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Roundup: Greek gov't calls for dialogue on pension reform

Xinhua, February 14, 2016 Adjust font size:

Greece's government renewed calls for "honest dialogue" over the proposed pension system reform that has triggered the most ferocious protests in a year, as thousands of farmers continued to "besiege" the capital on Saturday.

After a day of tension and sporadic clashes with riot police across the Athens center and suburbs that ended with a peaceful rally in front of the parliament on Friday evening, with the participation of about 15,000 people, according to police estimates, a new demonstration was staged on Saturday.

Syntagma square opposite the parliament was filled with protesters for a second day, farmers appear determined to remain in the square until Monday and further escalate their mobilization.

"We will not go back empty handed," Rizos Maroudas, a member of the farmers' nationwide coordination committee for the over 60 road blocks said.

Protesting consumers demand that the government withdraws its draft proposal on the social security and taxation reforms. They claim that the planned changes which triple contributions to pension insurance funds and taxes will lead their families to starvation, as they are already struggling to make ends meet after seven years of steep recession.

Should the reforms be implemented, they would lose about 80 percent of their annual income on average to taxes and payments to social security funds, they explain.

"We should not miss any opportunities for dialogue to improve the government's proposal," Interior Minister Panagiotis Kouroublis said during an interview with local private channel MEGA on Saturday.

The government is ready to hold talks and reach solutions, Agricultural Development Minister Vangelis Apostolou and Labor Minister Yorgos Katrougalos said when addressing the parliament on Friday evening.

The government promotes a fairer and sustainable system, and the basic principle is that there cannot be second class citizens who will be paying fewer taxes and fewer contributions to receive smaller pensions, cabinet ministers argued.

The government also implies that a large percentage of farmers do not properly declare all their income. Six out of 10 farmers (about 340,000 tax payers) declare an annual income of 1,000 euros (1,126 U.S. dollars) and another 10 percent (57,000 farmers) declares an annual income of up to 2,000 euros, according to the Finance Ministry.

Farmers in the streets of Athens and other protesters such as self-employed lawyers and doctors who oppose the planned reforms, making similar arguments, vent anger at the government for one more reason: a year ago, before taking office the now ruling Radical Left SYRIZA party was pledging to tear up past bailout agreements with lenders and radically ease the burdens off Greek citizens' shoulders.

Following the signing of a new bailout in the summer of 2015 under the dark shadow of a looming possible default and Grexit, the government promotes a new round of austerity and reform policies that have fuelled disgruntlement and scenarios of a new political crisis and snap elections soon due to the slim majority it holds in the parliament.

SYRIZA MPs have come under increasing pressure to vote against the controversial bills when they will reach the plenary in coming weeks.

On Saturday protesting farmers stormed the airport of Alexandroupolis in northern Greece and prevented three SYRIZA MPs from boarding the flight to Athens, demanding that they will not vote in favor of the social security and taxation reforms. Endit