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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared China says committed to U.S. debt, wary on gold | Video 6:51am EST Goldman Sachs sued by big pension fund over pay 08 Mar 2010 Tax soda, pizza to cut obesity, researchers say 08 Mar 2010 Airbus CEO says tanker bid makes no economic sense 12:50am EST Why Oscar chose "Hurt Locker" over "Avatar" | Video 08 Mar 2010 Wine may help women keep weight in check 08 Mar 2010 Goldman Sachs sued by big pension fund over pay 08 Mar 2010 Tax soda, pizza to cut obesity, researchers say 08 Mar 2010 Why Oscar chose "Hurt Locker" over "Avatar" | Video 08 Mar 2010 Scientists find why "sunshine" vitamin D is crucial 08 Mar 2010 Greek public, private sector clash over austerity Renee Maltezou and Ingrid Melander ATHENS Tue Mar 9, 2010 1:27pm EST ATHENS (Reuters) - Greece's new austerity package has driven a wedge between private and public sector workers, pitting resentful private employees against civil servants seen as privileged over who should pay for the country's debt crisis. World Under pressure from markets and EU partners, the government announced a new austerity package last week worth 4.8 billion euros ($6.53 billion) in savings, including a hike in VAT and duties, cuts in civil servants' income and a pension freeze. Labor unions called strikes and polls showed that while Greeks accept the need for sacrifices they mostly opposed this package. On the streets of Athens, ordinary Greeks said the austerity was not hitting the right people. "People are divided over the measures, because half are civil servants and the rest of us, the idiots, work to support civil servants. Why should I be paying for them?" said 58-year old businessman Yannis Kotoulas. A survey by polling agency GPO on behalf of MEGA TV taken between March 4 and 8 showed 60 percent of 1,400 people surveyed disapproved of the new measures, while 39 percent backed them. About half approved a cut in civil servants' holiday pay and a 52 percent majority still have a positive opinion of Prime Minister George Papandreou and prefer his PASOK party to the conservative New Democracy. The most unpopular measure, opposed by three-quarters of respondents, was a 2 percent hike in VAT, widely felt to be hitting the poorest. Some Athenians said opposition to the measures came largely from civil servants. "The reason people are 50-50 is because this is a battle between the public and the private sector," said 32-year old IT technician Nikos Papadopoulos. He said he believed the measures were necessary and he would not strike. SPOILED Greek civil servants receive on average higher salaries, work fewer hours and retire earlier than their private sector peers. About half a million are on the government payroll, and another 300,000 work in the wider public sector. By law, civil servants cannot be sacked and are seen by many Greeks as a major source of corruption, especially in town planning authorities, tax offices and hospitals. Jobs in the public sector are often secured through political patronage. The number of civil servants tends to swell before elections. "What is crucial for the government is to convince people that the measures are fair as well as effective," said Costas Panagopoulos, head of ALCO pollsters. An ALCO poll over the weekend also showed respondents were divided. Panagopoulos said that a tax bill expected later this month should help show that high earners were also affected and create more acceptance for the measures. Unions have stepped up opposition to the cutbacks. A second nationwide strike in two weeks is planned for Thursday and more frequent smaller walkouts have hit parts of the administration. Analysts said people did not really believe they would change the government's course with these protests, largely viewed as symbolic, but warned things could get tougher with the government if it does not show quickly that the measures work. "Now people respond to announcements. When they become measures and they feel them in their pocket ... you will have far more serious demonstrations. They will not be as civilized as they are now," said Yanis Varoufakis, professor of economics at the University of Athens. World More from Reuters Dendreon stock mauling probed by regulators NEW YORK (Reuters) - A lightening fast sell-off of shares of biotech company Dendreon last April is drawing scrutiny from U.S. securities regulators and the independent monitor assigned to keep tabs on those regulators, said people familiar with the matter. Treasuries, sovereign debt "dangerous": Fuss Greece wants speculative curbs, U.S. has own plan NY voters dislike governor, want to keep him Barclays looking for U.S. retail bank to buy: report White House's Romer: Too soon for spending clamp-down » More Top News U.S. cool to Greek push Greece called for a crackdown on the speculative trading blamed for its debt crisis, but President Obama has his own plans. Full Article | Video Factbox: Key risks to watch in Greece Portugal follows Greek austerity path Felix Salmon: Don't blame CDS Global Markets Massa says he was "set up" Republicans are hopping with joy as political media sensation Eric Massa says he was pushed out of office to keep him from voting against healthcare reform. Full Article Massa another blow to Democrats Massa: Rahm "son of devil's spawn" Politics © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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