Enough austerity? Greece after 5 years of belt tightening
"...1. “In five years in Greece, we have cut pensions by 44
percent, reduced private sector pay by 32 percent, destroyed the
job market, smashed the welfare state, bled employees and the
middle class dry with taxes, and reached one and a half million
unemployed in a country with an active population of six
million,” Alexis Tsipras said in an interview with Corriere della, an Italian
newspaper Corriere della Sera...."
Published time: July 03, 2015 05:38
Reuters / Yiannis Liakos
The EU and its financial institutions have been
pushing an austerity policy on Greece for the last five years. High
unemployment, more taxes, billions of euros fleeing, and an increase in
suicides mean Greeks on Sunday have to decide if enough is enough.
What happened?
In January, the left-wing Syriza party led by Prime Minister
Alexis Tsipras promised to end years of austerity measures
without leaving the eurozone.
What went wrong?
Greek debt negotiations have been fruitless for five months.
Creditors wanted economic reforms in return for bailout money,
but Syriza refused to budge on key election promises.
RT shows you what has happened to the Greek economy during the
era of austerity.
A
banner hangs in front of the parliament during a pro-government rally
calling on Greece's European and International Monetary creditors to
soften their stance in the cash-for-reforms talks in Athens, June 17,
2015. (Reuters / Yannis Behrakis)
1. “
In five years in Greece, we have cut pensions by 44
percent, reduced private sector pay by 32 percent, destroyed the
job market, smashed the welfare state, bled employees and the
middle class dry with taxes, and reached one and a half million
unemployed in a country with an active population of six
million,” Alexis Tsipras said in an
interview with Corriere della, an Italian
newspaper Corriere della Sera.
2. Greek GDP per capita has fallen to $21,700 in 2014 from
$26,900 in 2010 in current US dollars,
World Bank data suggests.
Efi
Larentzaki (bottom C), an unemployed mother of four, takes part with
three of her children in an anti-austerity pro-government demonstration
in front of the parliament in Athens February 15, 2015. (Reuters /
Yannis Behrakis )
3. Youth unemployment has reached more than 50 percent. Around 55
percent of those unemployed are under 35, according to UK
entrepreneurship charity Endeavour.
Pensioners
struggle to enter a National Bank branch to receive part of their
pension in Iraklio on the island of Crete, Greece, July 2, 2015.
(Reuters / Stefanos Rapanis )
4. 44.8 percent of Greek pensioners are living below the poverty
line. Their pensions amount to no more than €665 and have been
cut 44-48 percent since 2010.
A
mourner (R) places a Greek flag at the spot where a man committed
suicide at central Syntagma square in Athens, April 5, 2012.(Reuters /
John Kolesidis )
5. The Greek suicide rate jumped 35 percent during the peak of
the crisis in 2011 and 2012. Almost 80 percent of the suicides
were men. Greece’s rate used to be the lowest in Europe, but it
soared during the crisis.
READ MORE: Austerity to blame for 35% suicide
surge in Greece – research
Reuters / Stefan Wermuth
6. The Bank of England has warned that the Greek debt crisis is a
threat to the UK’s financial stability and could trigger wider
problems for financial markets. The market value of European
banks shrunk by more than €50 billion on July 29, when the Greek
government closed banks across the country and limited daily cash
withdrawals to €60.
READ MORE: Greece closes banks, imposes capital
controls