Even as the ECB’s very own Mario Draghi is now peddling Greek deal rumors, which are essentially a reaffirmation that the country will “pledge” to return to GDP growth in 2013, we are already seeing real, not pledged, or promised, consequences of this deal, whether real or not (ignoring that Venizelos just said that it would actually take up to 15 days to finalize it, something which means the Greek exchange offer is DOA) namely that the crippling economic collapse discussed extensively on these pages is about to get far worse. AP reports: “Angry union leaders announced a 48-hour general strike for Friday and Saturday.” “We are moving to a social uprising,” said ADEDY Secretary Genera Iliopoulos.” Surely this is the fastest shortcut for Greece to meet or beat expectations of halting the 10% drop in its GDP and convert that number to positive. One can only hope that makers of bulletproof vests can compensate the economic collapse as every other part of the economy shuts down.
The unions, General confederation of Workers of Greece (GSEE) and Civil Servants Supreme Administrative Council (ADEDY), announced on Thursday that their members will go on a two-day strike from Friday in protest at the controversial decision.
“We will hold a general strike on Friday and Saturday along with the civil servants’ union,” said a spokeswoman with GSEE which represents the private sector.
ADEDY’s Secretary General Ilias Iliopoulos described the measures as “painful” which will “create misery for youths, unemployed and pensioners do not leave us much room.”
“We are moving to a social uprising,” said Iliopoulos.
Greece has been the scene of repeated strikes since the country first resorted to bailouts from international lenders in 2010.
Leaders of the three parties backing Greece’s coalition government approved new austerity measures on Wednesday but failed to agree to creditors’ demands to make 300 million euros ($398 million) in pension cuts.
The country’s Prime Minister Lucas Papademos still hopes that the coalition leaders will strike a comprehensive deal by Thursday evening, his office said on Wednesday.
To secure a bailout package of 130 billion euros, Athens must first persuade the troika — the European Union (EU), International Monetary Fund (IMF), and the European Central Bank (ECB) — that it will implement long-delayed reforms and make further spending cuts.
Greece’s current debt stands at 340 billion euros ($440 billion) — a sum that equals around 31,000 euros debt per person in the country of 11 million people.
The country has, accordingly, the biggest debt burden in proportion to the size of its economy in the entire 17-nation eurozone.
This post originally appeared at Zero Hedge and is posted with permission.
6 Responses to “Greece Responds to Troika Deal with Immediate Two Day Strike, Threatens with “Social Uprising””
The world has to realize that Greece is in its 5th year of hard recession. Unemployment is at 20.5%, more than 5000 people get laid off EVERY DAY and the austerity measures of the EU and the IMF are driving the economy in death spiral.
With such conditions its only normal that people will uprise. And so far the majority of Greeks have not taken the anger on the streets. Only the "usual suspects" are uprising. A few thousand socialist "union dogs" and some 16yo hooligans who dont know any better.
Greece needs urgently help, because with such austerity measures it wont hold for much longer. Even huge corporations like the phone or power company will collapse in less than a year (trust me on this one).
And if the Greek domino falls, then the world-domino to follow. Starting from the periphery and crossing the Atlantic. Are we really ready for such a scenario?
I think its pretty obvious that Europe is pushing Greece out of the euro and into the abyss. Otherwise i cant explain the new austerity measures on top of the already hard measures that they have been enforced.
this recipe is chocking the Greek economy faster than anyone can realize. Since the IMF took over, unemployment (in two years) jumped from 10% to 20.4% (official figure).
5000 people are being laid-off per day (!!!) and even cornerstone companies like the phone company or the power and lights company are having a hard time paying salaries.
Greece has (maximum) one to two months of life (if so).
If Europe doesnt do something quick, prepare for the fall of the first domino which will trigger the rest of the shaky periphery dominoes. That will be the start of a very messy divorce between the PIIGS and the euro-core that will doom the world economy for the next 3 years and it will bring america a huge step closer to its debt problem nightmare.
Greece is standing on the edge of the cliff and they are very much thinking of jumping. I really dont know if the situation is irreversable at this point.
It is better to jump, leave the Eurozone to rejoin the human race! The Eurozone has become the arm-pit of the world economy run by a bunch of crackpot ideologues pushing a Ponzi debt pyramid on the Periphery countries.
Greece will do a lot better over the long run outside of the Eurozone, with a big proviso that there is new and serious political leadership, who honestly want to deal with the structural issues.
Hoping that survival instincts outside of the Eurozone will compel this.
I totally agree Diran.
EU leaders are a bunch of crackpot bureucratic ideologues pushing a debt pyramid to the periphery.
Finally its obvious that Europe wasnt "built" for the benefit of the 27, but for the benefit of Germany.
The rest of the euro-leaders are acting as puppets and obviously decisions arent made in Brussels anymore but in an office in Frankfurt.
Germany is acting very very irresponsibly
The contagion danger is a myth since July 2011. Check out the progress of Greek, Portuguese and Irish cost of debt since then. The debt market has already differentiated Greece as a special case.
I remember Athens 20 years ago. It was a big village without proper roads, with small Seat cars (the cheapest at that time) standing in big traffic jumps, without proper public traffic and people obviously living below the average European standard . 20 years later Athens looks like any other modern city in Europe, with shops selling the most expensive brands, big cars rolling the well developed roads, etc. Do not tell me they have financed it all from the income they received for olives (the only export item Greece exports). So to the question what to do, my answer is to do!!!!