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Greek assembly passes bill on rehiring public servants

Xinhua, May 7, 2015 Adjust font size:

Greece's parliament passed a new public administration reform bill on Wednesday that opens the way for the rehiring of about 3,900 public servants as the country struggles to meet its financial obligations and avoid bankruptcy this spring.

One of the amendments included in the bill foresees the transfer of cash reserves of general government entities to the central Bank of Greece in a bid to cover needs and avoid a credit event, a decision that has raised strong objections from local administration in recent weeks.

The new law foresees the reinstatement of civil servants who were dismissed or suspended under previous governments since 2010 as part of spending cuts and reforms introduced to address the debt crisis.

The ruling SYRIZA party had opposed the dismissals as "unfair, counterproductive and unconstitutional."

After assuming power in the Jan. 25 elections this year, the SYRIZA-led government pledged to restore the sacked public servants and appoint another 4,000 people who have passed exams to enter the public sector in recent years.

The bill that aims to reinstate public sector employees was ratified with 157 votes in the 300-member strong parliament, while the amendment on the transfer of cash reserves to the Bank of Greece passed with 153 votes.

During a heated debate in the assembly on Tuesday ahead of the vote, New Democracy (ND) party as well as the socialist PASOK party, who together formed the previous coalition government, walked out in protest of the government's choice to include 66 last minute articles and amendments in the bill.

The bill on the rehiring of the 3,900 civil servants was ratified as Greek state coffers were running out of cash this spring and cabinet ministers publicly acknowledged that Athens was struggling to repay loan installments to the International Monetary Fund and meanwhile pay the pensions and wages of civil servants.

Greece has been left with no international aid since August and liquidity issues have deteriorated as the new government negotiates the terms of receiving further aid by foreign creditors. Endit