The Night that rained Measures… New Austerity Measures! tagged: , , , , , ,

The Night that rained Measures… New Austerity Measures!

Posted by keeptalkinggreece in Economy

I know it is depressing to write (and read) about a cracked-down economy on a Friday but more depressing is when you have to live with it. Thursday night, December 9, 2010 will remain in the history of Greece as the night that rained … measures! Shortly before Christmas and while Greeks had been waitiing for snow an avalance hit them collectively right between the eyes. 2011.

Apart from the shake-up in labor reforms  and  the third hike in Value Added Tax  the new package called also the IMF/EU/ECB Second Revised Memorandum Package includes first of all the commitment of the government to set new tax collecting measures. Measures targeting EUR 12 billion are going to be determined next March.

These include among others: a so-called “green” tax for enterprisecs, property taxes, beverages tax hikes, new VAT hikes in 2012, pension freezing, social benefits cuts.

The government promises wider social security reforms that most probably will include changes in basic pensions, closing of deficit-bringing state-run entreprises (DEKO)

Public transportation tickets hikes at leats to € 1,30 (now 1 euro).

Hospital fees from € 3 up to 5 euro.

Still big changes are to come in tax system, labor market, the 100 DEKO, civil servants.

THAT’S HOT: At the same time, EUR 23,900,000,000 (yes! 23,9 billion euro) in overdue debts will be written off as the state considers it won’t be possible to get hold of them (Yeap! you got it right! If you pay your taxes, you are nothing but a stupid dude!)

The new development law gives less money and all in all it is  so complicated as the subventions are wrapped up thorugh the banks that do not show willing to hand out the cash.

Civil servants will have to expect a total revision of payments and employment rates is 1 hiring for 5 pensions.

DEKO employees will face wages cuts 10%-25% , excluded are the wages of  presidents, chairmen and CEO (THAT’S VERY HOT!)

State-run Hellenic Post Bank and Attica bank will be sold. In also state-run Agricultural bank employees’  wages will be cut by 10% if the monthly salaries are over 1,800 euro. Did you know that state-run bank employees receive an extra monthly bonus  for “performing customer services”? (THAT’S HAHA!)

In general, all bank employees will lose their special “labor” benefits and will come under the private sector.

Oh, I almost forgot! The government plans to collect at least 7 billion euros in the next three years from the selling state enterprises.