Greek premier Alexis Tsipras has marked one year in office by telling supporters that his pension reform bill must go ahead. Rural waverers among his leftists are threatening to erode his coalition’s three-seat majority.
Greek Prime Minister Alexis Tsipras told 4,000 supporters in Athens on Sunday that he was determined to make a pitch for pension reform, despite opposition from farmers, the self-employed and small firm proprietor who will be hit by higher contributions.
The reform “must go ahead, it’s necessary,” said Tsipras, who intends to put the bill to parliament early next month.
Tspiras’ remarks came on the eve of Monday’s one-year anniversary of the election victory of his leftist Syriza party, a year marked by dramatic negotiations with Brussels over Greece’s future in the eurozone and unprecedented arrivals of refugees, mainly from war-torn Syria, headed for Western Europe.
Pension reform sought by bailout lenders
The pension bill is designed to save 1.8 billion euros ($1.7 billion) this year, and is crucial for the first review of Greece’s EU-led bailout by international lenders, who have also pressed for tax overhauls.
Tsipras has vowed, however, not to trim pensions from current levels, saying they had “already been cut by 40 percent” by previous Greek governments under pressure from key lenders such as the EU and the International Monetary Fund (IMF).
Farmers, who three years ago hailed Tsipras as an opposition politician, are now widely critical because their payments into Greece’s insurance scheme could triple.
“He lied, he imposed more taxes than all the others put together,” Yiorgos Kostakiopoulos, a wheat and cotton grower, told Reuters on Saturday.
“He was here with us, told us that he would fight with us for a dignified income for us and our children,” said the father of three.
Greece’s Labor Ministry recently claimed that many farmers were under-declaring their incomes, leaving the state to top up their pensions by up to 90 percent.
Already, as part of broader reforms, fuel subsidies have been slashed and taxes on fertilizer and animal feed increased.
Political analyst George Sefertzis told AFP that Tsipras was now facing an uncertain negotiating outcome – exactly what happened to his conservative predecessor Antonis Samaras in his final six months of power in 2014.
Tspiras’s emerged as Syriza’s stalwart in January 2015, vowing a debt revolution. Months of dramatic negotiations with Brussels were followed by re-election in September, again as head of a coalition with the nationalist Independent Greeks (ANEL) party, but minus radical Syriza dissenters. In those months, Greece was nearly evicted from the eurozone.
The latest surveys show Greece’s right-wing opposition resurging in voter support.
Tsipras has 153 lawmakers in the 300-seat parliament, but Syriza waverers have threatened to erode that three-seat lead to press the views of small-scale farmers.
Europe transformed: Tspiras
On Sunday, Tspiras claimed that his government’s struggle with Brussels had brought long-lasting change to the EU.
“Europe is no longer the same,” he said, referring to recent anti-austerity swings in electoral sentiment in Spain, Italy and Portugal.
At the height of last year’s highly public Greece-EU row, Tspiras argued that debt-swamped Greece would never recover if bailout lenders forced it to just make spending cuts and hike taxes, without investments.
In July, Tsipras ousted his outspoken Finance Minister Yanis Varoufakis and signed another rescue package worth 86 billion euros coupled with spending cuts.
On Friday, Standard and Poor’s raised its credit rating for Greek debt by one notch – up to B- from CCC+, removing Greece from default vulnerability.