Government agrees to more labor market reforms as part of deal with troika

Employers will be able to offer young people monthly salaries of less than 600 euros as part of labor market reforms that the government has agreed with the European Union and the International Monetary Fund, according to sources.

This was demanded by the troika. Along with other things (that I'll write about as soon as possible) that will make your blood curl (and should, Greece is a testing ground for the rest of the EU, run by fiscal Mengeles)...

Irish Times: Trichet calls for EU finance ministry (June 3, 2011)

First, the context:

Mr Trichet's proposals - carefully phrased as hypothetical ideas - came in a speech in Aachen yesterday where he was awarded the prestigious Karlspreis for services to European unity.

That would be the Charlemagne price, for the German-impaired. So, what vision does Trichet have for the future of the EU?

"Would it go too far if we envisaged . . . giving euro area authorities a much deeper and authoritative, say in the formation of the country's economic policies if these go harmfully astray?" asked Mr Trichet, suggesting "a direct influence, well over and above the reinforced surveillance that is presently envisaged?"

Yes, actually, that would go too far.

In Mr Trichet's view, this EU finance ministry need not administer a budget but monitor directly fiscal and competitiveness policies. This ministry could ensure closer integration of financial services across the EU and sit on boards of international financial institutions.

Of course not, an EU budget could actually be put to useful use. Much better to have the authority to go in and impose austerity directly by overruling the parliament.

ECB chief economist Jürgen Stark, in an interview with Italy's Il Sore 24 Ore, repeated the suggestion of external budgetary intervention. "If countries in difficulty do not introduce the necessary adjustment measures, then interfering in their national policy could be a necessary way of ensuring the correct functioning of monetary union," said Mr Stark.

Little Mengeles, setting up the position of Economic Mengele in Chief.

Economics is politics by other means