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Troika’s Tsunami of 20 Additional Austerity Measures To Sweep Greeks

A real tsunami of austerity measures with massive layoffs, additional tax hikes, further  pensions, wages and social benefits cuts, dozens of painful interventions and structural reforms, is being prepared by Greece’s lenders in order to collect 13 billion euro in the period 2012-2015. According to economic news portal Capital.gr, these measures that will need the written commitment of the leaders of the political parties are a precondition so that the Troika will release the next aid tranche for Greece and proceed to the second bailout agreement. The next aid tranche, due in February, amounts 80 billion euro. The Troika pressures for the signing of two new “Memorandum of Understanding” – loan agreements- (one in March, one in June) in order to release the next aid tranche.

The Troika representatives are currently in Athens and will hold meetings with the prime minister, the government ministers and all possible relevant bodies over the next days in order to close the issue.

Most of the measures have been accepted by Greece in the revised MoU and additional agreements, however Greece is slow in applying them. The target of the Troika is to definetely close the budget hole of 13 billion euros must definitely:

Specifically the measures will be:

1. Restructuring of the public sector at central and local  level. Reportedly revenues of at least 5 billion euros are expected from this intervention. It looks as if massive layoffs  would be due.

2. Interventions to the specific wage rates of academics, judicial, military and security forces.

3. Changing the VAT refund scheme for farmers.

4. Cancel the heating allowance  at least for 2012.

5. New taxation bill that would include some reductions in selected tax rates and elimination of tax exemptions and special regimes, removal of reduced VAT rates, simplifying property taxes, and closing of 200 tax offices by the end of 2012.

6. Padlocks or mergers for 11 large public companies and 35 smaller ones.

7. Measure equivalent of ‘labour reserve that ensures the rule 1 recruitment to 10 departures in the public sector.

8. Commitment to sell all the shares held by the state to utilities, ports and banks. The goal of privatization is 22 billion euro by 2015.

9. Complete the negotiations with social partners to Conclude National Tripartite Agreement, including wages, lower wages, the National Collective Agreement and the non-wage labor costs, including social insurance.

10. Plan for the settlement of arrears of more than 6.7 billion euro.

11. Further reduction in spending on hospital care and medicines.

12. Adoption of reforms to supplementary pensions and compensation in the public sector.

13. Decreases in basic pensions for farmers (OGA insurance fund), lowering the limits of pensions of other social security funds and tightening the pension criteria according to permanent residence.

14. Interventions in welfare benefits.

15. New criteria for disability, that will limit the number of recipients in a total of 10 percent.

16. New intervention in the pensions.

17. Decreases in defense spending.

18. Increases in revenues from tolls, fares, fees, royalties and other revenue sources.

19. Report on the operation of scheduled passenger transport (KTEL) which will present options for their “liberation”.

20. Clear political commitment by the parties to implement the measures.

PS And they happily lived ever after. The Troika successfully survived the MoU and the measures, the Greeks found peace on their death beds.

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5 comments

  1. They better read before they sign

  2. Why change the habits of a lifetime

  3. 8. Commitment to sell all the shares held by the state to utilities, ports and banks. The goal of privatization is 22 billion euro by 2015.
    KTG, I wonder why,because we see and hear this alot,why trioka is so insistant on these particular privatizations. Who would be able to buy them? Just us Greeks or anyone like Germany or France? These are vital national security issues especially the ports. Like Jackie says I hope they read it before they sign it.

    • privatizations ar ethought so there will be state revenues. no wonder Troika wants to dump the wages, so their investor friends (Greece’s lenders)get cheap labour workers. on the other hand , state-run enterprises DEKO have suffered immense losse sin the Athens Stock Exchange. If that’s not a plan to buy Greece for a piece of bread, I don;t know what a plan could be.

      • My theory is this. As everything here, the status of DEKOs is enshrined in the Constitution. All kind of crazy rules and regulations and salary structures around DEKOs can not be changed because of that. And so they keep on haemorrhaging public money. The only quick way to stop this is by privatizing them and get rid of that status by either selling them or closing them down. Closing PPC and ports is no option. So selling them is the next best thing.
        This would not be needed if: 1. Not every crazy rule was put into the constitution in the past. And 2. Greek politicians were able to sit together and hammer out the rules and regulations that should be changed or cut from the constitution. But because they can’t and won’t outsiders will do this for them.