Advertisement

Six-Day Working Week 'Will Not Help Greece'

A leading Greek economist has told Sky News that a six-day working week - as requested by Greece's creditors - would not help the country strengthen its battered economy.

Yanis Varoufakis, professor of economics at Athens University, said an extended working week "would not make any difference whatsoever" if it was introduced.

His comments come after Greece's creditors urged the government to introduce drastic labour market reforms - including the possibility of working a six-day week.

A leaked letter from the so-called troika, comprising members from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund, requests that the measures be implemented as part of the conditions of a second bailout.

Both the EC and ECB "declined to comment" about the letter.

But Professor Varoufakis dismissed the proposals, adding that they had misunderstood Greece's economic troubles.

"The problem with the troika is that its diagnosis of the Greek crisis is completely false so all the remedies that they are coming up with are beside the point," he said.

"Greece is an economy in depression - labour costs are very low, but what is even lower is demand for products.

"So firms don't invest and they don't employ."

He said that even if Greeks are forced to work more hours, it will not help the problem of a lack of demand.

"Employers do not employ people simply because they fear there will not be any demand for their products," he said.

"And the more they hear that wages will be going down in real terms, the more they fear that there won't be demand to make the world go round for them."

Inspectors from the troika are currently in Athens to inspect the government's attempts to cut a further 11.6bn euros (£9.1bn) to ensure they receive the next 31.5bn euro (£24.8bn) instalment of the bailout.

Greece's prime minister Antonis Samaras is keen to secure additional time to apply the required austerity measures but the troika has so far said it must deliver on their demands.

Related stories: