Monday, 1 December 2014
Monday, 10 November 2014
*This article is part of a series of profiles published by the United Nations High Commission for Refugees to help highlight the plight of those fleeing war- and famine-torn regions of central Asia, the Middle East and Africa towards Europe.
Tuesday, 14 October 2014
Conservative party MP Adonis Georgiadis blamed the developments on statements by the left wing main opposition party, Syriza. "When the Syriza government comes to renegotiate our loans, which will happen soon, the question of at least a 50 percent writedown of the country's public debt and of repayment of the remaining part on the basis of growth will come up," Yiorgos Stathakis, Syriza's shadow development minister is quoted as having said on Monday.
On the same day, the conservative-led government approached the Eurogroup with a proposal to extricate itself from the International Monetary Fund's adjustment programme at the end of the year, when he Eurozone's period of oversight ends, rather than mid-2016.
Achieving this could remove the opposition's main stick - the country's memorandum of austerity and reform.
The memorandum mandates fiscal austerity, banking reform, economic reform and political transparency, some of which has been carried out, but much of which remains to be done. It has become a symbol of lost sovereignty and social disintegration.
At the same time, the government is trying to negotiate a rescheduling of debt with its Eurozone partners, which would allow it to lower its annual premium and achieve a full budget surplus, not just a primary surplus. Greece achieved a 2.9bn euro primary surplus in 2013, and expects a 6.1bn euro primary surplus this year.
All this is rendered urgent by a looming general election. This is likely by next April, and possibly before. Parliament must elect a new president by the end of March with a three-fifths majority - which is currently beyond the ruling coalition. Failure to do so would trigger an election. Parties are already jostling for alliances and beginning the process of drafting ballots.
The political mixture is as toxic as it was in the last general election in 2012. The government is reform-fatigued and voters are tax-fatigued, so while the country may still be on track to achieve 0.6 percent growth this year, this may no longer be enough to make businesses or taxpayers happy. In fact, the mild rate of improvement may work against the ruling coalition of socialists and conservatives.
The economy is improving fast enough to allow people to feel they can risk a change of government (polls now put Syriza ahead by several points), but not fast enough to feel optimistic about staying the present course (recent polls show that half of Greeks believe the economy and unemployment will worsen, while only about one in ten expects improvement).
The slowness of the recovery is also failing to lift the prospects of the less fortunate, creating a two-tier society. September labour ministry data revealed a marginal rise in unemployment, and that six in ten of the jobs that were created are not full-time. According to the Hellenic Statistical Authority, almost four million people are at risk of poverty or social exclusion - 36 percent of the population. A large proportion the the population cannot eat protein every other day, pay utility bills or own a colour TV.
Friday, 3 October 2014
Monday, 22 September 2014
UN High Commissioner for Human Rights Zeid Ra'ad al-Hussein urged countries to bring the perpetrators to justice. "The callous act of deliberately ramming a boat full of hundreds of defenceless people is a crime that must not go unpunished. If the survivors' accounts are indeed true - and they appear all too credible - we are looking at what amounts to mass murder in the Mediterranean."
Friday, 5 September 2014
"This is a clear indication that public finances are settling into a pattern of primary surpluses, and this creates the basis for growth with social justice," said a statement from deputy finance minister Christos Staikouras on Wednesday.
Expectations are high among portions of the Greek media that Prime Minister Antonis Samaras will make significant policy concessions at his inaugural speech to the Thessaloniki International Fair on Saturday morning. The annual speech is traditionally a keynote for Greek prime ministers to foreshadow their economic policy for the year ahead, before the budget is presented to parliament by early October.
Two small concessions have already been made. Public transport tickets fell to 1.2 euros on Monday, down from 1.4 euros. And the government has in principle cleared the way for a reduction in property tax, introduced in August 2011 as an emergency revenue measure.
Further revenue measures introduced during the four-year Greek crisis include a VAT hike from 19 to 23 percent (2010), a 30 percent increase in heating oil (2012) and a solidarity tax amounting to a surcharge on income of between two and five percent (2011).
Samaras has been keen to ease the burden on taxpayers and especially businesses. Last year his government reduced VAT to 13 percent for restaurants and made an abortive attempt to reduce the price of heating oil. In April he announced that small businesses and the self employed will have VAT reimbursed at the end of this year for the first time.
Businesses and the self-employed are obliged to pre-pay 23 percent Value Added Tax on their turnover each month, or face hefty fines of at least 500 euros. In theory, the state reimburses much of that VAT at the end of the year, once businesses and traders have presented expenses in their tax statements. In practice, however, the state has failed to disburse the cash, holding it as credit against future tax obligations and sucking up liquidity.
Last September, during the annual Thessaloniki speech, Samaras said that one of the first goals of his tax policy would be to lower corporate tax rates from 25 percent to 15 percent.