Greece approves sweeping public sector cuts

[PeterCriss]

Greece approves sweeping public sector cuts

Greece's parliament has narrowly approved a sweeping bill of reforms, including cuts to the public sector that will see thousands of people lose their jobs.

Overall, Greece must redeploy 25,000 civil servants and fire another 4,000 by the end of the year.

By Our Foreign Staff
12:25AM BST 18 Jul 2013

The reforms that had caused days of protests passed by a majority of 153 to 140.

Under the cuts, thousands of civil servants including teachers and municipal police will have eight months to find new posts elsewhere or accept those offered to them. Otherwise, they would lose their jobs.

The vote was the first major test for Prime Minister Antonis Samaras's two-party coalition since losing an ally over the abrupt shutdown of the state broadcaster last month, which left it with a slim five-seat majority in the 300-seat parliament.

Hundreds of protesters had gathered outside parliament for the late-night vote, one day after thousands had demonstrated in a general strike called against the reform package.

About 4,200 state staff are already due to be redeployed by the end of July.

Overall, Greece must redeploy 25,000 civil servants - mainly police officers and teachers - and fire another 4,000 by the end of the year.

The main opposition Syriza leftists have called the measure "human sacrifice" and said the country's creditors were motivated by "hatred" for demanding it.

Mr Samaras defended the unpopular measure, promising "better days" for Greeks as he announced a 10-per cent drop in restaurant sales tax to boost the tourist season.

"Better days will come for our people," he said in a televised address hours before the vote.

"We will not let up. We will climb uphill and reach the end, which is not far."

The reforms are tied to the country’s next tranche of EU-IMF loans.