April 28, 2024

Memo From Greece: Muffling of a Voice Provokes an Outcry in Greece

A bit melodramatic, lagging in parts, but full of feeling, the performance of “Nimrod” from Elgar’s “Enigma Variations” captured something in Greece. It became the soundtrack to a country falling apart, a dirge for a social order dissolving with each new quarter of recession, the sound of a loss of faith in the ability of Greece’s leaders, and Europe’s, to set things right.

The video — and the live-streaming of programming online, produced by employees still showing up to work, unpaid and occupying headquarters illegally — has elicited immense solidarity with a broadcaster that Greeks have traditionally seen as mismanaged and overstuffed with patronage hires.

For a government intent on projecting an image that it is in control, shutting down the Hellenic Broadcasting Corporation, known as ERT, was a bold gamble. Mr. Samaras wanted to show Greece’s troika of international lenders that he was able to meet their demands to fire public-sector workers — something that in four years of financial crisis and rapidly shrinking budgets Greece had not managed to do.

But in a crisis based in large part on perception, turning off the public broadcaster — one of the only broadcast news sources not owned by Greek business magnates — revealed another side of the prime minister, one his critics say is increasingly autocratic and stubborn, willing to infringe on press freedom and risk a political crisis to meet the demands of Greece’s creditors.

The decision to close the broadcaster rattled Greece’s weak governing coalition, and talks Wednesday evening to avert a collapse were inconclusive. But it was widely believed that the parties would patch up their differences on Thursday, particularly given an order by the Council of State, one of the country’s highest courts, to reopen ERT in some form and the coalition partners’ fear of the leftist opposition party, Syriza.

Yet, the debate over ERT has become “Rashomon”-like with perceptions strongly influenced by the observer’s perspective.

Over the years, successive governments have brought in waves of the party faithful to staff ERT. No one was fired, so no one is denying that the ranks were filled with patronage and political hires — earning the ire of most Greeks.

While the ERT staff can be seen as lean compared with other state broadcasters in Europe, it is widely regarded in Greece as a spendthrift. Before the financial crisis hit in 2009, it had about 100 on-air presenters earning around $650,000 a year, according to a former ERT manager. The violinist in the video plays in one of the network’s three orchestras.

Mr. Samaras has called ERT a costly bastion of favoritism, yet his critics note that much of the patronage came from his own New Democracy Party and the other members of the governing coalition.

Giorgos Kogiannis, a former head of news at ERT, accused the government of hypocrisy for closing ERT down to cut costs, claiming that the three-party government formed last June immediately appointed its own people to key posts there and tripled the number of advisers to the new chief executive.

“As soon as they came to government, they started the political appointments at ERT,” Mr. Kogiannis said. “They put 20 advisers in the C.E.O.’s office, compared to six before.” He added that several positions were given to people with close ties to the government spokesman, Simos Kedikoglou, and other top government officials.

Mr. Kedikoglou did not respond to a request for comment.

ERT’s 2,600 employees, meanwhile, are fighting to save their jobs and, understandably, feel like pawns in some larger battle.

On Tuesday afternoon, Greek folk music blared from 10-foot speakers and banners rippled across the building’s facade, railing against what workers called the “sudden death” of the decades-old institution. “Not for sale!” read one. “Unemployment, poverty and now the loss of culture — this is the price for the euro,” read another.

Liz Alderman reported from Athens, and Rachel Donadio from Rome. Niki Kitsantonis contributed reporting from Athens.

Article source: http://www.nytimes.com/2013/06/20/world/europe/muffling-of-a-voice-provokes-an-outcry-in-greece.html?partner=rss&emc=rss

Ireland’s Austerity Hailed as Example of Financial Survival

Having embraced severe belt-tightening to mend its tattered finances, Ireland is showing glimmers of a turnaround. A year after it received a 67.5 billion euro bailout, or about $90 billion at current exchange rates, modest growth has returned and the budget deficit is shrinking.

But the effects of austerity have pummeled Ireland’s fragile economy, leaving scars that are likely to take years to heal. Nearly 40,000 Irish have fled the country this year alone in search of a brighter future elsewhere; the trend is expected to continue.

“This is still an insolvent economy,” said Constantin Gurdgiev, an economist and lecturer at Trinity College in Dublin. “Just because we’re playing a good-boy role and not making noises like the Greeks doesn’t mean Ireland is healthy.”

The German chancellor, Angela Merkel, recently praised the Irish prime minister, Enda Kenny, for setting an “outstanding example,” while the French president, Nicolas Sarkozy, declared that Ireland was already “almost out of the crisis.”

Underneath the surface, however, the grinding reality of Irish life belies those glowing commendations.

Salaries of nurses, professors and other public sector workers have been cut around 20 percent. A range of taxes, including on housing and water, have increased. Investment in public works is virtually moribund.

On Monday and Tuesday, Mr. Kenny’s government is announcing an additional 3.8 billion euros in tax increases and spending cuts for 2012 that will affect health care, social protections and child benefits.

Retail sales fell 3.8 percent in October from a year earlier as spending was down even on things like school textbooks, shoes and other basic goods.

At a Spar convenience store in the center of Dublin, Samantha O’Donnell, a mother of two, filled her shopping basket with some necessities, then put a few back on the shelf.

“A lot of people are just trying to get by week to week,” said Mrs. O’Donnell, who said her salary as a nursing assistant had been cut.

To Sean Kay, a professor of politics at Ohio Wesleyan University in Delaware, Ohio, and the author of a recent book examining Ireland’s crisis, Mrs. O’Donnell’s experience is typical. “The Irish are being praised for doing what they were asked to do, which is important for bringing investors back to the country,” he said. “But for the Irish people, it’s not paying off.”

There are signs of improvement. Compared with the previous year, exports are up 5.4 percent for the first nine months of 2011, driven by gains from Pfizer, Intel, SAP and other multinational companies that were drawn to Ireland in the 1990s and 2000s by its low taxes, well-educated English-speaking work force and access to the European market. New information technology companies like LinkedIn and Facebook have recently arrived.

Prospects for local technology companies are improving, too. Brian Farrell founded Tethras with a partner three years ago to develop mobile applications for smartphones. He now has 16 employees and hopes to double his work force in the next 18 months.

“Every time you turn the radio on, companies in I.T. are hiring,” Mr. Farrell said, referring to information technology.

Gross domestic product grew 1.2 percent in the second quarter from a year earlier, compared with a decline of 0.4 percent for all of 2010 and 7 percent in 2009.

The interest rates that Ireland would pay its international creditors if it were not on a financial lifeline have also fallen, to 8.7 percent today from 14 percent in August, in part because investors hope that European policy makers will resolve the broader debt crisis.

But that is still above the level that led Ireland to seek a bailout and too high to allow for sustainable finances.

Article source: http://feeds.nytimes.com/click.phdo?i=a95ab94c70a70067d575a5f9796d4894