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The union of private-sector employees (GSEE) defined the reduction of interest rates on the financial support and the extension of its payment term as a success achieved by Prime Minister George Papandreou this weekend. This was announced by the union president Yiannis Panagopoulos who spoke at the extraordinary meeting of the organization. "These solutions are positive for Greece and allow it to take a breath and time, but unfortunately they do not solve the fundamental problems of the country. The implementation of strict economic policies and structural reforms inspired by liberalism."

He said the French-German plan for reform of the European Union, which is expected to come into effect after the summit on March 25^th this year would create extremely difficult conditions for the maintenance of previously established social rights of employees both in public and in private sectors across Europe. He called the new rules for competitiveness an "iron suit" which not only Greece but other countries should pull on although it would not fit them.  

Panagopoulos defined the issues arising with the change in retirement age and social benefits both in Greece and other eurozone countries as crucial. Another problem, according to him, is the introduction of more flexible employment arrangements which repeal the collective agreements that were in force in Greece until recently. The trade union leader described as unacceptable the intervention of the representatives of the Greek lenders in the face of the supervisory Troika - the IMF, the European Central Bank and the European Commission - in the reorganization of labour and legal relations in the country. "Their aim is to intervene in the mechanisms for determining the monthly salaries, thus undermining the foundations on which social policy in postwar Europe has been built."

According to Yiannis Panagopiulos, the European Commission has been hiding under the veil of the International Monetary Fund, and as he put it, in the process of setting the minimum wages in countries like Bulgaria, Romania and Greece. Now, however, the Commission is openly calling on the other EU countries to introduce more stringent policy in determining the salaries and to repeal the updating of wages in countries that still have such a practice.

On this occasion, Panagopoulos said that the Greek trade unions have changed their strategy and seek to join forces with trade unions in other European countries to achieve better results. "If you ask me what will be the new strategy I can not answer you yet," admitted the trade unionist wit resignation. But he stressed that European leaders must be open for public debate before voting on the new pact on competition which should hear the voice of European trade unions.

The unions want the indexes measuring the social status of workers in the European Union to be updated. The index, which defines the poverty line has focused so far mainly on pensioners and unemployed. GSEE wants a new index to be established to measure poverty for workers and to precisely identify the results from the tightening of economic conditions in the union and the implementation of more flexible employment policy in the private sector. Another requirement of the trade unions is a paragraph to be introduced in the stability pact to define the large budget deficits as unstable. Thus, according to trade unions, large budget surpluses should be identified as destabilizing because they are born by the countries of the periphery.

Yannis Panagopoulos said that when a European Monetary Union was formed like in the USA, then the external debts of the countries should not be treated separately, but equally. In this sense, he said the European Central Bank should change the rules now operating and when necessary to be able to buy government bonds of countries with lending difficulties.
 
Greek unions plan to start a tour of the largest municipalities in the country in the spring to meet with workers and other trade unionists and to jointly identify the new objectives of the organization. Panagopoulos called for joining forces to enable trade union voice be heard. He stressed that serious results can not be expected if rallies and strikes are organized each week. All actions must be targeted and if possible compatible with the rest European trade unions.