Press Release

Statement by AFL-CIO President Richard Trumka on the Newly Elected Greek Government’s Economic Policy

The AFL-CIO joins with the General Confederation of Greek Workers (GSEE), our German union counterparts and unions from around the world in supporting the effort by the newly elected Greek government to open up economic and social prospects for the country beyond the failed austerity policy. On January 25th, Greek workers and their families used their vote to reject the anti-labor austerity policies that created severe humanitarian costs and weakened fundamental labor rights, including collective bargaining.  The election signals to the people of Greece and others around the world that the government needs new policies that invest in basic human needs, restore growth and maintain fiscal stability.

The reforms implemented by the previous government and imposed by multilateral institutions did not address Greece’s structural and debt problems.  Under the austerity policies, Greece’s debt grew while cuts to social protections devastated workers and their families.  The austerity policies shrunk the economy by 25%, increased unemployment to 27% for all workers and over 50% for young Greek workers. Many of the reforms implemented under the austerity measures exacerbated the humanitarian crisis and failed to address important needed structural reforms on tax evasion and corruption.

The current situation provides an opportunity for Greece and the rest of Europe to develop a new agenda for recovery and shared prosperity.  The Greek government’s initiative must be supported and given the needed time and bridge financing for effective implementation. The AFL-CIO stands in solidarity with the GSEE and commits to supporting Greece’s new path to securing a more prosperous future for its people.

Contact: Gonzalo Salvador (202) 637-5018