
“Personally I like this surveillance because I don’t trust the
politicians to behave in the way they should,” says Glytsos, who is still
actively employed at a private foundation.
“I don’t trust them to have a reasonable or sensible policy,” he adds.
“We have a long history of not learning from our mistakes.”
But there are those who are less gloomy.
“It’s good for us to finish with this situation because it was too hard
for all the citizens of Greece and we hope the (bailout programmes) will
finish,~” said Antonis Vourlias, a 19-year-old physics student.
“I imagine everything will be good, with more money, more jobs, and
everyone will laugh,” he said.
BSS/AFP/RY/1955 hrs