Greece approved a series of austerity measures In parliament on Wednesday when Members of Parliament (MPs) voted on the austerity measures including layoffs, job and salary cuts. The passage of the new bill on the same week that German finance minister Schauble visited led to a series of protests.
The Athens government has tried to dissuade the protesters and calm their anger, by saying that only wages will be reduce temporarily, rather than permanent lay-offs. The Greek news source Kathimerini reported:
¨In various statements to the media, government officials sought to appease fears of impending layoffs. Public Order Minister Nikos Dendias told Skai that the aim was for all municipal police officers to be re-posted within the ranks of the Greek Police force.¨ It quoted an unnamed EU official warning that the rest of the eurozone must decide by the end of September how to find more money for Greece, with up to €10 billion needed.
The European Commission moved swiftly to deny the report, with spokesman Simon O’Connor telling reporters that: ¨The program for Greece is fully funded for the coming 12 months, so there is no financing gap for the coming 12 months. Beyond on that, the existence of a relatively small financing gap in the final months of the European financial stabilization fund EFSF-funded program is not new. The existence of a relatively small gap has been known.¨