The Greek Parliament passed a new public administration reform bill on Wednesday which paves the way for the state to rehire 3,900 public sector employees. The bill includes several amendments, one of which provides for the transfer of general government entities’ cash reserves to the central Bank of Greece to cover needs and avoid a credit event. However, this decision has raised strong objections from local administration over the past weeks. Furthermore, the new bill also provides for the reinstatement of public sector employees who were dismissed or suspended under previous governments as part of spending cuts and reforms introduced to address the debt crisis, since 2010. SYRIZA party had opposed the public sector lay-offs, noting that they are “unfair, counterproductive and unconstitutional.” After assuming power in the snap elections of January 25, 2015 the SYRIZA-led coalition government promised to rehire public servants, as well as hire another 4,000 people who have passed exams to enter the public sector in recent years. The new public administration reform bill that aims to reinstate public sector employees was passed with 157 votes in the 300-member Greek Parliament, while the amendment on the transfer of cash reserves to the Bank of Greece passed with 153 votes.
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