A new Troika Demand? Austerity of €10 Billion In a Single Year?

Posted by in Economy

If it’s true, this is, indeed, insane. According to Ta Nea newspaper, Greece’s lenders’ representatives want that almost the whole package of austerity measures will be implemented in 2013 and won’t be distributed more or less equally to 2013 and 2014.

The new Troika’s request is allegedly that additional 2 billion euro will be inserted in the budget 2013 from the 7.5 billion euro that were planned. That means that citizens will have to undergo austerity of 10 billion euro within a single year.

The overall packages of austerity measures is 11.5 + 2 billion euro for the years 2013 and 2014. That is austerity measures plus 2 billion euro from additional tax revenues.

This demand comes at times when the Greek government plans to raise the issue of extension of implementation of the fiscal program for another two years, until 2016.

“These demands are insane”, a senior source of Finance Ministry told Ta Nea.

“This requirement will not be accepted as it is outside the scope of the agreement of the political leaders. Moreover the Greek economic team does not believe that such an intensive austerity will benefit the economy. On the contrary, the country will plunge into even deeper recession. (TA NEA via in.gr)

I don’t know if this is “outside the scope of the coalition government leaders agreement”. But Greeks and Troikans should better check the Second Bailout Agreement, PASOK and Nea Dimocratia signed in March 2012.

PS Honour  Thy Agreements ….