Monday, May 16, 2011

Greece Won’t Dismiss Civil Servants, Spokesman Petalotis Says

Bloomberg
May 16, 2011

Greece will refrain from firing civil servants in its search for spending cuts, said government spokesman George Petalotis.

“We’re not discussing sacking permanent employees,” said Petalotis, according to an e-mailed transcript of comments to reporters in Athens today. “In any case, there is the constitution, which, to put a stop to this alarmism that’s circulating, ensures the permanence of public servants.”

While Greece has cut pensions and wages to reduce a budget deficit that reached 15.4 percent of gross domestic product in 2009, it hasn’t fired public employees. Finance ministers in Brussels today discussed boosting a 110 billion-euro ($156 billion) bailout from the European Union and the International Monetary Fund, pressing Greece to deepen spending cuts to win an increase in the aid package and more time to repay the loans.

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