Thursday, January 20, 2011

Greek government promotes professions liberalization draft bill amidst new round of protests

The Greek government voiced determination on Wednesday to continue bold structural reforms, such as the liberalization of professions, in order to lift Greece out of an acute debt crisis, despite continuous reactions by labor unions.

"The draft bill on the opening up of so-called closed professions represents a historic change in the benefit of society, since it guarantees new business and growth opportunities which boost the competitiveness of our country," stressed Greek Prime Minister George Papandreou, chairing a cabinet meeting on Wednesday afternoon.

"We will continue to the right path. We will not calculate the political cost," added Greek Finance Minister George Papaconstantinou, as lawyers and pharmacists launched a three-day strike on Wednesday, warning with more to come in the following weeks.

The draft bill on the opening up of up to 160 closed professions was one of the main topics on the agenda, as the government speeds up changes ahead of the next inspection of Greek finances in February by International Monetary Fund (IMF) and European Union auditors.

Facing bankruptcy due to a budget deficit amounting to 15.4 percent of GDP in 2009 Greece resorted to IMF and European partners last May. The euro-zone member country secured a 110- billion euro (148.4 billion U.S. dollars) aid package to be released over a three-year period in order to overcome the crisis.

In exchange Athens pledged the implementation of a harsh austerity and reform program which is still met with strong objections by labor unions.

The ratification of the draft bill on the liberalization of professions which for decades are practiced in a controlled licensing context with fixed profit margins, is one of the key targets Greece should have met by end February in order to secure the fourth tranche of EU-IMF funds in March 2011.

EU-IMF auditors return to Athens later in January to check the progress made since last November on the implementation of necessary changes, while labor unions step up pressure through a new round of protests and strikes.

Unionists say that they fight to protect good quality and low cost services for ordinary citizens, claiming that the opening up of closed professions will lead to the "elimination of offices and stores".

Insisting that on the contrary the bill boosts competition in the benefit of citizens, Papaconstantinou ordered an opinion poll on the issue to hear what is the view of Greek people.

In the mean time employees of mass public transport services, doctors of state hospitals and other civil servants continue work stoppages and protests this week, rejecting the government's plans to restructure the loss- making transport sector, reform the health system and other structural reforms scheduled for 2011.

The umbrella union of Greek civil servants ADEDY has called for a 24-hour general strike on February 10 over austerity measures and reforms, arguing that low and middle income households " cannot afford more burdens".


Source: Xinhua