Identifier
Created
Classification
Origin
08ATHENS441
2008-03-21 12:23:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Athens
Cable title:
SOCIAL SECURITY REFORM BILL PASSES IN PARLIAMENT
how-toVZCZCXRO1367 PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHTH #0441/01 0811223 ZNR UUUUU ZZH P 211223Z MAR 08 FM AMEMBASSY ATHENS TO RUEHC/SECSTATE WASHDC PRIORITY 1512 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 ATHENS 000441
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL ELAB ECON SOCI GR
SUBJECT: SOCIAL SECURITY REFORM BILL PASSES IN PARLIAMENT
REF: A) ATHENS 433
B) ATHENS 400
SENSITIVE BUT UNCLASSIFIED -- PROTECT ACCORDINGLY
-------
SUMMARY
-------
UNCLAS SECTION 01 OF 02 ATHENS 000441
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL ELAB ECON SOCI GR
SUBJECT: SOCIAL SECURITY REFORM BILL PASSES IN PARLIAMENT
REF: A) ATHENS 433
B) ATHENS 400
SENSITIVE BUT UNCLASSIFIED -- PROTECT ACCORDINGLY
--------------
SUMMARY
--------------
1. (U) Greece's parliament approved its government-
sponsored pension reform bill late Thursday, March 20,
after weeks of protests and strikes by labor unions. The
bill passed in its proposed form with 151 votes in favor
and 13 against. Major opposition party PASOK and far-right
LA.OS walked out of the Parliamentary session before the
vote. Although the Coalition of the Radical Left (SYRIZA)
called for a referendum in a last-ditch attempt to keep the
bill from reaching presidential signature, it ultimately
lacked the minimum 180 votes necessary to call a
referendum. Unions announced their intent to launch a
legal battle against the reforms - this is unlikely to
yield results. Some unions are also promising additional
strikes. Having exhausted all reasonable avenues of
dissent, a final vote will be cast today, March 21,
cementing the controversial bill to law. End Summary.
--------------
in favor from conservative MPs and
one independent, and 13 MPs from the leftist coalition
against. All other parties abstained, including the main
socialist opposition PASOK. PASOK and far-right Popular
Orthodox Rally (LA.OS) MPs pointedly walked out of the
session following debate. Meanwhile, riot police deployed
in front of the Parliament in response to rock-throwing and
attacks on police.
--------------
SYRIZA Calls for Referendum
--------------
3. (U) Opposition parties attempted to delay the bill
hours before the vote by gathering signatures to force a
referendum; a tactical move to keep bill from reaching
presidential signature. After the reform bill passed,
SYRIZA group leader Alekos Alavanos tabled a motion to
invoke Article 44 of the Constitution, the article that
provides for referendums in cases of draft laws that
regulate major social issues. Although PASOK and LA.OS
supported Alavanos, the opposition group lacked the minimum
180 votes. The parliament did, however, agree to hold a
discussion on the referendum next week, a move which
allowed the vote to continue and the bill to be approved.
--------------
Opposition and Union Reaction
--------------
4. (U) Typical party rhetoric dominated pre-vote
discussion. PASOK party leader George Papandreou accused
the government of "authoritarian logic" and of "slipping
towards undemocratic means against working people." While
promising that his party will abolish this law when it
comes to power, he said the reform "is a mine in the
foundations of social cohesion." SYRIZA leader Alavanos
asserted that Prime Minister Costas Karamanlis was a
"ghost" and a "puppet in the hands of communication
specialists." The debate in Parliament was characterized
by even more fiery rhetoric than usual, with the Chairman
unsuccessfully seeking to gavel down several impassioned
opposition speakers. Meanwhile, Labor Minister Fani Palli-
Petralia described the bill as "a great social security
reform," adding she was proud to be the Minister of "this
great reform in the social security sector."
5. (U) Unions announced preparations for "guerrilla
warfare" against the pension law with court action in
Greece, and the General Confederation of Workers of Greece
(GSEE) expressed support for a "legislative referendum in
which the unions will play a leading role, to enable the
Greek people to express themselves on this extremely
crucial social issue, the social security issue." Several
unions have also threatened to maintain strikes against the
law, although they have provided no further specifics.
ATHENS 00000441 002 OF 002
--------------
Comment
--------------
6. (SBU) Greece is one of several European Union countries
facing a pension crisis due to an ageing population.
According to experts, if left unchanged, Greece's pension
funds' actuarial deficits could reach close to twice the
country's GDP; furthermore, the current social security
system is widely considered fragmented, wasteful and
mismanaged. Passage of this bill was one of Prime Minister
Karamanlis' highest priorities. He has successfully
achieved his objective, maintaining party discipline
notwithstanding a one-vote majority in the parliament,
despite deep popular discontent, as demonstrated by the
weeks of strikes and protests. End Comment.
SPECKHARD
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL ELAB ECON SOCI GR
SUBJECT: SOCIAL SECURITY REFORM BILL PASSES IN PARLIAMENT
REF: A) ATHENS 433
B) ATHENS 400
SENSITIVE BUT UNCLASSIFIED -- PROTECT ACCORDINGLY
--------------
SUMMARY
--------------
1. (U) Greece's parliament approved its government-
sponsored pension reform bill late Thursday, March 20,
after weeks of protests and strikes by labor unions. The
bill passed in its proposed form with 151 votes in favor
and 13 against. Major opposition party PASOK and far-right
LA.OS walked out of the Parliamentary session before the
vote. Although the Coalition of the Radical Left (SYRIZA)
called for a referendum in a last-ditch attempt to keep the
bill from reaching presidential signature, it ultimately
lacked the minimum 180 votes necessary to call a
referendum. Unions announced their intent to launch a
legal battle against the reforms - this is unlikely to
yield results. Some unions are also promising additional
strikes. Having exhausted all reasonable avenues of
dissent, a final vote will be cast today, March 21,
cementing the controversial bill to law. End Summary.
--------------
in favor from conservative MPs and
one independent, and 13 MPs from the leftist coalition
against. All other parties abstained, including the main
socialist opposition PASOK. PASOK and far-right Popular
Orthodox Rally (LA.OS) MPs pointedly walked out of the
session following debate. Meanwhile, riot police deployed
in front of the Parliament in response to rock-throwing and
attacks on police.
--------------
SYRIZA Calls for Referendum
--------------
3. (U) Opposition parties attempted to delay the bill
hours before the vote by gathering signatures to force a
referendum; a tactical move to keep bill from reaching
presidential signature. After the reform bill passed,
SYRIZA group leader Alekos Alavanos tabled a motion to
invoke Article 44 of the Constitution, the article that
provides for referendums in cases of draft laws that
regulate major social issues. Although PASOK and LA.OS
supported Alavanos, the opposition group lacked the minimum
180 votes. The parliament did, however, agree to hold a
discussion on the referendum next week, a move which
allowed the vote to continue and the bill to be approved.
--------------
Opposition and Union Reaction
--------------
4. (U) Typical party rhetoric dominated pre-vote
discussion. PASOK party leader George Papandreou accused
the government of "authoritarian logic" and of "slipping
towards undemocratic means against working people." While
promising that his party will abolish this law when it
comes to power, he said the reform "is a mine in the
foundations of social cohesion." SYRIZA leader Alavanos
asserted that Prime Minister Costas Karamanlis was a
"ghost" and a "puppet in the hands of communication
specialists." The debate in Parliament was characterized
by even more fiery rhetoric than usual, with the Chairman
unsuccessfully seeking to gavel down several impassioned
opposition speakers. Meanwhile, Labor Minister Fani Palli-
Petralia described the bill as "a great social security
reform," adding she was proud to be the Minister of "this
great reform in the social security sector."
5. (U) Unions announced preparations for "guerrilla
warfare" against the pension law with court action in
Greece, and the General Confederation of Workers of Greece
(GSEE) expressed support for a "legislative referendum in
which the unions will play a leading role, to enable the
Greek people to express themselves on this extremely
crucial social issue, the social security issue." Several
unions have also threatened to maintain strikes against the
law, although they have provided no further specifics.
ATHENS 00000441 002 OF 002
--------------
Comment
--------------
6. (SBU) Greece is one of several European Union countries
facing a pension crisis due to an ageing population.
According to experts, if left unchanged, Greece's pension
funds' actuarial deficits could reach close to twice the
country's GDP; furthermore, the current social security
system is widely considered fragmented, wasteful and
mismanaged. Passage of this bill was one of Prime Minister
Karamanlis' highest priorities. He has successfully
achieved his objective, maintaining party discipline
notwithstanding a one-vote majority in the parliament,
despite deep popular discontent, as demonstrated by the
weeks of strikes and protests. End Comment.
SPECKHARD