Let me consider these claims one by one and be absolutely clear and precise: First of all, the IMF/EU program (particularly the EU portion) is no “help” or “aid” or “rescue”, or even “bailout”, as the IMF, the EU and various commentators are saying. It consists of a series of loans, in fact non-concessional loans, as it is clearly stated in the Q&A session of the IMF here, with unprecedented draconian conditionality and the normal interest rate which is charged by the IMF in all cases. As to the EU portion, it is given at an even higher interest rate, which should be turned down by the Greek government. Paying 5-6% interest rate, when the country’s GDP growth is -4% p.a., clearly makes the country’s debt problem unsustainable, as has been shown by several economists. In judging interest rates, it should also be remembered that these loans are senior to all other Greek debt.
Second, it was not offered to help the “Greek people”. It was offered to help the bondholders, the bankers, the euro, and to avoid contagion with its nasty consequences for the EU and the global economy, as it is clearly stated elsewhere in the Q&A session mentioned above.
Third, there is absolutely no “protection for the most vulnerable”, as one would have expected from the “socialist” (or “ex-socialist”?) head of the IMF, or the “socialist” Greek government for that matter, and this claim is made several times in both of the documents mentioned above. The opposite is true. A mere listing of some of the austerity measures will suffice to prove my assertion:
-A meager so-called “social solidarity allowance” for destitute people was abolished, despite assurances in the IMF Q&A session that “the targeting of social expenditures will be revised to strengthen the social safety net for the most vulnerable”.
-Despite assurances in the Q&A session that “minimum pensions and family support instruments will not be cut”,all public and private-sector pensions and allowances have been cut, all the way down to meager pensions of 450, 500, 550 euros per month etc., which are well below the poverty line (making it impossible for old pensioners to survive), and this is what the majority of pensioners receive. This must be reversed for both human and economic reasons. On the other hand, nothing has been changed regarding the 300 Greek MPs, who receive a substantial pension after only 8 yrs in parliament!
-Reduction of the salaries of even the lowest-paid civil servants. The 13th and 14th bonuses, which are often mentioned as a sign of extravagance, should have been incorporated in the 12 monthly salaries, and Greek salaries would still be lower then the EU average. (See comparison of total Greek and EU salaries above.)
-Freezing of the lowest salaries and pensions for the next few years, although inflation is already galloping above 4% p.a., well above the EU average, and may go even higher, despite the IMF claim at the press conference that“inflation is expected to remain below the euro average.”
-VAT (value added tax), which was much higher in Greece than in Portugal and Spain, was raised by about 20% on all goods, including basic foodstuffs, which make up the majority of poor people’s purchases.
-Sales taxes were raised on –supposedly- luxury goods…such as gasoline (+50%), cigarettes, beer, wine etc. I say to the poor people of Greece: For heaven’s sake, don’t drive, and stay away from all these sinful products!
To be fair, according to an interview of Mr. Papaconstantinou, the Greek finance minister, a few days ago, the reduction of the pitiful pensions of the private sector was not imposed by the IMF officials in Athens, but by the EU officials. My guess is that it must have been decided at the insistence of an official appointed to the negotiating team by “Frau Nein”, who wants blood, sweat and tears imposed on the Greek people.
Second, it was not offered to help the “Greek people”. It was offered to help the bondholders, the bankers, the euro, and to avoid contagion with its nasty consequences for the EU and the global economy, as it is clearly stated elsewhere in the Q&A session mentioned above.
Third, there is absolutely no “protection for the most vulnerable”, as one would have expected from the “socialist” (or “ex-socialist”?) head of the IMF, or the “socialist” Greek government for that matter, and this claim is made several times in both of the documents mentioned above. The opposite is true. A mere listing of some of the austerity measures will suffice to prove my assertion:
-A meager so-called “social solidarity allowance” for destitute people was abolished, despite assurances in the IMF Q&A session that “the targeting of social expenditures will be revised to strengthen the social safety net for the most vulnerable”.
-Despite assurances in the Q&A session that “minimum pensions and family support instruments will not be cut”,all public and private-sector pensions and allowances have been cut, all the way down to meager pensions of 450, 500, 550 euros per month etc., which are well below the poverty line (making it impossible for old pensioners to survive), and this is what the majority of pensioners receive. This must be reversed for both human and economic reasons. On the other hand, nothing has been changed regarding the 300 Greek MPs, who receive a substantial pension after only 8 yrs in parliament!
-Reduction of the salaries of even the lowest-paid civil servants. The 13th and 14th bonuses, which are often mentioned as a sign of extravagance, should have been incorporated in the 12 monthly salaries, and Greek salaries would still be lower then the EU average. (See comparison of total Greek and EU salaries above.)
-Freezing of the lowest salaries and pensions for the next few years, although inflation is already galloping above 4% p.a., well above the EU average, and may go even higher, despite the IMF claim at the press conference that“inflation is expected to remain below the euro average.”
-VAT (value added tax), which was much higher in Greece than in Portugal and Spain, was raised by about 20% on all goods, including basic foodstuffs, which make up the majority of poor people’s purchases.
-Sales taxes were raised on –supposedly- luxury goods…such as gasoline (+50%), cigarettes, beer, wine etc. I say to the poor people of Greece: For heaven’s sake, don’t drive, and stay away from all these sinful products!
To be fair, according to an interview of Mr. Papaconstantinou, the Greek finance minister, a few days ago, the reduction of the pitiful pensions of the private sector was not imposed by the IMF officials in Athens, but by the EU officials. My guess is that it must have been decided at the insistence of an official appointed to the negotiating team by “Frau Nein”, who wants blood, sweat and tears imposed on the Greek people.
Read more: http://www.creditwritedowns.com/2010...#ixzz0oMAEzPWO
Andreyou
