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Insurance funds drama in Greece

20 October 2009 / 12:10:47  GRReporter
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“We chose that the social security system should save from its own money and if this succeeds then we will be able to say how we will interfere and when,” said yesterday the minister of labor, competition and social security Andreas Loverdos.

Saving or self-financing will happen when all who hide taxes are chased after and pressed to pay and expenses in healthcare are limited. By the end of the year the government has to find over €1 billion, in order to pay off pensions, bonuses and to deal with the insurance funds. Their incomes for the last few months are in “red” and in comparison to last year, they have fallen with 5%.

Right after that research on the insurance funds will be done and decisions will be made, which will “fix” all injustices in former minister Fani Petralya’s law – mostly the part, which hardens the condition of working mothers.

Except for this, two commissions will be created – one for the Insurance System and one for Labor relations. The first commission will have to write a report before March regarding receiving first pension in three months following retirement, which should happen by the end of 2010. The second commission will submit a report about the necessary measures for limiting the “flexible” labor relations and for control over the “rented workers” phenomenon. One of the hot topics, which will be undertaken by the newly elected government members refers to practical training and internship programs. Discussed is to option to permanently hire all, who work for more than 24 months on low paid positions without social security.

In connection to this during his visit to the Labor Organization minister Loverdos ordered to all employees working on a practical training position in public organizations, to prepare their CVs and to include in them the continuation of their contract with the exact dates.

This way the necessary information can be gathered of who had worked in those organizations for 24 months and whether the political decision must be made to continue their contracts or to hire them permanently. Let us note that for now 4000 interns are working in the insurance funds and they have been doing in for more than 2 years. All together the number of interns in Greece is 40 000 and the number of those working in this position for more than 24 months is unknown. 

Tags: Politics in Greece Healthcare system in Greece Insurance funds Tax evasion in Greece
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