Meet Greek Austerity...At Long Last

Tyler Durden's picture

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.