As It Gets Its Latest European Lifeline, Life In Greece Is About To Get Even Harder

Tyler Durden's picture

A few hours ago, Greek lawmakers approved a reform law to unlock about €8.8 billion of rescue loans from the European Union and the International Monetary Fund. The law, which was a condition for further aid installments, passed easily with the solid backing of the three parties comprising Greece's ruling coalition, by 168 to 123 votes. Next, euro zone officials will meet on Monday to approve overdue payment of 2.8 billion euros ($3.65 billion) in rescue loans, finance minister Yannis Stournaras said. Euro zone finmins will then meet on May 13 to release a further 6 billion euro installment, he added. The use of proceeds? To have enough cash to pay salaries and pensions, and of course to pay Mario Draghi for a bond that matures on May 20. The fact that Europe has gotten the green sign to hand over some pocket change to Greece, so Greece can pay for the maturity on Greek bonds by the ECB was the good news (for someone, unclear exactly who). The bad news, for Greece, starts now.

As BBC reports, some 15,000 state workers will lose their jobs by the end of next year. Naturally, in light of the recent epic backlash against austerity (or fauxterity as penned previously) whose corpse has already promptly been trampled in Spain, and now in Italy, Greece would like to get back on the gravy train as well. Yet they are being denied, and the result is indignation at what the people rightfully see as B-class European citizen treatment.

As MPs debated the measures inside parliament, several hundred demonstrators outside took part in a protest called by Adedy, the civil service trade confederation, and the private sector GSEE union.


They were demonstrating against what the unions called "those politicians who are dismantling the public service and destroying the welfare state".


Critics say the law, which is part of a larger package of measures, will only add to Greece's record unemployment rate of 27%.


They say many of those who will lose their jobs are older workers already struggling to support their families and make ends meet.

It's only downhill from there too. As Kathimerini adds the tax burden for all Greeks is about to go through the roof. Literally:

Besides regular income taxes and numerous other obligations being faced by Greek taxpayers, the taxation of real estate property has become the focus of attention after the ministry’s decision to demand the payment of the 2011 and 2012 property tax (FAP) in seven monthly installments this year.


Taxing property is seen as the only safe and efficient way to boost revenues, given that indirect taxation is bringing ever-smaller amounts of money into state coffers due to the drop in consumption. In this context, the fiscal adjustment as far as revenues are concerned this year will rely on taxing property.


The measures of the multi-bill are projected to generate an additional 5.9 billion euros in state revenues for the period from 2013 to 2017. The state stands to gain in excess of 6 billion euros from the measures with the addition of a planned increase in teachers’ working hours that is expected to save 103 million euros from the budget spending of 2013 and 2014.


The settlement of debts to tax authorities is expected to fetch 2.73 billion euros in these five years; the application of the extraordinary special property levy, to be paid again this year through electricity bills, will bring in an estimated 1.9 billion euros; the settlement of debts to the social security funds will result in the collection of 795 million euros in the period from 2013 to 2016 according to labor industry estimates; and the extraordinary levy on photovoltaic systems will add 490 million euros this and next year to state revenues.


The property tax to be paid again via power bills will be broken down in five installments, with the last due in February 2014. Its rate will be 15 percent lower than in the two previous years, as the number of properties to be taxed has grown considerably with the inclusion of properties rented to the state, 17 percent of the surface of camping enterprises and even unfinished buildings that are connected to the power grid.

What this means, logically, is that tax revenues in Greece are about to go inversely parabolic as even more resentment builds against austerity, as increasingly less people pay any taxes, and as more workers migrate to the shadow "cash-based" economy, where no taxes are paid at all.

In fact, that is already starting. As the Greek Finance Ministry reported earlier today, after reporting better than expected tax revenues in January and February (+1.8% and +7.8% above target, respectively), March tax revenues plunged, missing the Troika target by a massive 9.3%. Prepare the negative misses to get worse and worse.

Of course, where things get really funny is that as the Finance Minister (not the one with the Swiss bank account, the current one) reported, should the Greek recession prove to be worse than forecast, no new austerity measures would be imposed.

And just like that, Greek GDP craters by 100% in 5....4...3....

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kliguy38's picture

GL Greeks you are going down the proverbial shit hole and no one gives a shit.......get off the ship now

Thomas's picture

They should default but they won't because the EU has purchased their politicians. They will vote to send Greece down the drain of debt servitude. This is how social unrest gets fomented. Europe may go medieval soon--figuratively and literally.

surf0766's picture

Social unrest will never happen. People across the globe don't have the balls or are not smart enough to know when they are getting screwed.

PhilofOz's picture

Those in control will always give them just enough to ensure otherwise, and not a bit more. 

Kirk2NCC1701's picture

"will go Medieval..." Yes indeed, an analyst after my own heart... Simplicity, clarity.

Get ready for Feudalism 2.0.

For those less familiar with history, the power Elites leveraged the spiritual elite and the elite money lenders. Or was it the other way around? Well, it was an unholy trinity that pretended to be holy. Just like today.

Get ready for the same, after a 100 years rest & reorganization: The power and money elite have swapped places, and the MSM have become the Latter Day priests, priestesses and ministers.

Serf's up!

Ghordius's picture

this one is a gem, can't resist, particularly because usually Thomas delivers quite intelligent remarks

"(1) They should default but they won't because the EU has purchased their politicians. (2) They will vote to send Greece down the drain of debt servitude. (3) This is how social unrest gets fomented. (4)Europe may go medieval soon--figuratively and literally."

to (1): why don't you get your country to default instead of (imperialistically) demanding foreigners to do it? Does it dawn to anybody that currently there is no majority in Greece in favour of defaulting (and facing the consequences, btw)? Further, what is this EU you are talking about? The EU Parliament? The Council? both? Do you imply they have an official-inofficial slush fund to pay for Greek politicians? And what is the "EU gain" in this? or is it the... banks? which ones?

(2) who will vote? the EU parliament? the Concil? both?

aren't (3) and (4) all about what is happening in the US and in part in the UK? As far as I know "debt servitude" in the way I understand it, i.e. laws not permitting people to default on certain debts have been legislated only in Greece and... in the US. This list might be incomplete, but this only to show the casual use of the "debt servitude" meme

Boondocker's picture

Why bother to read this. ..same BS different day.  When the shooting really starts, call me.

kchrisc's picture

The poor Greek sheeple--either become a German protectorate or a Russian one.        hujel

Wile-E-Coyote's picture

Someone needs to invent the hungar index. Direct corelation between empty stomachs and violence - revolution. The tipping point can be called the "Let them eat cake", event horizon.

Freddie's picture

Sounds like Hope & Change.  27% unemployment.  Getting close. 

Divine Wind's picture




Last time I was in Athens the Plaka was hoppin. Between there and parties at the U.S. Embassy, I had a great time.

Somehow I think things are no longer the same.

obessoligarch's picture

well probably not....but another type of enterteinment flourishes too.

Freddie's picture

The State Dept.  Useless govt f**ks loaded with CIA operatives.  Wht a waste of taxpayer money.

Kamehameha's picture

usually with the zero hedge pieces you want to read the last paragraph first to see if there is anything actually said in the article.  The writing style and logic flows from back to front.

observer007's picture

Germany: New Golden Mark?

 The cause of the euro debt crisis is the misconstruction of the euro that allows all members of the European Monetary Union (EMU), currently 17 sovereign nations, to print euros and force them on all other members. Germany is on the verge of seeing its capital base plundered from the inevitable dynamics of this tragedy of the commons. It should leave the EMU, reinstate the deutsche mark (DM), and anchor it to gold.

syntaxterror's picture

"As BBC reports, some 15,000 state workers will lose their jobs by the end of next year."

Those 15,000 state workers have been about to lose their jobs for the last 4 years.

Freddie's picture

Govt workers, cops, teachers and firemen.  Children and families will suffer mass starvation before politicians ever touch this protected class or even cut 5% of ther salary.

Ban KKiller's picture

"Self Rule" is long gone. Nice when the banks can take over a country with out firing a shot. Welcome to the new world order. What can the people do? Black market! Which, by 2020, will be bigger than the "free market" we seem to have now. By "free" I mean totally controlled by BANKS. 

gorillaonyourback's picture

Think about this let them take fiat momey out of everyones bank account maybe then people will get a clue and keep their savings in physical gold and silver

SilverRhino's picture

People already are.   I've had several friends who apparently have seen the light lately and are asking where to buy silver and gold now.    

The 400% run up in ammo has a few scrambling for duplex loads and reloading equipment as well.    Long WC 860 / 870 / 872.  :-) 

espirit's picture

Also, casting molds and accessories have evaporated.

Much like PM's, how much would you pay to own?

ziggy59's picture

Ditto!.. Took only 7 years for some, but still time to polish the stash yet to be acquired...

americanspirit's picture

All that ammo being stashed and not one round in a politician's or banker's head. What's the point?

vote_libertarian_party's picture

I can't find the story now but 2-3 days ago in Yahoo Finance they had a story where the Greek PM said although they will lay-off 15,000 workers, not to worry, they will be hiring just as many also.


So that is the Greek deal.  Oh we'll layoff 15,000.  We didn't say anything about not hiring them right back.  GIVE MY MONEY (my cousin needs his civil servant check)

yogibear's picture

"We didn't say anything about not hiring them right back"

When you have Euro-suckers" do a sales pich let then cut you a check and do nothing.

Freddie's picture

It is worse than that.  Supposed a few years ago the Greeks fired 10,000 or some number close to that.  They got full lifetime pensions and hired 10,000 new drones.

W T F II's picture

Does anyone realize that not only does Greece keep adding debt extensions upon it's extensions, but that Greece also has pro-rata responsibilities to the ESM..?? The ultimate in reverse compounding..!!

A sick joke in every way imaginable.

ps. Whatever happened to Venizelos' list of tax-cheats that LaGarde handed him over three years ago..??

pps How do you know that the 'current' Finance Minister DOESN'T have a "Swiss bank account"..?

ppps You really cannot make this s#!t up..!!

W T F II's picture

A simple 5% sur-charge tax on all Greek cafe's and diner's Worldwide would put Greece in surplus rather quickly...

potlatch's picture



all it needs is to pick what color ribbon... ah yes, the sky pale blue of the greek flag.


"I'm running a marathon for Greece, what are *you* doing?"

"Organizing a flash mob with topless Greek waitresses."

"Sweet, see you at the Occupy site."

Divine Wind's picture



Never forget the comments of Mr. Panos on the Greek Financial Crisis

ziggy59's picture

And the money for Greece et al is coming from ..?

LetThemEatRand's picture

You didn't break that.  But you're sure as hell going to pay for it.

Monedas's picture

Governments are like skid marks .... it is not in their nature .... to get smaller !

yogibear's picture

Lost count of the bailout number. Rescue to infinity.

Greece, EU won't kick you out. It would be embarrassing to some EU bureaucrats.

Drain the EU for all the money you can. 

monopoly's picture

I do not understand why the citizens of Greece are not rebeliiing in mass and printing Drachmas. Makes no sense at all. Forget all the loans to the ECB, wipe them out. Start over,, yes, there will be a lot of pain. But at least you have your country back as opposed to being a debt Slave for Angela and her gang.

Kirk2NCC1701's picture

Because when all is said and done, they mean to use Greece as a prototype and birthplace for the New World Order: With Greece's elite stepping in and "having to save Greece", in a manner that will cause the masses to actually welcome the peace and new beginning.

Thus it will be repeated elsewhere.

news printer's picture

Another success,

help me out - which one ?

syntaxterror's picture

Greece was going cut those 15,000 state workers in February of 2012:

"Despite new evidence of a deteriorating economy, Greece said on Monday that it would cut 15,000 state jobs this year as part of new austerity measures it intends to adopt to secure new debt agreements from international lenders."

Oh, wait, Greece was going to lay off 30,000 state workers in 2011:

"The cabinet was due to meet on Sunday evening to discuss a plan to begin layoffs by setting up a "labor reserve." Under the plan, 30,000 workers would be put in the reserve by the end of this year and paid 60 percent of their salaries for a year, after which they would be dismissed."


Extend and fucking pretend. The only bigger master is King Hussein himself.

Freddie's picture

Notice how the leftist media like NY Times and Huff PO (alomost all media is shit especially ALL TV) make laying off govt workers like the most evil thing anyone could ever contemplate?

Throwing live aborted babies into a toilet like the Doctor in Philly is pretty cool but laying off govt workers (even if it is pretend)  is worse that mass murder.  

The govt workers like evil banksters are doing God's work.  LOL!  Godless & evil people talking about God's work.  What irony.

Youri Carma's picture

Greece Suicided or should we say Austeritizised!

Kirk2NCC1701's picture

TPTB in the West mean to take over. Whether by hook or by crook. Whether peacefully or by violence.

For all intends and purposes, they might as well be malicious space aliens. In a manner of speaking, these self-chosen entities ARE aliens with an alien god.

steve from virginia's picture




As long as one car runs in Greece ... its descent will continue. The entire country will be permanently destroyed, its citizens will 'exist' like hunted things ... in the shadows ... as the rest of the world falls.


It's happening right now under everyone's noses and people don't understand ... they don't want to.


'Revenue shortfalls' => insolvency => bankruptcy => collapse => total ruin/failed state status. There are no 'adjustments' to credit or money that can prevent Greece's annihilation.

Jack Burton's picture

Greece is now being shaken down by international banking. It looks to be going to take decades of this austerity and high taxes to even hold Greece out of default let alone pay off the debts. This is simply the complete subjugation of a nation to a higher dictatorial ruler. i.e. The EU dictatorship in Brussels, which is a wholly owned tool of interenational banking.

Right now, Spain is sinking into a Greece like situation. Spain is not fixed, it is not even stabilized. It's bailout laws must be rammed through and the austerity and taxes like Greece will be imposed. The banks must be paid, the EU dictators in Brussels will enforce the will of international banking on Spain. Portugal is in the same boat as Spain, if not worse.

One by one the smaller nations of the EU are being crushed and conquered by Brussels at the orders of the world banking elites. The big one is coming soon. France will collapse under it's socialist government and be replaced by a Brussels dictatorship that will enforce the austerity and taxes needed to pay the banks.

Last but not least, the UK is probably the sickest nation in Europe. Their ability to money print has kept them afloat. But the Pound is headed for a collapse. The UK economy is imploding. The mass of unhappy immigrants are already roaming the streets looking for trouble. Just reduce the benefits handouts to a few million recent immigrants, many of whom are Muslim and radical, then stand back and watch the London riots part 2. Only this time the guns come out, on both sides. Bodies will stack up fast. Immigrants are restless as they feel UK taxpayers are not handing over enough money to them. The fuse will be lit by benefits cut, this will explode the immigrants bubble that has built up since New Labour opened the borders of the UK and the EU ordered Open Borders as part of EU dictates.

potlatch's picture

(lights cigarette) "was it good for you too, baby?"

smacker's picture

Hilarious stuff and a lot of truth in there, Jack.

I'm not too sure who owns the EU dictatorship in Brussels, whether it's international banking as you say, or simply that it's been hijacked (or was always intended to be) by commies & fascists like Barroso & Rompuy and the Frogs (who've always been a driving force). They all have their own agenda to create the United States of Europe. As many people have said, there is a huge amount of political capital tied up in the EU and these asswipes will not let it go without doing anything possible to save it, including wiping out their middle classes and destroying the economies and societies of member states. In fact, these latter consequences may be the intention of some people in the EU. These people are no less dangerous than Stalin and Hitler, and many other lunatic dictators of the last century. The main difference being that today they wear Armani suits and dine in the best restaurants (all at our expense). Tony Blair is one excellent example of the new breed of 21st century fascist that has emerged.

On the UK...whatever the current political elites say, the truth is that very little genuine austerity is being implemented. Welfare is not being cut by anything close to what's necessary to balance the budget and very little cuts are being made to the huge cost of government itself. The latter should always have been the first place to begin cutting costs but politicians don't like doing that.

And if there were 100,000 people rioting on the streets of London, you would never find a common cause amongst them. A majority would be rioting to stop welfare cutbacks (and by extension to raise taxes on "the rich" to pay for it), many would simply be along for the free goodies stolen from shops and a tiny handful would be rioting for smaller government and a return to freedom and individualism. Meaning that socialism is well entrenched in Britain. Government is expert at playing its cards and has so far avoided taking the blame for economic collapse.

Freddie's picture

Just remember these govt marxists and banksters in EU and USA envy (communist) China. 

1. Central Planning - we love it.

2. Steal farmers land for the state (really our friends) - love it.

3. Slavery of women for sex rings - Senator Bob Menendez (D) NJ is all for it. 

4. Organ harvesting of dissidents who speak up & are shot -  It could reduce the defecit and help education.

smacker's picture


I've heard a few people say that the West spent 60 years trying to destroy the Eastern Bloc, only to take over where it left off, after it collapsed.

As one Mr Edward Griffin has said (paraphrased) "totalitarians call themselves whatever they like to imply different ideologies. But they're all the same. The wars they fight are not really about different ideologies at all, but about which gang of elites gains control." Hence the frequent claims that Communism and Fascism are two cheeks of the same ass with very little between them...