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Another week of negotiations in Brussels and the tango between the Greek government and the Troika continues; albeit potentially coming to its climax this Sunday 5^th July in the Greek’s referendum on the Troika’s latest proposal.  The European Association of Service providers for Persons with Disabilities (EASPD) regrets that the priorities of the Troika during the negotiations seem to focus solely on reducing Greek debt, rather than also issuing proposals aiming to improve the quality of life of the millions of Greeks currently living in poverty.

The latest proposal agreed by the Troika made up of the European Commission (EC), European Central Bank (ECB) and the International Monetary Fund (IMF) demonstrates just this. Although there are some proposals which go in the right direction (on corruption, tax avoidance, etc), EASPD strongly regrets that no policy related to social investment, to tackling poverty and social exclusion or to improving access to quality health and social services have been considered as key to economic recovery in Greece and therefore, if well implemented, to a smarter, more sustainable and inclusive growth.

The European Commission states that this package is a basis for a “new start for jobs and growth in Greece”; yet there is no reference to job creation in the proposals. Similarly, the only reference to “Social Welfare” is used to target additional savings of ½ percent of GDP; and consequently further reduce public expenditure in social welfare.

The IMF has recently published a study stating that “irrespective of the level of economic development, better access to education and health care and well-targeted social policies, while ensuring that labor market institutions do not excessively penalize the poor, can help raise the income share for the poor and the middle class”. The study follows up by arguing that “an increase in the income of the bottom 20% (the poor) is associated with higher GDP growth” than an increase in the income share of the top 20%.

It is clear that the IMF study is calling for social investment, a process also supported by another member of the Troika – the European Commission – as key to increasing the human capital and skills of society’s poorest and socially excluded; consequently strengthening inclusive growth as a whole. Given such arguments, EASPD continues to question why the Troika has yet to put forward significantly more balanced proposals; far more able to provide the Greek’s poorest with economic and social recovery than what is currently on offer.

As Luk Zelderloo, Secretary General of EASPD concludes, “it is time for the Troika to place more efforts on policies investing in people and put forward a more balanced proposal. Without such policies, the Greek people will continue to suffer and their economy will consequently have little room for recovery. In short, the Troika has to make it easier for the Greek people to say YES to Europe on Sunday!”

The European Association of Service providers for Persons with Disabilities calls on

• The EC, ECB and the IMF (Troika) to discuss and present a new comprehensive deal – as based on the Social Investment approach- to the Greek authorities;
• The EC to re-evaluate on how it can best strengthen European solidarity; in particular within the framework of the review of the 2020 strategy.
• Civil Society stakeholders to be further mobilised to ensure that European and national policy-makers understand the importance of European solidarity and unity to achieving the Europe 2020 targets and the European project as a whole.

Download this press release in pdf version.