The Greek Crisis Cuts The Welfare &Nbsp; The Masses Are Burdened With The Burden Of Going Abroad.

In September 21st, the Greek cabinet announced the new economy. Tighten Policies include reducing the number of employees in state-owned enterprises, reducing retirement benefits and lowering the threshold of personal tax. An official revealed that 30 thousand civil servants will be suspended this year and only a portion of their salaries will be paid. The government will also reduce the monthly pension of more than 1200 euros and the welfare of citizens under 55 years of age.

The Greek government hopes that this will restore the confidence of international creditors and continue to provide financing to avoid debt default. But the Greek people do not buy these measures. In their view, these measures will only add to their hardship.

On the 22 day, tens of thousands of Greek workers poured into the streets of Athens for a general strike to protest against a series of new austerity policies announced by the government. The 24 hour general strike paralyzed many roads in the capital. Greece Nearly 100 flights at the airport were delayed and dozens of flights were cancelled. The Greek people took various measures to defend the crumbling high welfare.

Travel abroad has become an extravagant hope.

Joanna, a Greek citizen, says that in Greece, an ordinary four family needs 1300 euros a month to live. However, the average monthly salary of the Greek population is only 500 euros. At present, prices are high and taxes are various, so it is difficult for the public to shoulder the heavy burden of life.

Joanna is an ordinary Greek citizen. Five of his family live in the northern Greek city of Thessaloniki. Joanna's father is an engineer, his mother runs a wedding shop, and the family conditions are still medium.

However, such a middle-income family is debt Under the influence of the crisis, life has begun to be difficult. Joanna told our reporter recently that after the debt crisis, his father's salary was cut by 1000 euros, and the benefits of his mother's wedding dress shop were getting worse. But they also had to pay 8000 euros of pension and medical insurance each year.

Joanna revealed to reporters a Greek congressman revealed that in Greece, an ordinary four families need 950 euros per month to meet their daily needs. A 75 square meter apartment rented at least 300 euros per month, and the electricity bill is about 45 euros, excluding water and telephone charges. However, the average monthly salary of the Greek population is only 500 euros. Joanna said that now the prices are high and taxes are various, so it is difficult for the public to shoulder the heavy burden of life.

Joanna's neighbor, Demy Cui, is 37 years old. He is a worker in a door and window factory. Before 2009, Demy Cui paid 1200 euros a month, worked 6 days a week and worked 8 hours a day. After the Greek debt crisis broke out, factory efficiency declined, and a large number of layoffs began to be reduced and production time shortened. Now Demy Cui works 5 days a week, working only 5 hours a day, and the salary is reduced to 750 Euros. Demy Cui's wife used to be a barber. He lost his job last year. Now two children are in primary school. The only source of money in the family is Demy's monthly salary. This family is very typical in Greece.

In the past, Demy Cui family traveled abroad every year, but this kind of leisure has become a kind of leisure. Extravagant hopes 。 Because of the rising prices, Demy Cui could not afford to buy the daily necessities of the supermarket. He had to drive 2 hours a month to buy food and clothes in Bulgaria. Demy Cui's two children used to learn foreign languages in training institutions, but now they have to give up. "The government has promised children to take full time education, but because of the fiscal tightening policy, they now only spend half a day learning." Dmitri said.

The government no longer set up new schools, closed nearly 800 campus libraries, and even distributed educational discs to children aged 5 to 18 to replace higher cost books. Demy said angrily, "we don't expect to live in a rich man's day, but now even the chance of children's education is deprived." {page_break}

High welfare overdraft country's future

In Greece, civil servants belong to the "iron rice bowl" with immunity. They will not be fired. "In the past, people would rather be a civil servant in Greece than go to Wall Street."

In contrast to the current predicament, the Greeks lived through "envious" life. It is reported that a Greek ordinary port worker, even the junior technician can earn 3000 to 10000 euros per month. As welfare, they can receive 14 months' salary a year, and they can enjoy the longest 6 weeks' paid vacation each year.

Gioni J, a subway worker who took part in the strike and demonstration in September 22nd, said: "in the past, people preferred to be a civil servant in Greece rather than go to Wall Street." In Greece, civil servants belong to the "iron rice bowl" with immunity. Not only will they not be fired, but if they want to, they will retire at the age of 40 and receive a pension. In addition to wages, civil servants can receive an extra bonus of up to 1300 euros per month. If they have the skills of computers and foreign languages, they can also enjoy extra allowances.

High welfare has laid the foreshadowing for Greece's debt crisis. In 2001, Greece joined the euro, while the German media called Greece the "third world" of the euro area. After joining the euro area, monetary integration led to a rapid rise in Greek prices, and Greece became a short board in the euro area.

In the absence of the level of economic development, the Greek political parties in order to win the support of voters, blindly greet the people, imitating other rich countries, promised high welfare to voters, the government and the people are living a high welfare and high consumption days. According to reports, Greece has 5 credit cards per capita, and people are spending ahead of time. The US media even described the Greek people's lending life by "earning soldiers' wages and passing the emperor's Day". The growth rate of consumption expenditure in the whole country far exceeded the speed of income growth.

In December 11, 2009, the Greek government uncovered the old claims and declared the state's liabilities to be as high as 300 billion euros, the highest record ever recorded. It is said that if 11 million 300 thousand Greek citizens pay for this huge debt, Greece's per capita liabilities will be as high as 26 thousand and 700 euros.

In December 2009, the world's three largest Rating firm, such as Fitch, standard & Poor's and Moodie, lowered Greece's sovereign rating one after another, which led to Greece's financial crisis. The euro fell sharply against the US dollar, and Greece's debt crisis was officially unveiled.

Debt ridden welfare

Greek finance minister Vinnie Ze Ross said: "these measures will inevitably cause resistance, we can not milk cows without feeding."

After the outbreak of the debt crisis, the deeply troubled Greek government began to seek help from the European Union and the International Monetary Fund in the world, and began to tighten expenditure and cut down the welfare policy.

In May 2010, the International Monetary Fund and the European Union decided to lend a helping hand to Greece, but they set out harsh provisions for the reform of the welfare system. The government must restore taxes on high pensions, thirteenth and fourteenth months' pension should not exceed 800 euros, and so on 13 regulations. Greece accepts it all.

In addition, Greece passed the welfare reform bill. The bill stipulates that civil servants are prohibited from raising salaries for at least three years, and severance payments for layoffs will be reduced. The retirement age of women will be the same as that of men, from 62 to 65. If people want to receive full pension after retirement, they must pay 40 years' social security tax. In addition to labor and social security reform, the Greek government has also raised taxes on value-added tax, fuel tax, alcohol and tobacco tax.

In order to achieve the target of reducing the budget of 30 billion euros by 2012, Greece announced a more severe welfare reduction plan in September 21, 2011. The monthly pension will be reduced by 20% if the pension exceeds 1200 euros. The threshold of personal income tax has also been reduced from 8000 euros per year to 5000 euros.

Joanna said that the minimum pension is now only 345 euros a month. She also worked out an account for journalists. In 2008, if a family's annual income was 12 thousand euros, it would not be necessary to pay any taxes and fees. This year, the lower limit of personal income tax has dropped to 5000 euros. If the annual income is 12 thousand euros, it will pay 400 euro tax.

Greek finance minister Evangeras Vinizeros said: "these measures will inevitably cause resistance, we can not milk cows without feeding." {page_break}

Overburdened and left far away from home

Joanna said, "it is generally believed that the Greek economy will not improve in the next 5 years, and social welfare will only get worse and worse. Some friends have already left Greece to find another way out.

The heavy burden of life and the bad economic situation make the Greek people full of doubts about the future. Joanna said with concern: "difficulties have forced people to the edge of life. It is generally believed that the Greek economy will not get better in the next 5 years, and social welfare will only get worse and worse." She said many friends were planning to leave Greece because they could not find jobs at home.

Joanna's friend, Alex, studied graphic design at university. After graduating in December 2010, he could only act as a hotline operator in a private hospital. This is the only job that Erik can find. He has already experienced two pay cuts this year. Eric did not know how long it would last before he was fired. Joanna said, "many people are complaining about the new welfare policy, but they dare not take part in the strike because they are under the pressure of survival, because they are afraid of losing their only job."

6 months ago, Joanna's other friend, a friend of the family, moved to Sweden. At the age of 29, he had 5 Master's degrees and 5 languages. After graduating from his master's degree, he could not find a job in more than five years.

Seeing friends leaving home, Joanna wondered, "if we leave Greece, where do we go from here? Italy, Portugal, Spain, and Germany are all on the edge of the whirlpool, and the people there can't find a job. "

Analysis

Cut high welfare into Europe and America

Experts believe that the European debt crisis is related to high welfare.

As the Greek debt crisis intensified, most countries in Europe and the United States were involved in financial difficulties. Hu Dawei, an associate researcher at China Institute of international studies, believes that the European debt crisis is related to the long-term welfare policy pursued by European and American countries.

The euro zone tightening is slightly more radical.

Hu said that after the financial crisis, public spending in developed countries increased sharply, but only a small part was used to stimulate the economy and save banks. Considerable funds have been used for unemployment relief, social security and other benefits, which has led to a high public debt in Europe.

At present, many European and American countries have begun to cut their budgets and cut benefits. In addition to Greece, countries that currently have pressure on debt problems will go along with the way to cut benefits. The British Chancellor of the exchequer has already taken the initiative to reduce government spending. Although the United States is not doing much reform now, it will be difficult to escape welfare reform sooner or later according to the current trend of debt development.

"But the process of reducing welfare will be very difficult. As the saying goes, from thrift to extravagance and convenience, from extravagance to frugality, we will reduce the benefits, and the political resistance and social rebound will be very strong." Hu Dawei pointed out that if European governments go too far on welfare cuts, they may lose their general election. When dealing with these problems, the government is usually more prudent, but has to cut it down, otherwise it will cause debt to run out of control. For the euro area, the current fiscal tightening policy is slightly more radical. Europe expects to make deficits and debts meet the standards stipulated in the stability and growth covenant within two or three years. The sudden tightening of fiscal measures will suppress the momentum of economic growth without "open source" and debt problems can not be cured. {page_break}

voice

High welfare in Europe and America will not disappear

Hu Dawei believes that the competitiveness of Greece's foreign trade is very weak at present, and the huge increase in foreign trade is unrealistic. Now we can only rely on borrowing to maintain the economy. "Just like a person who is in debt, he does not earn money and pay debts by going out to work, but he can only turn the seller to pay for his property. He has reached the end of his life. Such a practice will bring great political pressure to Greece, which will lead to public demonstrations and social unrest.

Hu emphasized that the basic social security network of developed countries in Europe and the United States is still relatively sound, and the level of welfare may decline, but it will not disappear. Even so, unemployment and welfare decline will still have negative effects on society and psychology.

"The empty victims of the Greek Treasury will not be the bond market, but the employees of the Greek public sector, or the recipients of social welfare. It is only their own governments that need to be accountable to them.