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Anti-austerity movement in Greece

2010–12 civil unrest over the government debt crisis and resulting policies

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Through Social networking service, Amnesty International and Gross domestic product

On 25 May 2011, anti-austerity activists organised by the Direct Democracy Now! movement, known as the Indignant Citizens Movement (Greek: Κίνημα Αγανακτισμένων Πολιτών, Kínima Aganaktisménon-Politón), started demonstrating in major cities across Greece. This second wave of demonstrations proved different from the years before in that they were not partisan and began through peaceful means. Some of the events later turned violent, particularly in the capital city of Athens. Inspired by the anti-austerity protests in Spain, these demonstrations were organised entirely using social networking sites, which earned it the nickname "May of Facebook". The demonstrations and square sit-ins were officially ended when municipal police removed demonstrators from Thessaloniki's White Tower square on 7 August 2011.

On 29 June 2011, violent clashes occurred between the riot police and activists as the Greek parliament voted to accept the EU's austerity requirements. Incidents of police brutality were reported by international media such as the BBC, The Guardian, CNN iReport and The New York Times, as well as by academic research and organisations Amnesty International. The Athens Prosecutor agreed to an investigation into accusations of excessive use of tear gas, as well as the alleged use of other expired and carcinogenic chemical substances. As of 2011, the investigation was under way.

Background of the 2010 events

In the early to mid-2000s, the government took advantage of Greece's strong economy by running a large deficit. As the world economy cooled in the late 2000s, Greece was hit hard because its main industries—shipping and tourism—were sensitive to changes in the business cycle. As a result, the country's debt began to pile up rapidly. The Government announced in late 2009 that it had racked up enough debt to be running a deficit of almost 13% of Greece's gross domestic product. This was worsened by Greece's problem with tax evasion among the country's upper middle and upper class, with the top bracket of households being responsible for 80% of total tax debt owed to the government. In early 2010 policy makers suggested that emergency bailouts might be necessary.

On 5 March 2010, the Hellenic Parliament passed the cost-cutting Economy Protection Bill. On 23 April, the Greek government requested that a bailout package offered by the European Commission and the International Monetary Fund be activated. The funds were expected to be available quickly, but it was unclear if they would be activated before a crucial 19 May debt rollover. On 27 April, Standard & Poor's cut the country's main debt rating to BB+ ("junk" status), increasing concern that a default might occur.

Austerity measures

On 1 May, Prime Minister George Papandreou announced a fourth round of austerity measures by the Greek government, described as "unprecedented". These include more public sector pay cuts, pension reductions, new taxes on company profits, an increase on luxury and sin taxes, and an increase of the Value-added tax. The proposed changes, which aim to save €30 billion through 2012, represent the biggest government overhaul within a single generation. The cuts are in line with the European Commission-International Monetary Fund loan proposals, which demand that Greece liberalise its economy. They helped Greece reach a loan agreement, announced on 2 May, for an immediate €45 billion in loans (with a 5% interest for the most part, provided by the Commission), with additional funds available in the future. The total value of the loans was expected to be in the €110 billion range. Papandreou submitted the bill to Parliament on 4 May.

The Hellenic Parliament was expected to vote on the proposed austerity measures on 6 May. New Democracy, the conservative minority party, vowed to vote against the bill, but the bill was expected to pass because of the Panhellenic Socialist Movement's large 160-seat advantage in Parliament. The government has pleaded with demoralised staff not to retire, fearing that a surge in benefits requests could further drain the public treasury.

In separate votes on 29 and 30 June, Parliament approved the austerity measures.

Relationship to the 2008 Greek riots

The 2008 Greek riots started on 6 December 2008, when Alexandros Grigoropoulos (Greek: Αλέξανδρος Γρηγορόπουλος), a 15-year-old student, was killed by two policemen in the Exarcheia district of central Athens. While the unrest was triggered by the shooting incident, commentators described the reactions as expressing deeper causes, especially a widespread feeling of frustration in the younger generation about the economic problems of the country (partly as a result of the 2008 financial crisis), a rising unemployment rate among young people and a perception of general inefficiency and corruption in Greek state institutions. Related sporadic protests continued into 2011 and beyond.

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