Post date: May 26, 2012 2:52:34 PM
ATHENS, GREECE (MAY 26 2012) (REUTERS) - Greeks reacted on Saturday (May 26) mostly angrily, to comments by the head of the IMF in a British newspaper over the widespread tax evasion in the country.
Greeks react, mostly angrily, after IMF chief Christine Lagarde criticizes Greeks for not paying taxes.
International Monetary Fund chief Christine Lagarde reprimanded Greeks in an interview published in a British newspaper on Friday (May 25) for being guilty of tax evasion and not paying their taxes as they now suffer through an economic crisis.
Lagarde told Britain's Guardian newspaper she has to tell poor countries with per capita incomes of three to five thousand dollars per year to cut their budgets, poor countries who have no or inadequate health care or education, while at the same time Greeks have been evading taxes for years.
According to an excerpt from the Guardian Newspaper article, when asked what she thinks about when people in Greece suffer from a lack of social services or health care as economic reforms are imposed, she said:
"No, I think more of the little kids from a school in a little village in Niger who get teaching two hours a day, sharing one chair for three of them, and who are very keen to get an education. I have them in my mind all the time. Because I think they need even more help than the people in Athens," said Lagarde according to the Guardian, adding: "Do you know what? As far as Athens is concerned, I also think about all those people who are trying to escape tax all the time. All these people in Greece who are trying to escape tax."
She continued to say Greek people should help themselves by paying their taxes.
The economic crisis that erupted in 2010 revealed that a large majority of Greeks were not paying their taxes, with only employees and pensioners regularly paying tax. The government introduced a large crackdown on tax evasion which revealed millions of unpaid taxes were owed, and began to penalize evaders to fill state coffers. It also imposed more taxes as part of reforms.
Some commented that Lagarde should come see how they live.
"Ms. Lagarde needs to come visit the people, and not the politicians, so she can see whether we are hungry, how often we work, and what we have paid the state. Because when my husband has worked for 40 years and paid his dues he has the right to a decent pension, it should not be cut. And they should not be increasing our taxes when we cannot pay them with the pensions we receive." said Kaity Lianou, 66.
"I started out with a pension of 1,780 euros. Now I make 1,220. What am I supposed to say to my child which is handicapped? That Ms. Lagarde is conducting experiments at my sake?" said George, a retired air plane mechanic.
"Those two to three thousand people that have committed suicide, for what are they to blame?" said George Maletskas, a cafe owner.
Others were resigned to the fact that there is a problem in Greece with tax avoidance, but added that it was no secret among politicians in and out of Greece.
"I believe that yes there is a part of society that has to pay up at some point, a problem does exist. Politicians need to deal with this radically from its core," said Andreas, 66.
"Yes unfortunately it exists, but is she realizing it now?" said civil servant Christina Asimaki, referring to Lagarde, adding, "She must have known it for a long time, its not something new. I don't think she is suddenly just mentioning it now by chance, she knew what was going on, as did the (other) politicians."
One man criticized the comparison to poorer countries.
"We are not saying that we are not pleased that we are better off than others, but we are trying to improve ourselves," said doctor Leonidas Papapavlou.
Greece goes to a repeat poll on June 17 which has pitched parties against each other over the economic reforms that have also cut wages, jobs, pensions, benefits and increased taxes. The reforms were introduced to reduce the country's ailing debt and needed in order for Greece to be given aid twice by the European Union and IMF, but have also caused recession and high unemployment.
A first poll on May 6 did not produce a clear winner and parties disagreeing over austerity could not form a coalition. The political instability has mounted concerns over whether Greece would have a future in the euro zone if it could not continue to implement the economic reforms. A majority of the public wants to stay in the euro zone but disagrees with the austerity measures which have increased unemployment, reduced standards of living, and deepened the recession, causing thousands of businesses to close.
Euro zone partners have said Greece must stick to the reforms.