Greek Labor Minister and Troika Meeting Ends Without Deal

The second meeting between the inspectors for the country’s international creditors and Greek Labor Minister Yiannis Vroutis, held earlier on Tuesday in Athens, ended without a decision being reached. According to a high-ranking official of the ministry, the negotiations are ongoing as the two sides seek a compromise on the topic brought by the minister regarding the right of employers to order mass layoffs easier and to reduce the size of their employees’ social security contributions. “There was an open and lively discussion,” said a senior Greek Labor Ministry official after the meeting, adding that the issues discussed are not closed yet and that “the objective is to find a common path.” According to reports, the two sides have agreed to the application of the measure concerning the social security contributions by next summer. There are contradicting opinions though, as to the precise application of it and to the funding gap that will occur for insurance organizations in Greece. As for the collective layoffs, the troika is calling for abolishing the veto right exercised by the Labor Minister, while the Ministry believes that the matter may be resolved without any legislative intervention after an agreement has been reached at the Supreme Labor Council. The troika is also due to meet on Tuesday with Development Minister Kostis Hatzidakis and Health Minister Adonis Georgiadis, to discuss progress on a series of proposals outlined for Greece in a recent report by the Organization for Economic Cooperation and Development, known as “the Toolkit.” Marathon talks between governmental officials and the troika over the weekend made progress in some areas but the two sides remained far from an agreement, sources indicated on Monday, stressing however, that the goal remained to reach a deal before next Monday’s Eurogroup summit.

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