The two-day meeting of the Euro Working Group next Wednesday and Thursday us last chance to come to an agreement and at least limit the credit crunch. Whether a modular solution, like Mr. Varoufakis suggests, or any other way, it is imperative to bridge the gap that separates the Greek side from the European creditors.
The government, in its effort to fulfill its obligations toward the creditors, as well as civil servants and pensions, has literally drained very resources, from the banks as well as the reserves of public bodies and enterprises.
As such, we have reached the point where civil servants are being paid normally, but at the cost of financially draining private sector businesses, which have been cut off by all funding. The public sector’s suspension of payments towards the private sector of the economy leads to a suspension of payment of businesses towards their employees. Many businesses already warn that they are unable to pay wages and are considering layoffs.
This situation cannot carry on. The employees in the private sector have the crisis dearly, with wage cuts and terrifying unemployment rated, while being treated once more as second-class citizens. The government’s concern is restricted to its obligations towards the public sector, with the employees in the private sector left to fend for themselves.
The declarations and promises to protect employees and the red lines on contracts and collective dismissals are not enough. A solution for the country’s financing problem is needed, or else we will have to sacrifice the private sector so that the public sector survives. Otherwise, every day that goes by will see the uncertainty among employees in the private sector get worse, while the threat of unemployment and poverty increases.
TO VIMA
