Agreement reached on the next tranche of the bailout loan
Greek Finance Minister, Yannis Stournaras
Greece to fire 4,000 civil servants
Greece will receive the next tranche of the bailout loan, after reaching an agreement with the troika that foresees firing thousands of civil servants. The review by delegates from the International Monetary Fund, European Commission and European Central Bank (also known as the troika) said that targets for March "are likely to be met in the near future." Consequently, Greece will get the 2.8 billion euros tranche that has been delayed since last month.
As IMF's troika representative Poul Thomsen stated: "Greece has indeed come a very long way. The fiscal adjustment in Greece has been exceptional by any standard." He also added that if the country proceeds with the implementation of the necessary reforms, it will achieve its overall budget targets without imposing any further austerity measures.
In addition, the troika predicts Greece will return to growth gradually in 2014 and that it will improve its wage flexibility thus, restoring its competitiveness.
Regarding the firing of civil employees, the review said: “(Firings are) targeted at disciplinary cases and cases of demonstrated incapacity, absenteeism, and poor performance, or that result from closure or mergers of government entities."
According to reports, about 4,000 civil servants are to be dismissed by the end of this year, and 11,000 by the end of 2014. The dismissed employees would be from public organizations that are shut down or merged and those who are found guilty of breaching the code of conduct. Another 25,000 civil servants will be transferred to departments where there is a shortage of staff.
Greek Finance Minister Yannis Stournaras, stressed that capable employees will replace those that have been underperforming in the public sector.
Greece has been receiving financial aid since 2010. In total, it has been granted 270 billion euros in bailouts. However, the country remains in deep recession and unemployment has reached 27%. europe on line
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