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Wednesday, February 20, 2013

Greece's weakened workforce starts to crack





ATHENS, Greece (AP) — Looking out across a room full of reporters gathered to welcome French President Francois Hollande on Tuesday, Greece's President Karolos Papoulias gave a stark warning about the state of the country after three harsh years of government spending cuts, joblessness and tax hikes.

Not only are Greece's 1.35 million unemployed unable to make ends meet, but a growing number of those still employed are struggling to feed, heat and clothe themselves — and pay the increasingly hefty taxes the government is relying on to turn the economy around.

Since it was priced out of the international debt markets in 2010, Greece has relied on emergency loans from other eurozone countries and the International Monetary Fund.

The crisis has left 450,000 households with no one working, while a one-year limit on unemployment benefits — and strict rules to qualify for them — mean just 225,000 jobless Greeks are currently receiving monthly state assistance.

According to union researchers, two-thirds of employees in the hammered private sector no longer receive regular pay.

According to government data analyzed by the GSEE, 3.6 million people out of a population of 11 million are working, with 1.6 million employed by private-sector companies — that's down from around 2.5 million before the crisis broke in 2010.

When contacted by the Associated Press, officials the government's powerful new Department of Public Revenue refused to confirm widespread local media reports that 2.5 million tax payers will be sent notices starting next month demanding overdue payments.


READ THE ORIGINAL POST AT www.sfgate.com