FacebookTwitterGoogle+RedditEmail

As Greece Burns

by TOM GILL

London.

Amid much protest in the streets, the Greek government last night passed a law firing thousands of public sector workers.

Twenty five thousand public servants – mainly teachers and municipal police – will be placed in a layoff scheme by the end of 2013. They have eight months to find another position or get laid off.

Why? According to Reuters, ‘Greece’s public sector is widely seen as oversized, inefficient….’

Lazy journalism, once again. What are the facts? Greece’s public sector may well be relatively inefficient, although there is little reliable data on public sector productivity and the press rarely if ever quote hard evidence. But the charge that it is oversized is nonsense.

The number of state employees in Greece is below the EU average. Indeed, according to the OECD ‘Greece has one of the lowest rates of public employment’ among advanced economies, with general government employing just 7.9% of the total labour force in 2008. Across the OECD area, the share of government employment ranges from 6.7% to 29.3%, with an average of 15%.

This report also notes that compared to other OECD countries, the Greek government spends a much smaller portion of resources on education (8.3% vs. 13.1%), and only some of that is down to a smaller school-age population. So why are teachers targeted for lay-offs?

Of course there is waste in government expenditure. For example, Greece spends large amounts on defence. According to The Guardian, ‘No other area [of spending] has contributed as heavily to the country’s debt mountain. If Athens had cut defence spending to levels similar to other EU states over the past decade, economists claim it would have saved around €150bn – more than its last bailout. Instead, Greece dedicates up to €7bn a year to military expenditure – down from a high of €10bn in 2009.’

Germany, the world’s third largest arms exporter, has been profiting handsomely from a mini- arms race between Greece and Turkey. It also happens to be the ring leader within the EU-European Central Bank-IMF  ‘Troika’ offering international loans to pay this defence debt off – at the price of austerity measures such as these brutal cuts to the public sector workforce.

At a time when the private sector is not hiring but firing, this will add to total unemployment. This in turn will further hit the economy as in Greece which is heavily dependent on household spending – 74% as against 58% for Germany, according to the World Bank 

In short, more misery and self-perpetuating austerity, for a country now in its six year of recession and where unemployment is expected to rise to 28% by the end of next year, according to OECD forecasts published this week.

With help by from the media, the myths perpetuate, and Greece burns.

Tom Gill is a London-based writer and journalist. He blogs at www.revolting-europe.com  on European affairs from a radical left perspective.

More articles by:

Tom Gill edits Revolting Europe.

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

Weekend Edition
July 28, 2017
Friday - Sunday
Diana Johnstone
Collateral Damage: U.S. Sanctions Aimed at Russia Strike Western European Allies
Jim Kavanagh
Donald the Destroyer: Assessing the Trump Effect
Carl Boggs
The Other Side of War: Fury and Repression in St. Louis
Eva Golinger
There is Still Time to Prevent Civil War in Venezuela
Anthony DiMaggio
“A Better Deal”? Dissecting the Democrats’ “Populist” Turn in Rhetoric and Reality
Conn Hallinan
Middle East Chaos
Mumia Abu-Jamal
James Baldwin: Word Warrior
Joshua Frank
The Fire Beneath: Los Angeles is Sitting on a Ticking Time Bomb
Myles Hoenig
It Wasn’t Russia, It was the Green Party!
Andrew Levine
Enter Scaramouche, Stage Right
Brian Cloughley
Time to Get Out of Afghanistan
Gary Leupp
The Trump Revolution Devouring Its Own Children
John Wright
Trump’s Hezbollah Gaff Was No Gaff
Alan Jones
“Finland Station” and the Struggle for Socialism Today
Robert Hunziker
Plastic Chokes the Seas
Eric Draitser
Enough Nonsense! The Left Does Not Collaborate with Fascists
Vijay Prashad
The FBI vs. Comrade Charlie Chaplin
Jane LaTour
Danger! Men Working
Yoav Litvin
The Unbearable Lightness of Counterrevolution
Charles Derber
Universalizing Resistance: How to Trump Trump
Gregory Barrett
Two Johnstones and a Leftish Dilemma: Nationalism vs. Neoliberalism
Joseph Natoli
Choosing the ‘Arteries that Make Money’
CJ Hopkins
Intersectionalist Internet Blues
Pepe Escobar
China and India Torn Between Silk Roads and Cocked Guns
Ralph Nader
Can the World Defend Itself From Omnicide?
Howard Lisnoff
Agape While Waltzing at the Precipice
Musa Al-Gharbi
Want to Shake Up Status Quo? Account for the Default Effect
Angela Kim
North Korean Policy Must Focus on Engagement Not Coercion
Hiroyuki Hamada
Delivering Art in the Empire
David Macaray
Talking Union
Binoy Kampmark
Refugee Conundrums: Resettlement, the UN and the US-Australia Deal
Robert Koehler
Opening Gitmo to the World
David Jaffee
No Safe Space for Student X
Thomas Knapp
The State is at War — With the Future
David Swanson
What’s Missing from Dunkirk Film
Winslow Myers
There Is Still Time, Brother
Robert J. Burrowes
Biological Annihilation on Earth Accelerating
Frederick B. Hudson – Dr. Junis Warren
Robot Scientists Carry Heavy Human Hearts 
Randy Shields
Not My Brother’s Reefer
Sam Lichtman
Where are the Millennials?
Louis Proyect
Death Race: the Cruelties of the Iditarod
Charles R. Larson
Review: Norman Lock’s A Fugitive in Walden Woods
July 27, 2017
Edward Curtin
The Deep State, Now and Then
Melvin Goodman
The Myth of American Exceptionalism
Nozomi Hayase
From Watergate to Russiagate: the Hidden Scandal of American Power
FacebookTwitterGoogle+RedditEmail