Greek Cotton Growers Demand Subsidies

Reuters

Renee Maltezou; editing by Charles Dick

Greek farmers who have blocked highways and border crossings for nine days marched through Athens on Monday, piling pressure on the socialist government struggling with a financial crisis.

Thousands of wheat, corn and cotton growers have caused major transport disruption across Greece by blocking roads with their trucks and tractors. Others have blocked the Promahonas border crossing with Bulgaria and the railway, ignoring appeals by Greek businesses and complaints from Sofia.

The farmers’ protest is seen as the first test for the ruling socialists, who need to impose tough austerity measures but face unions’ opposition. If the government stands its ground in negotiations, the signal to other unions will be clear.

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After a meeting with farmers on Sunday, Agriculture Minister Katerina Batzeli said the government would not satisfy their financial demands.

“The government is determined to get the country out of the crisis,” Batzeli said. “It can’t afford the money they are asking for.”

The government has promised the European Union to narrow its double-digit budget shortfall to 2.8 percent of GDP by 2012 through welfare spending cuts, tax reforms and savings on public sector wages.

Greece has one of the EU’s biggest farming sectors, accounting for about 5 percent of the country’s GDP. But most of it consists of small-scale farmers who rely on EU subsidies and guaranteed minimum prices to survive.

(Story found in original format here.)

 

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