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Greek civil servants protest planned reforms, as Euro Group debates release of fresh bailout tranche

08 July 2013 19:41 (UTC +04:00)

Baku-APA. Greek civil servants hit the streets of Athens on Monday afternoon, protesting the planned reforms to streamline public services as part of efforts to overcome the three- year Greek debt crisis, as Euro Group debated in Brussels the release of the next bailout tranche to Greece, APA reports quoting Xinhua.

Thousands protesters participated on Monday in a work stoppage and rally organized by the umbrella union of civil servants ADEDY and municipal employees POE- OTA in the Greek capital, rejecting plans for mass dismissals in civil services, which was the key demand of lenders this time.

Following marathon discussions with the Greek government, the auditors of international creditors paved the way for a positive outcome, announcing on Monday that the review of Greece's adjustment program has ended and an initial deal with Greek officials on a technical level on the conditions of the disbursement of further aid has been reached.

EU/IMF inspectors said in a press release that progress has been made in several sectors; however the economic outlook is "uncertain," Athens still lags on the implementation of some policies, therefore needs to step up efforts to meet targets, reduce deficits and push through the needed reforms to restore growth next year.

As both sides express confidence that Euro Group will give the "green light" for the release of the next installment and IMF will follow shortly so that Greece will cover its financing needs in coming weeks, the planned policies have already sparked reactions in Athens.

In the context of efforts to overhaul the overstaffed public sector the government is asked to fire some 4,000 public servants this year and in addition put extra 12,500 employees in the sector on a "mobility scheme" which foresees their transfer to other posts or leaves on reduced pay with the possibility of redundancy after a year.

According to Greek government sources, the measure concerns mainly municipal police officers, local government employees, teachers and school guards and cleaning staff.

Demonstrators on Monday argued that the wave of dismissals will deteriorate high unemployment rates and deep recession which "already strangle Greek society after three years of austerity".

Greece's government on the other hand, reiterates its commitment to the implementation of the austerity and reform program launched in 2010 under bailout deals in return of EU/IMF bailout financing to avoid bankruptcy and exit the crisis.

An omnibus bill containing all the new measures agreed with lenders is expected to be tabled in the Greek parliament on Tuesday, according to the latest information from government sources.