Tuesday 4 October 2011

It is good to be a civil servant in Greece

EU officials apply pressure, the "Troika" "strongly urge", the IMF throws a supporting comment here and there-- but no cigar:

Greece's socialist government doggedly refuses to reduce the Public Sector. It does of course make all sorts of noises and calculated leaks that sparks TV chatting and general speculation -- to appease EU officials and support local speculation.
It is also an indication that some structural change is being implemented -- even none is.

Despite media indications to the contrary and Greek politicians' supporting noises, Greece's Public Sector including nationalised companies is still running at just under 1mill. strong, up 11.000 from last year. These people do not fear redundancy: the only action Greece's merry socialists will take is early retirement for c. 30.000 civil servants who are in pre-retirement age at this moment.

So, Greek civil servants -- many of whom are uncivil and most of whom do not serve -- are keeping their jobs. Whatever the stakes and against all odds.
A rare display of loyalty from the country's ruling socialist party, Pasok, to its equally loyal fans: the Greek public sector votes in favour of Pasok at an overwhelming rate of 60-70%


Meanwhile, private sector unemployment continues in growth mode.


In paper, this trend (public sector job conservation vs. private sector job losses) can lead to nicely centralised country, with a unique, large national, employer -- the State.
A state controlled, centralised economy boasting full employment.
Foreign employers will be tolerated as will be the odd craftsman as well as small private shop owners.
This is reminiscent of the Soviet Union in the late '70s & '80s; especially in the auxiliary countries such as Hungary, this model dominated.

But this model was abandoned along with the (soviet) Union.


Perhaps however not totally abandoned.
Could it be that Greece in the running to become the Neo-Soviet state?