WRITTEN QUESTION P-0351/03

by Rodi Kratsa-Tsagaropoulou (PPE-DE) to the Commission

(6 February 2003)

Subject: Civil servants and public finances in Greece

Recent data (2001) of the National Statistical Office of Greece (ESYE) and the Greek State budget show that public sector employment has increased and is set to expand considerably owing to the introduction of part-time

employment. It is calculated that the total number of employees in the public sector in the broad sense of the term is over 500 000 (five hundred thousand). There has also been an increase in the number of persons retired from public service employment who now number 366 595 (three hundred and sixty-six thousand, five hundred and ninety-five). At the same time the number of people of working age in the private sector is declining.

How does the Commission view this situation? What impact will it have on the streamlining of the Greek economy, on pension schemes, on competitiveness and on attaining the Lisbon objectives? Has it issued or does it intend to issue recommendations on this matter to the Greek government?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(5 March 2003)

Employment guidelines(1) contain policy orientations for all Member States in the framework of the European employment strategy implemented through the Luxembourg process. Member States are invited to take into account these guidelines in formulating their national employment policies. This framework includes guidelines for increasing labour-force participation and raising employment rates towards achieving the Lisbon objective (European Council of 23 and 24 March 2000) of full employment.

Promoting flexible forms of work, notably part-time work, may constitute an important policy element for raising employment rates. On the basis of the assessment of the implementation of the guidelines and the country specific recommendations presented in the draft Joint Employment Report (JER) 2002(2), one of the key issues for the future that were highlighted, is the provision for greater incentives to part-time employment. In this connection, it is worth noting that Greece continues to exhibit the lowest part-time rate in the Union (3,5 %) in comparison to a Union average of 18 %.

In addition, the 1st Recommendation addressed to Greece (Council Recommendation 2002/178/EC of 18 February 2002)(3), states that Greece should continue efforts to ensure the implementation of the employment guidelines across the four pillars with a view to increasing employment in particular for women and young people. This implies measures that will change the present pattern of work, to become more flexible and better match the needs of specific groups of the working population (particularly for women and older workers).

Moreover, in formulating the employment guidelines much attention is placed on ensuring consistency with the economic policy objectives, including public finances, underpinning the Broad Economic Policy Guidelines (BEPGs). Neither in the assessment of the National Action Plans (NAPs) nor on the implementation of the BEPGs the phenomenon highlighted by the Honourable Member has come up as a matter of concern.

With regard to pensions, the Greek Government has passed new legislation (Law 3029/02 adopted in 2002) with a view to rationalise and improve the confidence in the pension system, and avoid serious budgetary imbalances related to the ageing population.

(1) Council Decision 2002/177/EC of 18 February 2002 on guidelines for Member States' employment policies for the year 2002, OJ L 60, 1.3.2002.

(2) COM(2002) 621 final.

(3) OJ L 60, 1.3.2002.