Greece passes pension reform bill

Greece's parliament has narrowly passed the conservative government's controversial pension reform bill that triggered mass public protests.

The bill passed with 151 votes in favour, 13 against and 136 abstentions.

The reform is to eliminate most early retirement schemes, merge pension funds and cap auxiliary pensions.

The plans have outraged unions and civil servants. Tens of thousands of workers took to the streets on Wednesday in a series of strikes.

Athens clashes

As legislators debated the bill inside parliament, police and protesters clashed outside the building.

"The government is stealing the people's money. It's that simple," the leader of main opposition socialists, George Papandreou, said before his party's 102 deputies walked out of the vote.

"People have worked hard for their pension rights. Now, they are being taken away from them in the most arrogant way."

The conservatives have 152 MPs in the 300-seat parliament, but one did not vote due to illness.

A nationwide strike by civil servants on Wednesday paralysed transport and closed public offices.

Trade unions said millions of people took part in the 24-hour action, which was marked by clashes in Athens.

Re-elected last September, the conservative government of Prime Minister Costas Karamanlis wants to overhaul Greece's debt-ridden pension system.

It had warned the system faces collapse unless the sweeping reforms are implemented.

More than 130 social security and pension funds are to be merged into 13 funds, cutting administration costs.

The government also wants to raise the retirement age in some sectors, and give incentives to those who continue working after the retirement age, which currently stands at 65 for men and 60 for women.

A survey by the banking unions showed that 71% of the population opposes the pension reforms and 69% supports the strike.

Source: news.bbc.co.uk

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Greek general strike

For more details on yesterday's strike and demonstrations see;

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Protesters occupy Thessaloniki chamber of commerce

Thessaloniki - Greece

Demonstrators in the northern Greek town of Thessaloniki occupied the city's chamber of commerce (SEV) in protest against the government's plans to reform the state pension scheme. In prelude to the general strike announced by unions tomorrow anti - authoritarian groups took over the building housing SEv on Tsimiski St and handed out leaflets to passers by. They denounced reform plans which have generated a wave strikes and stoppages and strikes over the last month.

The conservative government's new law, which will be put the vote in parliament tomorrow, would see the country's 133 pension schemes slimmed down to 13 and see drastic cuts in the pensions given to those retiring early and an increase in retirement age for others.

The demonstrators argue that existing shortfalls in the pension funding system comes from the failure of government to collect contributions from employers and the fact that billions of euros in debt have been written off in return for political favours. Indeed the Greek state itself owes the pension fund 7.8 billion euros, according to figures quoted by representatives of those protesting.

Tomorrow power workers, local council staff, lawyers, journalists, public transport employees and many other public and private sector workers are planning to strike in an action that is expected to bring the country to a halt.

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Pension reforms

Pension reforms, originally uploaded by Teacher Dude's BBQ.

"Prime Minister Costas Karamanlis promised yesterday to carry through with pension reforms, despite strong union protest, saying an overhaul of the ailing system was imperative."

Kathimerini