Greece

[jquest63]

Interesting Information:

Since the crisis in Greece has hit the headlines there have appeared in the bourgeois media many stories about how Greece has too many civil servants, how the working week is very short, how people retire early on fat pensions, and so on, as if this were the cause of the crisis. Facts and figures, however, can be very stubborn things and they tell a completely different story.

During the last few days we have witnessed an unprecedented smear campaign against the Greek working class by the European bourgeois media, in particular by the tabloid press, which is specifically aimed at working class people. This campaign is aimed at deceiving the European workers and its objective is clearly to prevent them from assuming internationalist action of class solidarity towards the working class of Greece, which is being brutally attacked by both Greek and foreign capitalists.

The first myth being promoted in this campaign goes more or less like this: “these lazy Greek people, who constantly go on strike without any reason, then come running to the Europeans to finance their own laziness”.

The rank-and-file of the European Left and of the workers’ movement internationally must be told the truth, but unfortunately this will not be forthcoming from the main media outlets. Let us look at some facts. According to Eurostat, Greek workers work on average longer hours than the rest of Europeans. They work a 42-hour week, while the average working week in the 27 member states of the EU is 40.3 hours and within in the “Eurozone” it is 40 hours. So that is myth number one dispelled.

Again, according to Eurostat, Greece also has the most underpaid private sector employees compared to the rest of the “Eurozone”. In Greece, the average gross monthly wage, including social security and taxes, is 803 euros [about £700 or US$1063], while the lowest gross salary in, for example, Ireland is 1300 euros, in France 1250 euros and in the Netherlands 1400 euros. So myth number two doesn’t stand up to any serious analysis of the real figures.

Another idea being bandied about is that if it were not for the EU and the IMF stepping in and imposing strict measures, the Greeks would have happily continued to live on ever-increasing wages. However, according to the Labour Institution of the GSEE [the Greek general confederation of private sector unions], the austerity programmes already imposed by recent governments in Greece even before the current crisis had erupted had already cut the real average wage in the private sector to 1984 levels.

What about the age of retirement and pension levels? If we were to believe the bourgeois media Greeks live in a kind of workers’ paradise, where they can all retire early and nice big pensions. Again, facts and figures are stubborn things and they give a completely different picture. The average age of retirement in Greece is 61.4 years, a little higher than the European average of 61.1 years.

And what about these fat Greek pensions? According to the GSEE Labour Institution, the average pension in Greece is 750 euros per months [£650 pounds or US$990], while in Spain this figure reaches 950 euros, in Ireland 1700 euros, in Belgium 2800 euros and in the Netherlands 3200 euros. Moreover, this figure was calculated before the implementation of the new government measures, which increase the age of retirement from 65 to 67 years while at the same time cutting pensions by 30 to 50%.

Furthermore, according to the annual report of the joint GSEE-ADEDY trade union confederations on the economy and employment levels in 2009, of the current four and a half million labour force, more than a million work without any social security or other forms of legal protection. According to the report of the Commission for Social Security, established by the Greek Ministry of Labour, this figure reaches 30% of the overall workforce, while in the rest of the EU the percentage of workers in these conditions are only between 5 and 10% of the total.

And whose fault is that? Contributions are supposed to be calculated by the bosses, who pay a part themselves and the remainder is paid by the workers out of their wages. But that would mean declaring the workers legally and paying taxes on the profits made. The bosses prefer to hire a sizeable number of workers illegally, in the “black economy”, and thus save on both taxes due to the state and contributions. If the bosses had paid all taxes due in recent years, and if they had paid what they are supposed to pay into social security funds, the situation would not be anywhere as bad as it is today. It is the Greek capitalists and the foreign investors who have profited from this situation. But who are they blaming? The Greek workers and poor, of course!

On top of all this, in Greece there is also the phenomenon of around 300,000 “false self-employed workers”. These are workers who have in reality been forced to set themselves up as self-employed. In reality they work for a boss who can freely assign the manner, the time, the place of work, and the working conditions and thus this form of working is essentially employment by a boss, but with the added advantage that he can sack them whenever he wants, as formally he is the workers’ “client”. Bosses prefer this method of employment because these workers are not treated legally as employees; they don’t have the same legal rights as the rest of the working class, such as monthly salaries, paid holidays, etc. Employers can fire them freely, even without any compensation. We must also add to the list the 200,000 “part-time” employees, most of whom work full-time but are being paid half-time.

In the smear campaign, there have been many reports concerning the supposedly “excessive” number of civil servants in Greece. According to reports of the ILO (International Labour Organization), civil servants in Greece represent 22.3% of the total workforce, while in France the percentage is 30%, in Sweden 34%, in the Netherlands 27%, in the UK 20% and finally, in Germany 14%. So we can see that Greece is actually below the average. The most important fact, however, that has to be borne in mind is that 300,000 of the public sector employees are working under temporary contracts, which means they have far lower wages and much fewer rights.

Instead of civil servants’ wages going up in recent years, we have seen the opposite phenomenon. As a result of the constant cuts carried out since 1990, according to an ADEDY report [the civil servants trade union confederation], the total real income of civil servants has fallen by 30%. During recent years, governments have preferred to grant “allowances” to civil servants instead of real wage increases. These allowances have neither been included in the annual pay rises nor are they taken into account when calculating pension levels upon retirement.

The bourgeois propaganda also continues to attacking the so-called “13th and 14th month’s salary”, in an attempt to create the impression that Greek workers enjoy higher wages than their European counterparts. In reality, these extra “salaries” are bonuses for Christmas (the 13th salary), Easter and allowances (14th salary), which were given separately as a method of fragmenting total annual income, in order to facilitate commercial and tourist growth during “peak periods” (i.e. holiday periods), in a country whose economy is based mainly on commerce and tourism. With the new recent measures taken by the government, civil servants and pensioners lose both of these salaries. What must also be noted is that all the wage levels, all the facts and figures about the Greek workers’ wages listed above include these extra “salaries”.

The myth of the “opulent” Greek workers is ultimately destroyed if we look at the massive increase in the cost of living in Greece. While the wages and salaries are among the lowest in the Eurozone, the prices of basic goods keep soaring. Let us take a look at a few examples. In Greece a packet of cereals costs on average 2.86 euros, while the same packet costs 1.89 euros in the UK (51% cheaper than in Greece) and in France 2.25 euros (27% cheaper). Greeks buy a toothbrush for 3.74 euros while in the UK the same toothbrush is sold for 2.46 euros (52% cheaper). A pack of soft drinks that costs 3.1 euros in Greece, costs 2.76 in Belgium, 2.3 in France and 2.68 in UK. The most prominent examples are a cup of coffee or tea: in Greece the average price is between 3 and 3.5 euros, more than twice the average in most European countries.

Of course, during the same period, there are some Greeks that could be accused of living in opulence, indeed at record levels, compared to both Europe and globally. But these are not to be found among the Greek working class. During the first half of the past decade Greek capitalists were constantly in the three top places in the league table of profitability globally, while Greek bankers even now are enjoying the highest rates of interest in Europe. This is not by chance. Their profits have been based on the fact that they had at their disposal a workforce that has been on some of the lowest wages in Europe. Added to that they had a sizeable section of this workforce employed in the “black economy”, where they were able to save huge sums on taxes and social security contributions.

Link to entire post

http://nextyearcountrynews.blogspot.com/20...ek-workers.html

[El Presidente]

Nice up to date wrap up on Greece stats here https://www.cia.gov/library/publications/th...ok/geos/gr.html

Key issue is Debt to GDP which is unsustainable and the reason for the current calamity. In essence too much Spending not enough Revenue.

Spending is not so much a problem when done on infrastructure (Singapore and a lesser example Japan). Big problem otherwise...Zimbabwe.

[jquest63]

Nice up to date wrap up on Greece stats here https://www.cia.gov/library/publications/th...ok/geos/gr.html

Key issue is Debt to GDP which is unsustainable and the reason for the current calamity. In essence too much Spending not enough Revenue.

Spending is not so much a problem when done on infrastructure (Singapore and a lesser example Japan). Big problem otherwise...Zimbabwe.

Agreed: Debt to GDP is unsustainable under current conditions, but not the sole reason IMHO.

[El Presidente]

The good news is that it is only about $34 Billion out of whack annually on a $108 Billion dollar economy.

I think they have got it arse way about in the austerity measures which will reduce it below a $100 Billion dollar economy. Reform the taxation system and stimulate the economy simultaneously.

[jquest63]

I think they have got it arse way about in the austerity measures which will reduce it below a $100 Billion dollar economy. Reform the taxation system and stimulate the economy simultaneously.

Agreed: Greek workers will be hammered unjustly with current austerity measures. Tax system reform, economic stimulation and dramatic reduction in corruption should right the ship.

[Nino]

Interesting to follow up on the information about the bourgeois "smear campaign" against greek workers.

At least here in Germany there is no such thing, the debate here is about the greek political classes, the corruption in the country (giving fakelaki/"envelopes"), the falsifying of data by the greek governments to enter the Eurozone, the huge percentage of public workers, the almost non-existing tax collection system, etc. etc. the blame is on the governments, present and past, but it has never been on "the worker" - people here feel that it is precisely "the worker" who will pay the broken plates there.

And being of spanish origin I read the spanish papers daily where all I can find is solidarity with the greek situation as they know well they are the next domino to fall.

But a bourgeois smear campaign against the greek worker ?? Turning up in a "Saskatchewan Socialist Blog" ?? And it originates from "Marxistiki Foni", a marxist/leninist forum http://www.marxismos.com/

My friend in Saloniki is shaking his head at this "smear campaign" argument.

Wonder if they have read the news that all that BS political ideology finally collapsed 20 years ago and the walls came down.

My personal feeling is for the greek "everydayman", he will have to pay the bill.

Nino

PS : I think that this comment by RedRum further up sums it up :

the other day, on the TV, one member of the Greek communist part said that he does not accept the constitution or the law, he thinks that the law is what is right for the workers. It is exactly this psychotic/delusional warped sense of reality that led to this tragedy...

[RedRum]

Nino, great post, I am a big follower of your website and travels!

jquest63 post is indeed very informative. Truth lies somewhere in between. There was a "smear campaign" from media that had ties with the hedge funds that would make money out of a possible Greek bankruptcy. On the other hand Greece has some serious structural and institutional flaws, I have explained them before.

Unfortunately, since the need for cuts is immediate (we need to pay our loan payment in a week, 9 billion euros...), everyone who works in the public sector is immediately affected, as it is the easiest and fastest way to make cuts.

The left and far left in Greece have proven unfortunately, to be an opportunist bunch of incompetent power mongers. Nothing constructive.

I am still shocked by the sacrifice of those 4 innocent people, I still think it is one of the saddest moments of modern Greek history.

[Nino]

Nino, great post, I am a big follower of your website and travels!

Efgaristo - Regrettably my visits to Greece ( both Athens and the islands ) were long before I started my blog ..... but I have good greek friends and an open invitation to Saloniki :-)

The left and far left in Greece have proven unfortunately, to be an opportunist bunch of incompetent power mongers. Nothing constructive.

Same here in Germany - we suddenly had to "adopt" a country with 18 million people (East Germany) due to the great socialist "art" of bankrupting countries. And we have been paying 120 billion Euros a year for the reconstruction of that country ever since. The "solidarity tax (which is 8% of my salary) is still on and I guess will be for ages.

BTW : The Euro is the price that Germany paid for the re-unification with East Germany as the Europeans feared that a single Germany would become too big and dominant. Bye Bye Deutsche Mark.

I am still shocked by the sacrifice of those 4 innocent people, I still think it is one of the saddest moments of modern Greek history.

That is the real tragedy, for the employees, for their families, for the national psyche. A trauma.

Wishing you and the greek people all the best.

[Omskakas]

I heard someone say that Mugabe should get a Nobel Prize in economics for world leading ideas of money printing.

Seriously, this is going to end bad.

[khomeinist]

nino sez 'Wonder if they have read the news that all that BS political ideology finally collapsed 20 years ago and the walls came down'.

Lol. Is that what anti-capitalist rhetoric is called these days? The 'end of history' has not arrived. The crises of the past several years point to this clear observation.

I dislike blow-hard rhetoric from either side of the political spectrum. But the institutionalized global capitalism that the left attempts to address is a noble enough pursuit.

walls came down eh? I see them all over the place. remove the crust from your eyes... (insert emoticon)

lol. best regards

[Danashan]

nino, please save your breath. You need not convince anyone with a modicum of reason.

The rivers of blood and tears spilled by fascists, communists and others of their ilk will not deter fanatics, but I think, will only feed their thirst for power. The price will always be payed by regular people trying to leave their lives for the sake of their loved ones, whose interests the blood suckers always claim to fight for. Always a power trip and a power grab. Its up to us to not let the criminally insane turn our world into another nightmare.

[jquest63]

Interesting to follow up on the information about the bourgeois "smear campaign" against greek workers.

At least here in Germany there is no such thing, the debate here is about the greek political classes, the corruption in the country (giving fakelaki/"envelopes"), the falsifying of data by the greek governments to enter the Eurozone, the huge percentage of public workers, the almost non-existing tax collection system, etc. etc. the blame is on the governments, present and past, but it has never been on "the worker" - people here feel that it is precisely "the worker" who will pay the broken plates there.

And being of spanish origin I read the spanish papers daily where all I can find is solidarity with the greek situation as they know well they are the next domino to fall.

But a bourgeois smear campaign against the greek worker ?? Turning up in a "Saskatchewan Socialist Blog" ?? And it originates from "Marxistiki Foni", a marxist/leninist forum http://www.marxismos.com/

My friend in Saloniki is shaking his head at this "smear campaign" argument.

Wonder if they have read the news that all that BS political ideology finally collapsed 20 years ago and the walls came down.

My personal feeling is for the greek "everydayman", he will have to pay the bill.

Nino

PS : I think that this comment by RedRum further up sums it up :

With respect to the origin of the post, I agree that it's odd to turn up in Saskatchewan Sociatlist blog. It did originate in the Marxist Foni. Did not send link to Marxist Foni, as thought the Saskatchewan link more interesting. Personally, am not a Marxist but found the information in the post interesting. The author blended facts, half truths and lies in shaping their agenda. RedRum was keen to point out the smear campaign (I noticed the same thing), as it related to hedge funds speculators.

Good to hear that debate in Germany is more constructive than the usual tabloid garbage, because what I see and hear about most in the US and on forums is info from Bild like the following:

http://www.guardian.co.uk/business/2010/ma...eece-papandreou. Didnt know who Bild were before the financial crisis, but evidently they are quite nasty and have a several million circulation.

I truly hope that the individuals responsible for the deaths in the Greek riots are brought to justice.

BTW, enjoy your web site.

[thechenman]

No offense meant to any party, but I think the best option globally would have been for Greece to default or to restructure its debt. Regardless of the option pursued, the Greek people will suffer. It is a shame, it truly is, but the country does need serious political and economic reform.

[Nino]

Good to hear that debate in Germany is more constructive than the usual tabloid garbage, because what I see and hear about most in the US and on forums is info from Bild like the following:

http://www.guardian.co.uk/business/2010/ma...eece-papandreou. Didnt know who Bild were before the financial crisis, but evidently they are quite nasty and have a several million circulation.

Believe me, you don't want to know "Bild" - but it is the paper with the most circulation and influence on the german "masses", schock, blood and **** plus sports. I read your link and found it to be moderate for what they usually write, very mellow.

You should read their headlines ( and wash your hands afterwards ).

About Greece selling islands : Been there before - Believe it or not, several years ago "Bild" started a campaign to "integrate" the island of Mallorca into Germany as a german state - and some german politicians even wanted to pursue the idea. And just because the spanish island has a big german population ..........

Brainless garbage, but makes headlines.

Mostly debate in Germany is tough, honest but civil and tends to be constructive.

[Chaki]

No offense meant to any party, but I think the best option globally would have been for Greece to default or to restructure its debt. Regardless of the option pursued, the Greek people will suffer. It is a shame, it truly is, but the country does need serious political and economic reform.

What I have been saying all along. They will make the right decision eventually after having tried all the other ones.

BTW: when one is willing to hold Greek debt, one is an investor, but when does not want it anymore, one becomes a speculator?

Again, I have no particular sympathy for hedge funds, but blaming them for all the ills of Greece? A bit too easy

[RedRum]

Chaki, please my friend read what I have written so far... Greece has great problems. huge public sector, tax evasion, overspending, corruption.The previous government in 5 years ballooned the deficit from 160b to 300b!! Greece did not have a deficit problem 5 years ago, it was still a high deficit of 5-6%, but it was only 60% of GDP. now the deficit is 300b and 120% of GDP!!!

Nino would know that even german papers talk about the "Hiding prime minister who ruined Greece"...

http://www.handelsblatt.com/politik/intern...ucht-ab;2578137

before someone telling me that I have a political agenda blaming the previous prime minister, let me just say that I voted for him in 2004...

Of course Greece is to blame. But it is a fact that the hedge funds went on a betting rampage against the greek economy, is is officially estimated that 30-40b of products are on bet for Greece defaulting. And that is an official estimate, as there are products that are indirectly associated with a greek default.

Of course media related to the banks and hedge funds went on a smear campaign.

I understand the sentiment of "why we should pay for the Greeks!? Let them default". But what is happening to Greece shows how easy it is for a prospering country, with all it faults, to turn into a disaster with a combination of bad government and market pressure. How can such a small economy, only 2% of the EU GDP have such a bad effect on the whole worlds economies, even Obama having concerns. It is obvious that things are more complicated than just another small county going bust...

[thechenman]

Chaki, please my friend read what I have written so far... Greece has great problems. huge public sector, tax evasion, overspending, corruption.The previous government in 5 years ballooned the deficit from 160b to 300b!! Greece did not have a deficit problem 5 years ago, it was still a high deficit of 5-6%, but it was only 60% of GDP. now the deficit is 300b and 120% of GDP!!!

Nino would know that even german papers talk about the "Hiding prime minister who ruined Greece"...

http://www.handelsblatt.com/politik/intern...ucht-ab;2578137

before someone telling me that I have a political agenda blaming the previous prime minister, let me just say that I voted for him in 2004...

Of course Greece is to blame. But it is a fact that the hedge funds went on a betting rampage against the greek economy, is is officially estimated that 30-40b of products are on bet for Greece defaulting. And that is an official estimate, as there are products that are indirectly associated with a greek default.

Of course media related to the banks and hedge funds went on a smear campaign.

I understand the sentiment of "why we should pay for the Greeks!? Let them default". But what is happening to Greece shows how easy it is for a prospering country, with all it faults, to turn into a disaster with a combination of bad government and market pressure. How can such a small economy, only 2% of the EU GDP have such a bad effect on the whole worlds economies, even Obama having concerns. It is obvious that things are more complicated than just another small county going bust...

It's more than just Greece, it is the other PIIGS countries as well. Combined they make up more than just 2% of GDP. The other issue also is where does the money come from for the bailouts when the other members of the EU are already struggling on their own to stay afloat.