Greece is a country of unemployed people and pensioners, as only one in three Greeks is an active member in the economy, says a Tagesspiegel report.
The German newspaper says that there is no light at the end of the tunnel as pensions plunge, unemployment rises and only one in ten jobless people get unemployment benefits from the state. As a result, a new status quo is established in Greece.
The report is based on data recently publicized by ELSTAT, the Hellenic Statistical Authority. According to ELSTAT figures, more and more people lose their incomes and live on social welfare, such as special subsidies and unemployment benefits, while the number of those who get financial help from their families is also on the rise.
EUROSTAT estimates show that unemployment will increase to 25.8 percent in 2016, up from 24.6 percent that was a high in August, mainly due to the peak of the tourist season.
According to Tagesspiegel, the new pension cuts required by Greece’s bailout program will add to the general poverty.
The newspaper quotes Greek Economics Professor Savvas Rombolis who said that a big part of the Greek population is caught in an “inevitable poverty trap.” Rombolis added that, “under these conditions Greece cannot hope in a sustainable economic development, without a sustainable social security system.”
Furthermore, the economics professor says that the impoverishment of large sections of the population and the erosion of the technological and productive infrastructures are very dangerous for Greece’s future.
Rombolis also stated that Greece’s population is one of the oldest in Europe, something that will have a negative impact on future economy.
