SOCIAL SECURITY REFORM BILL PASSES IN PARLIAMENT

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