How will the labour market absorb the wage hike? One would hope it will not be by reducing the number of jobs.
From his announcements in yesterday’s cabinet meeting, it is clear that the Prime Minister is in a rush to shift the political agenda from a national (Prespa) agreement opposed by the vast majority of Greek citizens to the so-called popular measures which he hopes will benefit him electorally. He hopes to offset the political cost of the agreement with handouts.
This method is not unknown in our country’s political life. Although it may be legitimate politically, it may prove illegitimate economically and socially.
This raises a series of questions. Will the government be prudent in handing out benefits or will it open the state coffers and along with them a Pandora’s Box? The impact of government benefits has not been registered in opinion polls.
The second question involves the nature of the social measures. How will the abolition of the sub-minimum wage (for workers under the age of 25) work in practice? Has the government ensured that young employees will truly benefit or will they be exposed even more to the arbitrary practices of employers? How will the labour market absorb the wage hike? One would hope it will not be by reducing the number of jobs.
Citizens have made enormous sacrifices aimed at economic recovery. No government and no electoral plan should undermine that effort.