Greece cuts job restrictions, prepares debt measures

Greece yesterday launched deep reforms of 136 service occupations from breadmaking to butchering to end restrictive practices as the Cabinet met to finalise measures to ward off a second debt crisis.

The European Union and International Monetary Fund had made the application of such measures a condition of the release in March of the fourth slice of rescue loans, in this case €15 billion.

An upcoming instalment worth €12 billion in May is now at stake.

A broad law to remove restrictive practices was passed three months ago, and yesterday the Finance Ministry published a list of 136 professions and independent service activities which will no longer be protected by rafts of conditions, such as quotas and geographical limits.

The activities concerned a range from music teaching to beauty care, from money changing, breadmaking and insurance broking to interpreting, electrician services and operating butchers’ shops.

Psychologists are also on the list, which was described as a guideline.

The deregulation, which has already targeted lawyers, notaries and engineers, is designed to facilitate job creation at a time when over 780,000 people are out of work according to state statistics.

Press reports here say that every ministry has dragged its feet in preparing lists and measures to enact following the enactment of the deregulation law in February.

Employers and trade federations have warned against deregulation of protected services and arrangements.

A recurrent problem in Greece has been that laws voted by Parliament are not enacted and enforced.

The Greek media also say the delay on service occupations has greatly irritated auditors from the International Monetary Fund, European Union and European Central Bank. They are here for a regular analysis of how Greece is enacting reforms promised in return for a rescue package of €110 billion last May which enabled the country to avert bankruptcy.

On their visit depends the release of the next slice of the rescue money, but several senior EU voices, and also the head of the Greek central bank, had said that Greece has fallen behind the schedule of its commitments and that acceleration of privatisations in particular is urgent.