The gap between the rich and poor in Greece has increased since the beginning of the crisis, with the poor getting poorer and the rich getting richer, according to a conference organised by the Parliamentary Budget Office this week.
Whereas in 2009 the wealthiest fifth of the population had incomes that were five times higher than the poorest fifth, they now earn 7.5 times more, according to Manos Matsanganis, an associate professor at the Athens University of Economics and Business.
“The poor are now 56 per cent poorer in comparison to those who were in financial difficulty in 2009,” Matsanganis said.
He added that 42 per cent of the population now have incomes that are less than the poverty line – set at 60 per cent of the median household income – as it existed in 2009.
The hardest hit were the unemployed, private-sector workers, a large section of the self-employed and young people. Less affected by the fall in income, he said, were farmers and employees in state-owned utilities.
“The vast majority of the unemployed have been out of work for over 12 months, while only 15 per cent of them are receiving unemployment benefits,” he added. The situation for the elderly has deteriorated significantly in terms of income.
The general climate has been made worse by the reduction in unemployment benefits and the special property tax levied through electricity bills.
Addressing the same conference, Georgia Kaplanoglou, an assistant professor of economics at Athens University, said that the percentage of the population living below the poverty threshold had increased from 19 per cent before the country signed up to the troika austerity memorandum to 28.9 per cent.
She also showed, citing relevant data, that the increase in excise duty on home heating fuel had disproportionately burdened the middle and poorer classes.
Source: enetenglish