VZCZCXRO1367
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTH #0441/01 0811223
ZNR UUUUU ZZH
P 211223Z MAR 08
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC PRIORITY 1512
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 ATHENS 000441 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ELAB ECON SOCI GR
SUBJECT: SOCIAL SECURITY REFORM BILL PASSES IN PARLIAMENT 
 
REF: A) ATHENS 433 
 
     B) ATHENS 400 
 
SENSITIVE BUT UNCLASSIFIED -- PROTECT ACCORDINGLY 
 
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SUMMARY 
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¶1.  (U) Greece's parliament approved its government- 
sponsored pension reform bill late Thursday, March 20, 
after weeks of protests and strikes by labor unions.  The 
bill passed in its proposed form with 151 votes in favor 
and 13 against.  Major opposition party PASOK and far-right 
LA.OS walked out of the Parliamentary session before the 
vote.  Although the Coalition of the Radical Left (SYRIZA) 
called for a referendum in a last-ditch attempt to keep the 
bill from reaching presidential signature, it ultimately 
lacked the minimum 180 votes necessary to call a 
referendum.  Unions announced their intent to launch a 
legal battle against the reforms - this is unlikely to 
yield results.  Some unions are also promising additional 
strikes.  Having exhausted all reasonable avenues of 
dissent, a final vote will be cast today, March 21, 
cementing the controversial bill to law.  End Summary. 
 
-------------------------- 
 in favor from conservative MPs and 
one independent, and 13 MPs from the leftist coalition 
against. All other parties abstained, including the main 
socialist opposition PASOK.  PASOK and far-right Popular 
Orthodox Rally (LA.OS) MPs pointedly walked out of the 
session following debate.  Meanwhile, riot police deployed 
in front of the Parliament in response to rock-throwing and 
attacks on police. 
 
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SYRIZA Calls for Referendum 
--------------------------- 
 
¶3.  (U) Opposition parties attempted to delay the bill 
hours before the vote by gathering signatures to force a 
referendum; a tactical move to keep bill from reaching 
presidential signature.  After the reform bill passed, 
SYRIZA group leader Alekos Alavanos tabled a motion to 
invoke Article 44 of the Constitution, the article that 
provides for referendums in cases of draft laws that 
regulate major social issues.  Although PASOK and LA.OS 
supported Alavanos, the opposition group lacked the minimum 
180 votes.  The parliament did, however, agree to hold a 
discussion on the referendum next week, a move which 
allowed the vote to continue and the bill to be approved. 
 
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Opposition and Union Reaction 
----------------------------- 
 
¶4.  (U) Typical party rhetoric dominated pre-vote 
discussion.  PASOK party leader George Papandreou accused 
the government of "authoritarian logic" and of "slipping 
towards undemocratic means against working people."  While 
promising that his party will abolish this law when it 
comes to power, he said the reform "is a mine in the 
foundations of social cohesion."  SYRIZA leader Alavanos 
asserted that Prime Minister Costas Karamanlis was a 
"ghost" and a "puppet in the hands of communication 
specialists."  The debate in Parliament was characterized 
by even more fiery rhetoric than usual, with the Chairman 
unsuccessfully seeking to gavel down several impassioned 
opposition speakers.  Meanwhile, Labor Minister Fani Palli- 
Petralia described the bill as "a great social security 
reform," adding she was proud to be the Minister of "this 
great reform in the social security sector." 
 
¶5.  (U) Unions announced preparations for "guerrilla 
warfare" against the pension law with court action in 
Greece, and the General Confederation of Workers of Greece 
(GSEE) expressed support for a "legislative referendum in 
which the unions will play a leading role, to enable the 
Greek people to express themselves on this extremely 
crucial social issue, the social security issue."  Several 
unions have also threatened to maintain strikes against the 
law, although they have provided no further specifics. 
 
ATHENS 00000441  002 OF 002 
 
 
 
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Comment 
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¶6.  (SBU) Greece is one of several European Union countries 
facing a pension crisis due to an ageing population. 
According to experts, if left unchanged, Greece's pension 
funds' actuarial deficits could reach close to twice the 
country's GDP; furthermore, the current social security 
system is widely considered fragmented, wasteful and 
mismanaged.  Passage of this bill was one of Prime Minister 
Karamanlis' highest priorities.  He has successfully 
achieved his objective, maintaining party discipline 
notwithstanding a one-vote majority in the parliament, 
despite deep popular discontent, as demonstrated by the 
weeks of strikes and protests.  End Comment. 
 
SPECKHARD