Greek public service employment relations: A Gordian knot in the era of sovereign default

Abstract

Public sector employment relations are at the centre of the Troika’s programmes for Greece. These require a reduction of primary public expenditure by 10 percent of GDP, a total redesign of public services and massive privatizations. Public wages have been subject to incremental cuts, together with moves towards weakening the special status of public sector employment. It remains an open question whether the urgent pressure to reduce public expenditure through successive quantitative adjustments may result in successful structural reforms towards a leaner and more efficient public sector.