The Mini Memorandum of Understanding that keeps busy Papademos and the leaders of the three parties forming his coalition government since five hours, contains some shocking austerity measures that will impoverish masses of the population form one month to the next.
Troika proposed that the minimum wage will go down at -22%. That is the minimum wage of €751 gross will get down to €586 , i.e. a nett of some 470 euro per month!
For young employees until 25 years old the wages will suffer a further cut of -10%. Young ones would be happy to work at least 8 hours per day and get what? 350 euro nett at the end of the month.
Lowering the minimum wages will have fatal impact for the next years as well, as the new wages will be combined with ‘freezing’, translated into no hikes for every 3 years.
Somebody who would start to work with the minimum wage of €590, after ten years will earn the super salary of €760.
PS I’ll post more on this particular issue tomorrow.
PS2: I apologize for the mistakes in this post, as some reader mentioned. It’s later and KTG is shocked by the measures anyway.