Thousands of disgruntled Greeks are taking to the streets in a two day protest against new austerity measures demanded by Greek creditors as a condition for receiving bailout money. If the money does not come through Greek could be bankrupt by March.
Yesterday reports were that party leaders had agreed to austerity measures demanded by the Troika. Today the deal is in limbo. Led by unions Greek workers are demanding that the deal not go through. The measures have reduced the minimum wage by 22 per cent and cut 20 per cent of government jobs. This is all to make Greece more competitive i.e. more attractive to investors.
Creditors complain that Greece has not yet met all demands made. The government has been given until the middle of next week to meet all the demands. This assumes that the government can even survive until the middle of next week. Workers are trying to make sure that the country cannot function.
Most public services are disrupted. There are no railway or other public transport services operating. Hospitals are on a skeleton staff. As well as cuts to government jobs and the minimum wage pensions are also cut and there are reductions in spending on health and social security. Even military spending has been cut!
Unemployment is a 21 per cent and the Greek economy is in its fifth year of recession. The cure, more cuts. For more see this article.