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Europe Daily Bulletin No. 10620
ECONOMY - FINANCE - BUSINESS / (ae) greece

Cohn-Bendit says Greek memorandum must be looked at again

Brussels, 24/05/2012 (Agence Europe) - The Greens/EFA Group in the European Parliament (EP) is convinced that the economic adjustment programme that Greece has to implement in return for international financial aid must be looked at once again in order to give the people of Greece some hope. “The Greek problem” is not about backing or opposing the memorandum of understanding, it is quite simply the future of democracy, said parliamentary group joint leader Daniel Cohn-Bendit (Germany) on Wednesday 23 May. Greek MEP Nikos Chrysogelos said “hope and support have to be given to those who have lost their jobs” as a result of the memorandum. Calling for changes to the Greek programme to make it “fairer from a social point of view”, he asked the European Commission submit a report to the EP.

The Greens suggest pushing back the objectives for reducing the Greek budget deficit by two years, from 2014 to 2016. This would cost €20-30 billion, a sum that the European Stability Mechanism would pick up. In terms of investment, they propose a genuine environmental “new deal” to reduce the energy bill and a total freeze on military spending. To facilitate the launch of definite projects, a new public investment body which would be managed by the EU and the Greek authorities, should be set up. The European “task force” in Greece should also be beefed up, the Greens say.

Wages. Socially, a review of the measures contained in the second bail out is needed. It will have to be determined, in concert with the social partners, “whether we went too far” in wage cuts, Cohn-Bendit argued. He quoted the examples of a teacher of German whose salary was cut abruptly from €1,400 to €700 and of retired people whose pensions have been reduced from €1,100 to €650. He slammed the promise made by the radical Left-wing party Syriza to increase the minimum salary for public sector workers to €1,300. If this is pushed through, Europe will say: “That's it, we're not paying any longer”, Cohn-Bendit said. He asked where the money for these salaries would come from. The people will take to the streets and there will be social unrest, he predicted. “Who then will restore order? There is something of a tradition in Greece”, he added, in reference to the military dictatorship which once ruled the country.

The Greens also take the view that the European Union should assume responsibility for security at the borders between Greece and non-EU countries, the main entry point for illegal immigrants to Europe. A support fund should also be built up to improve asylum policy in Greece, they say. (MB/transl.rt)

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A LOOK BEHIND THE NEWS
ECONOMY - FINANCE - BUSINESS
EUROPEAN PARLIAMENT PLENARY
SECTORAL POLICIES
SOCIAL AFFAIRS
POLITICS - INSTITUTIONAL
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU