Greek Prime Minister Alexis Tsipras more-or-less pointed to what’s expected to be the next “tug-of-war” between his leftist government and institutional creditors in talks to conclude a second review of the Greek program (third bailout) come September: labor sector reforms.
“An attack on the primary (monthly) wage scale and work-related rights is a slippery slope that leads to a downward competitiveness, with a downgrading of production,” he told an audience at an Economist conference taking place at an Athens seaside resort.
According to recent reports by “N”, institutional lenders will push for up to 15 reforms in Greece’s labor laws and work-related framework, including laws governing union rights dating back decades.
In outlining what is expected to be his government’s defense, Tsipras said “growth cannot be based on an obliteration of labor”.
The numbers he threw out during an address were an absolute figure of 25 billion euros in fewer wages paid out since 2009 and a slump in demand by 53 billion euros, as he said.
He also repeated the latest catchphrases unveiled by his government in the wake of the conclusion of the first review of the Greek program, promising “viable, fair growth” and saying that the most recent austerity package passed by his government “fairly divided the burdens of fiscal adjustment”.
Without going into details, he also said that economic growth in recession-battered Greece will not be impeded by debt servicing, and that a memorandum-mandated reform package is based on the “particular characteristics of the economy, one that answers the country’s urgent needs.”
