Another Greek minister out

This satirical animation about austerity, by Mark Fiore in the USA, is called Great Latvia Success Story!

From daily The Morning Star in Britain:

Syriza push forces new minister out

Wednesday 27 June 2012

A second Cabinet member in two days quit the Greek government today amid claims of a conflict of interest.

Giorgos Vernicos was the deputy minister at the merchant marine ministry.

Mr Vernicos is a big shipowner and Syriza, the main opposition party, demanded his resignation as part-owner of an offshore company, which ministers are barred from under Greek law.

Syriza said he was linked to the Vernicos Offshore Group – registered in the Marshall Islands, widely considered a tax haven – which says on its website that it is “a pioneering offshore group specialised in the offshore market.”

Syriza said that this was a clear conflict of interest and, even though Mr Vernicos insisted that he had suspended all business activity, his resignation was immediately accepted by the government.

He was the second person to quit during the new government‘s first week in office. Vassilis Rapanos resigned on Monday before he even took office as finance minister.

Mr Vernicos is not going to be replaced but prominent economist Yannis Stournaras was named as Mr Rapanos’s successor today.

Mr Stournaras is another member of the Greek government’s discredited old guard and was involved in the country’s negotiations to join the euro.

The new finance minister is a hard-line advocate of austerity and has publicly criticised Greece’s avoidance of carrying out broader structural reforms to cut costs, arguing that tax rises will ultimately fail.

The job and wage cuts and tax increases that Greece has imposed have sent unemployment soaring above 22 per cent.

See also here.

Paul Krugman | Why Iceland Is a Success Story. Paul Krugman, Krugman & Co.: “The Council on Foreign Relations people take me to task in a blog post titled ‘”Iceland’s Post-Crisis Miracle” Revisited’ for measuring economic performance in Iceland and the Baltics relative to the pre-crisis peak, which they suggest is some kind of scam. Why not measure relative to the post-crisis trough, under which the Baltics look better? So let’s try this slowly”: here.

6 thoughts on “Another Greek minister out

  1. Greek hotel and food catering employees stage 24-hour strike over new contract

    A 24-hour strike was staged by hotel and food catering workers in Athens on Wednesday in advance of the expiration of their contract on July 18. Two hundred workers rallied outside the Ministry of Labor, demanding that a new collective contract be signed. The collective contract for food catering employees is valid until August.

    The workers are also planning a 48-hour strike on July 10-11.


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