The Greek government presented its 2012 draft budget to Parliament today which includes the cutting of 30,000 civil service staff by the end of December.
During a cabinet meeting yesterday, chaired by Greek Prime Minister George Papandreou, it was decided that by the year’s end up to 30,000 Greek civil servants will be placed on partial pay of 60% of their current monthly wage for 12 months.
Greece needs to convince the IMF, EU and the European Central Bank of the disbursement of the next eight-billion-euro bail-out installment to avoid default.
The Greek government spokesman Elias Mossialos underlined in a statement released after the end of the cabinet meeting,that Greece will save about 300 million euros (401.64 million U.S. dollars) from this shrinking of the public sector.
According to local analysts, the Greek cabinet’s latest steps could pave the way for the disbursement this month of the sixth tranche of a multi-billion euro rescue package in order Greece to pull through and not face a default.
Without the 8 billion euros, the eurozone member country could go bankrupt by this November with major repercussions for Europe and the world.
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