Greek Austerity: €9.2B Evaporated from Households Due To Wages Cuts of 25%

Posted by in Economy, Society

While the Troika pressures for further wages cuts in the private sector and lay offs in the public sector, here comes the Greek Labour Minister giving evidence of the dramatic decline in the incomes of the  Greek households. A tremendous amount of €9.2 billion evaporated from the pockets of the Greeks  through the reduction of wages. While the total salaries cost was €36.1 billion euros for 2.74 million employees, the cost estimated for 2012 is 26.8 billion euro.

Labour Minister M. Koutroumanis said that wages fell at 25% per person in 2009 . For 2012 the wages are expected to fall further 7.6% compared to the income of 2011.

Equally immense are the losses for the social security funds due to increasing unemployment and financial difficulties of employers to pay their shares. Greece’s biggest insurance fund IKA has suffered losses of €4.2 billion.  (source: Mega TV)

Troika’s ‘poverty prescription’ to treat Greece’s competitiveness demands 15% wages cuts in the private sector and abolishment of the 13th and 14th salary.