4 Sep 2013
Troika urges Greece to close down defense companies
FXstreet.com (Barcelona) - The EU, ECB and IMF put more pressure on heavily indebted Greece by urging the country on Tuesday to close down its defense industries and lay off the workers “in some cases without compensation.” Should Greece fail to comply it would not receive the next, one billion euro bailout payment, which is due to be released in October.
Greek PM Antonis Samaras's earlier proposition to overhaul the three loss-making defense companies, namely the Hellenic Defense Systems (EAS), the mining company Larco and the Hellenic Vehicle Industry (ELVO), was rejected by the international creditors.
The Greek government has already agreed to make substantial layoffs in the public sector by moving 12,500 civil servants into a “mobility scheme”, which entails transferring or dismissing the workers within one year.
Additionally, German Finance Minister Wolfgang Schaeuble suggested earlier this week that Greece could need extra aid next year, but that the country would not get any more money without implementing the required reforms.
Greek PM Antonis Samaras's earlier proposition to overhaul the three loss-making defense companies, namely the Hellenic Defense Systems (EAS), the mining company Larco and the Hellenic Vehicle Industry (ELVO), was rejected by the international creditors.
The Greek government has already agreed to make substantial layoffs in the public sector by moving 12,500 civil servants into a “mobility scheme”, which entails transferring or dismissing the workers within one year.
Additionally, German Finance Minister Wolfgang Schaeuble suggested earlier this week that Greece could need extra aid next year, but that the country would not get any more money without implementing the required reforms.