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Meet Greek Austerity...At Long Last
Well it seems the impending maturities of GGBs has forced the Greek's hands as they drag austerity measures into the here and now - and in dramatic manner.
*GREEK PENSION CUT FOR THOSE EARNING MORE THAN EU1,200 A MONTH
*GREECE TO REDUCE TAX-FREE THRESHOLD TO EU5,000 FROM EU8,000
*GREECE TO REDUCE PENSIONS BY 40% FOR THOSE UNDER 55
*GREECE TO CUT WAGES OF 30,000 STATE WORKERS THIS YEAR
*GREECE TO CUT PENSIONS OVER EU1,200 BY 20%: STATEMENT
And we note a helpful comment from Brazil's Mantega...
*MANTEGA SEES NO IMMEDIATE DANGER FOR GREECE
phew!
We will post the full statement as soon as it is released.
Source: Bloomberg
UPDATE: Full Statement Below:
STATEMENT BY MINISTER OF STATE AND GOVERNMENT REPRESENTATIVE Elias Mossialos
The Cabinet now refined the measures that lead to achieving the fiscal targets for 2011 and 2012 and allow the full implementation of the support of the Greek economy by 2014.
The discussions with the Troika will be completed - announced yesterday - after the arrival of the chief in Athens at the beginning of next week.
But it is absolutely essential given the country's strategic choice to make again a financial independent and equal country - member of the eurozone as soon as possible to reach a primary surplus. These options and send to our partners and markets the message that Greece and is willing and able to fulfill its obligations, remaining always the hard core of the euro and the European Union.
Since the Greek people should have a clear view for a number of issues that are the subject of uncontrolled speculation, the Government announced early today the clear framework of critical decisions:
A) The tax-free threshold is placed at 5,000 thousand euro, the average level of member eurozone.
B) The new pay scale - vathmologio is really unified, meritocratic, transparent and fair while giving incentives to increase productivity and efficiency of public administration and its executives.
C) There occurs no reduction in pensions of up to 1,200 euros. To achieve this will be cut 20% of the amount exceeding 1,200 euros in order to ensure proportionality and the internal justice system. Especially for retirees under 55 years until they reach the age of 55, will be cut by 40% portion of the pension that exceeds 1,000 euros.
D) The institution of labor redundancy will be applied to the end of 2011 to qualify for this 30,000 employees in Government and the wider public sector through the application of merit and transparent criteria under the supervision of ASEP to identify the truly overstaffed. This concerns a total of about 3% of workers in the public and broader public sector.
E) The Cabinet also took a series of decisions to promote structural changes and especially privatization, opening the professions and the labor market and the restructuring of the parastatal.
F) The national tax system that will be voted on until October to give a definitive end to a series of injustices and inequalities that prevail for decades and which undermine social cohesion and development of the country.
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Riots in 3....2...1.....
Forget riots.
This is an outright declaration of war by the francogerman (via their puppet G-Pap) banking mafia upon the greek population.
Time for Greece to declare war on SarkoGela.
hoooooly Halooooomi!
Load of bollocks. The wages of public sector workers in Greece is often as much as 30% higher than in Germany. When you actually work in out in terms of wages plus bonus and benefits per hour of work, it's more than double. However, most public sector workers live in urban areas and the rents have risen dramatically, which is why they haven't seen a significant rise in standard of living. Those who own the properties find ways of evading property taxes (you claim the property is unfinished) or paying tax on the rent (through dubious expenses claims).
The problem for the Germans is they cannot intervene on domestic matters, such as tax code and collection standards, so the strategy is to make life unpleasant enough for the average citizen that they demand a change in the culture.
And we thought the Irish got boned.
1000 Euro/month isn't luxury by any means
something Freudian about Greece "remaining the hard core" of Europe
I don't get how the Greek government is still in power? Why have their not been massive recall elections by the population?
Riots serve to unleash anger. It when you don't see riots in situations like these, that's when you should brace youself for outright war.
I am going long 5.45x39 and RGD5
"Woof, woof!!" ~ the greek riot dog
Green for you, sir. Maximum green for Riot Dog.
SLAUGHTER.
Yeah, Riots and then Compliance.
That is exactly how it will play out, here and there.
Keep watching that tv and listening to the spew. Your brain will conform, sooner or later. Or you die.....
Greece is the ant in the realm of elephants. Wait until French banks default in regards to Belgium obligations.
The ratio colleted taxes / GDP is smaller in Greece than in Switzerland. What does this tell us? They pass laws and do not enforce them! So all this austerity is just on paper. Not even Excel savings, only ppt savings....
50% reduction in vaseline use between men and boys.
Peak vaseline?
Has NAMBLA been notified!?!?
"one riot gyro coming up"
Does that come with teargas tzatziki and a molotov to wash it down?
Sweet incentives to live in greece... So about a year from now we'll be replacing the word 'Greece' in the is article with 'USA' right?
40% less food stamps for all.
Yeah, all the people we know collecting $1150 on SSI: dropping down to $1049 immediately!
And Greece is still in the game!
Welcome to Debt Slavery dear Grecians. One might consider a move to Sparta. On second thought, Iceland would be a better move.
Your new overlords(IMFecked) are here with a plan!
If you think going back to the Dracma and taking the hit that way would be better, just ask the Wiemar Germans or the Zimbabweans.
It's going to suck, regardless. But, that would be the only way to get out from the iron grip of the banksters.
Opa!! I'll have some flaming cheese with that
No way
Harcore man, really hard core... grandpas being forced to take a 20% cut and return to the laboral market making 40% less... in the meantime Goldman Sach Greece will raise the Christmas bonuses for the architect of this disaster another 20%
Nobody is taking a 20% haircut. The 20% applies to amounts over 1,200 euros. I would guess many pensioners wont get a cut at all.
This is going to accomplish next to nothing. It's no different than US politicians announcing cuts that sound impressive on the surface, but when digging into the details, aren't cuts at all.
Okay, sure, nobody is going to get a nominal haircut of 20%, but you tell me how Grandpa Milos and his wife Elena, 67, on a 2000 euro pension, will survive with 1840 euros, after he has to pay the new "solidarity tax" on top of all the other taxes, leaving him with around 1400 euros when you are having near double digit inflation in Greece.
Double digit inflation? I would think they'd be suffering from massive deflation?
For food, I am just talking about food...
Yes, but it is a bit difficult to spend significant amounts of money on food! Unless you want to weigh 200kg
Now apply those same cuts to both Congress and the Executive Branch.
Time to come back from sunny beach back to work at least
for few hours a week :)))
Pensions for those UNDER 55????
Are we talking current pension payments or their planned pension payments?
If the first, how many Greeks UNDER 55 are eligible for pensions at this time?
WTF???????????
I think its basically saying if you're under 55 forget about a pension... and if you're not born yet don't bother ;-)
put another way, if your a Greek cop expected to hold back the rioters, it's time to mix gas cocktails in your basement with the peoples.
Must mean - projected pensions for those under 55 or `future entitlements`
After Italy, France Portugal etc etc have all been `bailed out` the above list will be aplied to all the citizens of Europe - in the interests of harmonisation. Except of course the beurocrats in Brussels will not have any of their fantastic, tax free, lifetime benefits reduced - at all.
I don't think so. It means that if you're pushing 55 and think you can retire, think again.
Let's wait for some clarification. The 20% cut on pensions over 1200 Euro is hardcore. I understand the reason behind it but that is a tough decision. That 20% cut is not going to come back into the economy which of course is the double whammy and the crux of all austerity.
i'd screw it and stop paying and accumulating at all
shadow economy will get a huge boost
Work 20 years, retire by 38 with a full pension. Sounds good to me. I could have retired about 20 years ago...
Galen,@13:22
This is COMMON practice for US Police,Fire,Fed,etc,etc,etc....................
Start at 20, retire 100% bennies at 40, and start a second career at 40, for a double dip.
In the U.S you can get a pension much younger than that. Retired Military??
Ahh, finally my vacation to pleasant, quiet and sleepy GREECE!
I smell Greek Bullshit.
Lol, these "words" will/can never be implemented. Anyway, default is postponed to december. This is all political theatre to give ECB/EU time to develop restructuring plan for the Greece (and EU) banking sector. The default will come this year.
just a matter of time until austerity finally makes its way to the US
glad to see all the worlds problems are fixed. what a relief huh?
wait a minute...do you smell that?...what's that smell?...it smells familiar...I'm sure I've smelled this before...yes i do know this smell...it's BULLSHIT!
Time for a coup d'état. What the hell is the greek military doing? Military coups we can believe in.
Busy looking at Turkey who are there to remind them not to screw up the bankers plans.
This all encompassing. You don't just say "haircut" and that's it. You don't just say "drachma" and "opa" and that's it. Should the Greeks revolt, leave the Euro etc. the bankers will make their lives a true, actual and literal hell.
Watch the correlation between how Greeks are progressing with the Troika and Turkish aggression.
Uh ... how is this gonna spur their economy? I know they're broke but these kind of cuts will wreck them.
Those are exactly the cuts to make if you want to rile up certain segments of the population.
Playing next month at theaters; Return of the Drachma
Shhh...don't spoil their dream.
a 40% reduction in pensions for those under 55? Those people are still young enough to do some damage when they riot...
It's a 40% reduction in amounts over 1,000 Euro. So if you get 1,500 euro per (I assume month), you would lose 40% of 500 or 200 euros. You would get 1,300 instead of 1,500.
All in all, i'll bet this is made to sound like a lot, but in reality it's not going to amount to much of a cut at all.
I had gyros today - maybe the last one evar?
*GREECE REDUCE PENSIONS BY 40% FOR THOSE UNDER 55 - USA should learn from this. no ex-fed/state/local employee should get full pension before they reach 65! So they earn pension - fine, collect when everyone else does. that's what they all do - retire @55 (or after 20 years if cops) and collect pensions while working full-time. that's bull-sh*t
Including military.
not all cops are on the beat. I have a neighbor who sat behind a deskk for 20 years and never carried a gun and at 50 + 1 day retired with 90% of his highest yearly salary. Make it 65 for all. He now has another job and has never made so much money in his life.
Saw something similar about a NY cop, who at 42, was retired and collecting just at or over 6 figures and will be for the rest of his life. That is until the system completely breaks down...If someone had sold me that deal I'd have taken it at 20-22 and now I'd be using that money to build another business and dump the remainder on charities...
There is no way to afford that level of pay. It means paying for a little over three cops salaries for one on the job. A little over 2 retired for each one working.
So when the older popo ready to retire can do front line duty during the riots.
Kill five with one nice stone. Get the popo in greece to attack the GS offices. That would be worth pay per view.
Cutting pensions and cutting State employee wages.
That's all they've got. It won't matter. It won't be enough. And they'll still burn for it.
Ah the poor and the pensioners get hit... no bankster was harmed in the process
Does anyone really believe they'll do that?
This means a NICE WEEKEND in Greece folks!
Treason! High Treason!
"GREEK PENSION CUT FOR THOSE EARNING MORE THAN....."
PHEW!! WE'VE SET THE PRECEDENT !! THOSE LIVING on the TAXPAYER DOLE, should see DRAMATIC CUTS to their wages/salaries/pensions (etc) streams...
NOW !! Let's GO BACK, and RETROACTIVELY SIEZE !!!
...all the "BONUSES" of ANY damn banker whose FAILED, BANKRUPT, INSOLVENT banks REQUIRED "bailouts" in the first place !!
Um, no.
Employees and eompoyers in the private sector contributed to those pensions, so it is - as with Social Security - their money being handed over to foreign bankers, NOT taxpayer dole.
Just correcting yet another "Greeks are lazy, unproductive dolemonkeys" misconception.
oh yeah! that place is an economic powerhouse of work-ethic!!
(roll eyes).
Mind you, all this is just to ensure that the deficit target for 2011 is met (which will not be met eventually).
This is not to save Greece from default, or to make it possible to pay 2011 due principal and interests.
This is not austerity, just a few accounting tricks.
Necessity is the mother of invention, but when everything is fucked up, inventions are also of the same denomination.
I'm sure the stats are fine, lol.
It will turn out okay, they'll just make things up as they go. You'll see.
I am doubling down on pitch forks and torches.
unmitigated disaster
greek govt and bank infrastructure fires/explosions in 3, 2, 1...
yep...will they get Papandreau?
Can't believe this won't end up in the streets...better surround the museums with national guard...learn at least one thing from Iraq and the plundering of Baghdad
Greek Parliament, this winter:
http://www.youtube.com/watch?v=unEHgZrHBgQ
The Greek economy cannot recover within the Eurozone.
It must default ....... substantially.
And it must have its own currency.
They won't be buying to many BMWs though.
Or ships for their Navy for that matter.
Greece not in the EU, No money, no ships, government in disarray, daily riots. So I guess that resolves the Cyprus question for all time.
It stays in the EU.
It is a member of NATO.
This is all bullshit--those "cuts" are meaningless, riddled with loopholes, and solve nothing. The document exists only to give cover to the Eurocrats to approve the next tranche of payola...
It's all very, very bullish, doncha know?
Finally. I've been saying that thus far what they call "austerity" I call "minor inconveniences". It was a gross misrepreentation of the word austerity.
By the way, this still isn't "austerity" for the problem they are facing. This is the first small step of major steps that need to be done.
Time for a coup d'etat by the military. Overthrow the government, get the hell out of the EU, jail the bankers.
Then all freedom fighters in Europe rally and purge Europe from the Euro shills and bankers.
The final solution to the debt problems.
You forgot one Tyler
GREEK RIOT POLICE TAKE OVER COUNTRY TO PROMOTE AUSTERITY MEASURES!
When they see their pensions cut they'll be taking over the country to accomplish exactly the opposite.
So all the 54-year olds (and to a lesser extent...even younger) have basically been screwed by the government. This can't possibly go over well.
Riot Dog will be in many photos soon.
Opa!
The funniest thing about all this?
It's coming here.
Don't hold your breath....
So far into the future it doesn't matter..
CUE THE RIOTS....
It's amazing. The power brokers, the ones at the very top, own half the world. Is that enough? Not in the slightest. They want it ALL! A chip here and chunk there. It is going to happen in the good-ol USA too. Social Security? Forget about it. You will work (for them) until you can work "no more." Then you get to polish off your days just trying to get by. Hell, medical coverage will be a thing of the past so you just get to "drop off "a little early. Better for them anyway.
what about 13th and 14th monthly sallary in the year-end? Both in the state and private sector it was a rule of thumb that employees enjoy 13th & 14th sallary apart from bonuses at year-end.
they got so many of their little tricks... that the TROIKA could not possibly know about :))))
Its all show...this will never be implemented until they DO default...and they will....its just how much more money they can steal before they do....another 8 billion....or 80 billion...
Padon. seems the navtives are bit restless today could you pass the grey poupon.
also, a portion, what maybe 30%, of those cuts will not come back as tax revenue as pensioners and civil servants should be one of the few classes of people that pay income tax over there.
…..or they could leave the Euro and begin to print their own debt free sovereign currency again and kick this international banking cartel into the dust bin of history. Just a thought.
On the plus side Greece will retain its sovereignty, be debt free ‘immediately’ and be a great place to grow and build stuff again due to the significant devaluation of its currency for international trade. The downside is that in order to import goods/services of value they will need to export an equivalent market based basket of goods/services in return. Any remaining trade deficit will need to be covered by whatever hard assets like Gold exist in the country until the transition to self-sufficiency is made.
While the transition from where they are now to this more independent, self-sufficient, stable, pay as you go basis won’t be picnic it certainly beats becoming generational debt slaves of ECB Feudal Lord offered up as a ‘solution’ by the kleptocracy.
That austerity is coming can’t be avoided, the only questions is, will it be the austerity of the slave or the austerity of the freeman?
BTW what the Greeks/Germans (plus everyone in between these extremes) are about to experience is coming soon to a nation near you. The serious value generation and fiscal imbalances between and inside of all the nations of the world can’t be avoided or worked out any other way. The only question at this point is how hard the landing will be. The key is to not turn on each other but rather use our collective energy to ‘first’ regain the sovereign power of money for our respective nations. Free markets both internal and external to our respective nations will take care of the rest.
Speaking of hard landings it reminds me of this movie sequence in 300.
http://www.youtube.com/watch?v=-qR0Uke2XNI
?
Hopefully the ECB’s offer of slavery in return for peace will be answered in the same rethorical way.
My guess is that Greece has more than 300 Spartans still left......and as we know from history 300 Spartans is more than sufficient to change the path of human history away from the designs of evil men who would make us all slaves.
...and the people take it on the chin for bad banks and worse government...genius.
Them sound like "Burning Words"...!!!
can anyone step in to Greece and execute these 300 politician motherfckers? they care abt the chair rather than national good
Not just them, but also the many that came begore them and who now are sitting on their ill-gotten gains.
DO YOU ALL KNOW WHAT THEY ARE THINKING USTAIRS.?
IF GREECE GETS AWAY WITH THESE MEASURES, THEN THE USA WILL DO IT NEXT.
Fire the damn civil 'servants' who needs them, they just take away road blocks for money they put in their themselves.
But I'm under 55. Now I'm scared. I couldn't survive, very well, without my full pension.
Does anybody besides me think it is just plain weirdly fucked up that the Greek Fin Min Venizelos is preaching austerity, when that grossly obese (i.e. fat fuck) sob needs to lose about 200 pounds to be able to walk up a flight of stairs without collapsing in a heap?
What a symbol for the banksters! Fucking perfect!
No, the whole global system is weirdly fucked up.
Wonder how this compares to the poor Greeks, and Boomers..............
Only in America, and Chi Town.
And we wonder why Capone is still in charge?
http://www.chicagotribune.com/news/local/ct-met-pensions-legislation-watchdog-20110921,0,4724416.story
This is the FIRST ZH thread that does NOT contain bashing non-politician Greeks for "living the good life on the backs of the rest of the EU". Refreshing!!!! Thank you people... seriously!
You cannot really know how BAD things are turning for the average person here. And, seriously, you would not believe the ammount of misinformation floating (even here) about the reality of the average Greek.
I feel bad for just hoping that other countries will fall in the same downward spiral soon so that we in Greece are not the lone official piniadas of the EU politicians.
Did they also cut pensions for the dead people?
Of course they did. Horizontal cuts do not care if you are alive or dead! :)