Greece Debt Negotiations: What is Going On (the truth)?

The Greek government has stated that it prefers to pay civil servants' salaries rather than pay creditors and avoid bankruptcy.

So, for the sake of 1.4 million (purported) cronies, the Greek government is ready to sacrifice the livelihood of the country's remaining 9 million!!!

This cannot be the opinion of most inhabitants, for sure.

Misinformed they may be-- either by the state controlled propaganda or the misguidance of people who are there to inform the public at large.

A friend said yesterday that the Greek government has yet to submit a valid proposal -- i.e. one that supports the weakest in the country, faces the crisis, contains cost-cutting measures and puts forth growth prospects. This is what the Europartners expect.

Instead, the Greek government's net contribution to the Eurogroup up to now has been to propose tax raises and to oppose, rather than propose: the counter anything and everything that is put on the table. So, the initiative is generally in non-Greek hands, hence (probably) the mailaise and incomprehension of Greece's Europartners.

I received the letter below and am reproducing it as is.

"""As an EU citizen with a family living in Greece, I am one of many inhabitants of the country dismayed by the nature of the negotiations between the Eurogroup and the Greek government – and fearful of the consequences of a misdeal. 

This is a very concerned citizen’s viewpoint.

The humanitarian crisis in Greece is real and real people are suffering. But these people are largely ignored - despite the best efforts of the Euro-Partners so far.

The Greek government argues that there is humanitarian crisis and claims flexibility in negotiations as long as there is a "fair deal". The government says it draws the line on touching "salaries and pensions" and on maintaining past labour law reform.

Salaries and pensions:

* "Salaries" can only refer to the Public Sector i.e., the Greek state payroll. In other words the Greek government's humanitarian concern for not reducing salaries refers to 800,000 - 1,176,000 persons (it is still unclear how many persons are directly & indirectly on the public payroll in Greece). It would seem that the Greek government is prepared to sacrifice a deal with lenders to protect the income of civil servants in the country.

* Salaries in Greece in the period 1997 - 2014 are still up by 7% comparing the two dates (eurostat). So, at least, civil servants, all of whom are still employed, are better off than their unemployed private sector brethren, even after the reductions imposed on their income in 2012-2013;

*Labour law in Greece is restrictive both in flexibility to employment and to redundancies, as well as to temporary placement.
The Greek government proposes to oppose or cancel reforms that have already been implemented, even though these reforms may help make recruitment & job creation easier and more attractive.

The “humanitarian crisis” in Greece:

* Pensions:
We have 4.5 mill pensioners in Greece, 1% are under the age of 25. The highest cost belongs to the 56-65 age brackets. Presently, 51% of new pensioners are in the age bracket 55-61 (Hellenic Stat Service). The monthly median pension is € ~900 and many pensioners who have contributed for decades are now supported by their families.
If further cost-cutting needs to be implemented it could be done selectively rather than across the board: in Greece the catalogues are up to date, so groups enjoying special benefits at the expense of others, or are employable, can be identified.

* Greece does not have a guaranteed minimum income (i.e., allocation universelle or revenue minimum); so, unless privately supported, if you are poor in Greece you will die.
A guaranteed minimum income is not included in the Greek government's humanitarian pursuits.

* Unemployment is ~26%, or close to 1.4 mill persons (Ministry of Labour 1/2015), mostly long-term unemployed. Benefits are only allowed for 12 months. Hence, only around ~10% of unemployed in Greece receive unemployment benefits (figures for 10/2014). The standard monthly unemployment benefit is € 360 and reaches € 540 for families with 5 children.
The nation's unemployed and their survival are not mentioned by the Greek government and do not seem to concern its members.

* Worse: medical cover is unavailable to the unemployed after 24 months. How people survive and their families cope thereafter is anyone's guess. Suffice it to note that children are insured under the parents’ benefits; without the parents insurance, children are uninsured as well.
Helping the unemployed is not part of the Greek government's humanitarian concerns either.

Overall, there is a crisis and there are people who hope for a solution but do not know where it will come from. Many do not know what is going on and when they search for a reason why there is no progress, they are told "it's the others' fault, the IMF, etc." They are assured that, "the government is doing its best to protect the citizens".  Probably, the people who are charged to inform the public are misinformed as well. 

Overall, in its five months in power the current Greek government has reinstated ~2300 civil servants who had been made redundant by the previous government and lowered the standards in secondary education. Nothing else.

The combination of lack of reliable information, misunderstanding, crisis, and the strange attitude of the country's government, spells catastrophe. """

Thus ends the letter. Hopefully not the country.