Further Reductions in Salaries and Pensions

New additional measures are expected to be announced by the Greek government next November, as long as there are discrepancies in the project signed with the IMF, the European Commission and European Central Bank thus to ensure the proper disbursement of the installments.

The measures call for the reduction of unemployment benefits, price increase in fuel and cigarettes, the complete abolition of Christmas , Easter and holiday pay in the public sector, the decoupling of pensions from inflation, the reduction of social spending, etc.

The Government, as it is committed by the memorandum, try’s to send a message to the inspectors – who are arriving in Athens, in order to draw up the report of July-that they honor the signing and will not hesitate to take the necessary additional measures.

Inside sources say, that informally, consultations on the kind of measures have already been done – which of course focus on revenue and expenditure. According to calculations, revenues, which have to be 58 billion in September will be probably 41 billion.

The hands of the financial staff are tied and cannot avoid implementing it. Denying a dose or delay in payments, would bankrupt the country, since the markets would closed for Greece and Greek banks and will remain so at least until early 2012, as stated in the auditors’ report


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