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What happens then? The government undertakes reforms, defined by some left-minded analysts as a “social carnage”. The unemployment benefits were cut, as well as the time of their payment, wages and pensions were frozen, the retirement age was increased, the labour market was liberalised to allow more flexible part-time work, the rights of the trade unions in collective bargaining were decreased. At the same time, the tax burden was reduced to stimulate business. In other words - a Thatcherism, as the opponents of the reforms liked to call these painful measures.
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