THE END OF HISTORY WILL MAKE YOU WEALTHY...:

The 'fiction of affluence' has Greeks uneasy (Carter Dougherty, May 26, 2008, IHT)

In February, Greece was paralyzed by a nationwide general strike that shut down air travel, hospitals and public transportation. Unions were angry over plans to consolidate more than 170 different pension plans and limit early retirement. Embarrassing for Greek finance, the strike also brought trading on the stock exchange and bond markets to a standstill.

Work stoppages or slowdowns have become a recurrent feature of Greek life. One weekend this month, gas station owners quit pumping fuel to protest government regulation of transport fees, while pilots forced the cancellation of dozens of flights in a contract dispute.

Karamanlis's government pushed the pension changes through Parliament in March, but independent observers warned that the system was still unsustainable. A low birthrate combined with generous benefits means that its cost will balloon to nearly 25 percent of gross domestic product by 2050, nearly double the average in Western Europe.

Still, Greek politicians are cagey about when they might tackle the issue again. "I'm not saying that somewhere down the line in 10 or 12 years we will not need another round," Alogoskoufis said.

This year, the government also began considering plans to sell a minority stake in OTE, the former phone monopoly, to Deutsche Telekom, the mere whiff of which brought OTE workers onto the streets. At one point, they burned and defaced several Belgian flags, mistaking them as German, and plastered Athens with posters portraying Nazis in an assault on Greece.

"There is a perception in Greece, which is fading now but very strong in the past, that whatever is related to public sector is good and what with the private sector is viewed with suspicion," Alogouskoufis said. "And if it's private sector and coming from abroad, then it's worse."

The sale is part of the government's plan to reduce the state share in the Greek economy, which, at slightly under 50 percent, is one of the largest in Europe. The government is also entertaining bids to run Greece's two biggest ports, Piraeus and Thessaloniki, and wants to do the same with airports.

Greek unions have signaled they will fight the plans every step of the way.

...but it won't make you happy.

Posted by Orrin Judd at May 27, 2008 12:08 AM