Tagsausterity

Greece cuts minimum wage as austerity drive begins

By George Georgiopoulos 28/02/12
Greek ministers agreed deep cuts to the minimum wage on Tuesday, slashing living standards for low-paid workers as Athens began implementing measures demanded by international lenders in return for a 130 billion euro rescue package.Cabinet approved the cuts, which will hit workers already struggling after more than four years of deep recession, as it signed off on a series of steps agreed in principle by parliament last week, a government official said.The move, which will pass into law without the need for further parliamentary approval, imposes a 22-per cent cut on the standard minimum monthly wage of 751 euros. For those under 25, the cut will be even more brutal, a 32-per cent reduction... 5 comments

French Socialists dig in heels on EU austerity

By Catherine Bremer 22/02/12
The French Socialists' abstention in a parliamentary vote on Europe's future bailout fund has provided new fodder for concern among EU-watchers about how a possible left-wing presidential election victory would affect the eurozone crisis.The Socialist Party, whose candidate Francois Hollande leads opinion polls for the April-May election, sat out Tuesday's lower house vote to create a permanent European Stability Mechanism (ESM) in protest at austerity policies in Europe.President Nicolas Sarkozy's conservative government called the move a "historic error" and berated the Socialists in parliament on Wednesday... 1 comment

Europe seals new Greek bailout to avert default

By Annika Breidthardt and Jan Strupczewski 21/02/12
 Eurozone finance ministers today sealed a €130-billion bailout for Greece to avert a chaotic default in March after persuading private bondholders to take greater losses and Athens to commit to deep cuts. After 13 hours of talks, ministers finalised measures to cut Greece's debt to 120.5 per cent of gross domestic product by 2020, a fraction above the target, to secure its second rescue in less than two years and meet a bond repayment next month... 10 comments
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