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Off the streets

July 26, 2011

As Greece comes to terms with a second bailout, the impact of the first rescue package has taken its toll across the private and public sectors. One group, taxi drivers, have now clocked up more than a week on strike.

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An Athens taxi and customers
It's normally easy to hail and ride a taxi in AthensImage: AP

A familiar sight on the streets of Athens has been missing for some time - the city's famous yellow taxis.

For more than a week, taxi drivers have been on strike over plans to liberalize the rules under which they operate.

Conspicuous by their absence, the drivers are opposed to the opening up of their traditionally closed livelihood - a requirement of the bailout from the European Union and International Monetary Fund (IMF).

The lack of taxis has proved inconvenient and has had a knock-on effect in many other areas of the economy. One sector that has suffered, particularly given the time of year, is tourism.

An empty Greek beach
The taxi strike has exacerbated a tourism crisis in GreeceImage: DW

"This is very bad for tourism in every aspect," said Niki Gargassoula, President of tour and conference organizing group Frei.

"It's a bad impact because we don't need to have other problems in this country," said Gargassoula. "Tourism is the most important sector. If we do things against tourism, it's not correct, I mean in the high season. It's a very selfish move."

A devalued asset

However, taxi drivers claim they are merely defending their livelihood and that new rules - which would lower the price of a taxi operating license - would be unfair.

In the past, drivers would have to pay 80,000 euros ($115,000) - for a license and rely on selling the documents on to the next generation when they retire. But under the new rules to liberalize the sector, the price will drop to 3,000 euros to encourage competition - devaluing an important asset for drivers.

"With the economic crisis here, the current proposals would be a catastrophe," said General Secretary of the Taxi Drivers' Association, Kostas Dimos.

"The profession is already saturated. We have 14,000 taxi-drivers in Athens alone. There isn't enough work for us. It's not our responsibility that tourists are being hit by the strike: it's the responsibility of the government who came up with these plans, he adds. Any worker whose job is threatened is going to protest."

Greek and European flags, with the acropolis
Greece and Europe struck a deal aimed at opening closed professions and livelihoodsImage: dapd

The government says it is determined to pursue its plans to deregulate the sector and that it will not tolerate blockades of ports, highways and airports.

Blockade is lifted, strike goes on

As the strike began last Monday, the protesting taxi drivers blockaded ports, roads and airports. The blockade was later lifted, but the strike continues.

"The constitutional right to strike is not equivalent to any right of actually interfering with other people's jobs," said Elena Panaritis, an MP with the governing PASOK party. "And that's what's been happening these last few days. We have a responsibility towards our citizens and we have now a responsibility towards our European partners. If they trusted us, we have to deliver. There is no u-turning in our way of doing business."

On Tuesday, drivers from around the country were being bussed into Athens for another planned demonstration to demand the transport minister change tack.

Dozens of tightly regulated professions are being liberalized as part of conditions to receive funds from the first 110-billion-euro bailout. Other workers who are to be affected include truck drivers, lawyers and pharmacists.

Author: Mark Lowen, Athens / rc
Editor: Andreas Illmer