Last month, the government proposed to sell off the faltering Olympic Airlines. According to AP, "flagging revenues forced the government to impose new taxes on capital gains and the self-employed earlier this year, and also to intensify plans to privatize ailing state companies."
Karamanlis won re-election, only last year, partly through reassurances that workers would be protected from mass layoffs while his administration set out to tackle key social and economic reforms.
Despite repeated assurances to shield consumers from price rises and compensate workers from privatised firms, the popularity of the government--currently protecting a fragile parliamentary four-seat majority--has plummeted amidst allegations of cronyism and corruption.
Meanwhile union leaders say the prospect of widespread job losses and government reform of wage and social security benefits will push more of the 11 million population into poverty. One in five Greek workers live below the poverty line, earning less than 5,000 euros a year, according to government figures.
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