Full list of Greek Austerity/bailout measures/conditions up to 2015

Full list of Greek Austerity/bailout measures/conditions up to 2015

You find this text on http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script.
http://www.xn--jxafi7ax1b.gr/ is for sale - mail internetavenue@outlook.com

Full list of Greek anti-austerity measures backedn by Greek Parliament you find on above site as well.

Have they been done?
Since publishing this list in May 2010, people wonder if these measures have been carried out as
promised or if Greece is dragging its feet.
Where known, I added a checkmark (√) for items completed. In some cases, it is unclear because
parameters have been announced, revoked and revised dozens of times, and implementation does
not always go forward after official publication when the EU-IMF audit team isn’t looking.

Public sector
All reductions in salaries, benefits and allowances apply to members of Parliament, government
officials and civil servants.
√ • Cut the 13th and 14th ‘doro’ for all public sector employees earning a gross minimum salary of
€3,000/month. Anyone earning below €3000 will receive €250 for Easter, €250 for summer and
€500 at Christmas. If you do not understand what ‘doro’ means, read “Christmas doro” which
explains that these are not bonuses, gifts or extra salaries. Foreign correspondents outside Greece
nearly always get it wrong.
√ • Reduce allowances by 8-20 percent in the public sector and 3 percent in the wider public sector
(utilities, etc.).
• Establish a uniform pay-scale from 2011 (not done, scheduled for June 2012)
√ (so far) • Freeze all public sector salaries until 2014

Private sector
A collective agreement signed July 15 ensures that private sector employees in Greece continue to
receive their annual salaries in 14 payments, with the 13th and 14th ‘doro’ staying separate and not
re-incorporated to 12 payments as originally proposed. There will be no inflationary raise for 2010
and only a 1.5-1.7 percent increase for 2011 and 2012, well below actual inflation currently running
at 5.6 percent and rising.
√ • Assess one-time tax to companies showing a minimum profit of €100,000 from 2009:
– 100,000 – 300,000: 4 percent
– 300,001 – 1,000,000: 6 percent
– 1,000,001 – 5,000,000: 8 percent

1 Full list of Greek Austerity/bailout measures/conditions up to 2015 – see
  http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script – contact
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– 5,000,001 + : 10 percent
√ • Raise lawful redundancy rate, making it possible for employers to reduce staff
– Up to 20 employees: No limit
– Between 20-150 employees: Up to six dismissals a month
– More than 150 employees: Up to 5 percent of staff or 30 dismissals a month
√ • Reduce severance pay, which would also be paid in bimonthly installments instead of a lump-
sum
√ • Shorten the lawful termination notice period from 24 months to one to four months
√ • Young people up to age 21 can qualify for a one-year contract at 80 percent (592 euros) the
minimum wage & IKA contributions, then be integrated with OAED programs upon termination.
Effective July 1, 2011.
• Young people between the age of 15-18 can be hired for 70 percent the minimum wage, which is
518 euros.
√ • Redundant employees can no longer contest dismissal unless ex-employer agrees
√ • First-time employees under age 25 would be paid less than minimum wage
• Self-employed with OAEE, aged 30-65, without work for any reason are covered by insurance for
two (2) years as long as they: a) Worked a minimum of 600 days, plus 120 days for every year over
the age of 30 until reaching 4500 days or 15 years of work; b) are not insured by public sector
insurance carrier.
√ • Open “closed professions” by July 7, 2010. Finally done on July 2, 2011, a year late, but it was
done hastily and without clear parameters so people are confused, and concessions were made to
certain industries.
√ • Cancel second installment of solidarity payments
• IKA contributions by employer and employee to increase 3 percent from 2011. (not done)

Pensions/Retirement
Note that an overhaul of the pension system had been discussed and outlined well before IMF
intervention but was never implemented. Greece has a disproportionate aging population with 2.6
million pensioners, a work force of only 4.4 million — but shrinking by 700 workers/day in the
private sector — and a total population of 11.2 million, causing the state to take loans to keep pace
with monthly payments. This was exacerbated when tens of thousands took retirement before
minimum age requirements were raised. It is estimated that 86 percent of the population will be
financially dependent on the Greek state by 2060 (frightening), unless economic productivity
doubles and birth and immigration rates increase exponentially.
On July 8, 2010, Parliament passed pension reform in principle, after the bill had been amended 50

2 Full list of Greek Austerity/bailout measures/conditions up to 2015 – see
  http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script – contact
internetavenue@outlook.com

times. A summary of the main changes are below, but you are free to view all 77 articles in Greek:
“Άρθρο προς άρθρο το νέο ασφαλιστικό.”
√ • Cut the 13th and 14th ‘doro’ for all pensioners collecting a gross minimum payment of
€2,500/month. Anyone earning below €2,500 will receive €200 for Easter, €200 for summer and
€400 for Christmas. These ‘dora’ are not extra payments, bonuses or vacation pay, as explained in
“Christmas doro.”
√ • Cut the 13th and 14th ‘doro’ and allowances for all pensioners aged under 60, except for
exceptions that include minimum number of contribution years being met and/or having children
under 18 or students up to age 24 in household. These ‘dora’ are not extra payments, bonuses or
vacation pay, as explained in “Christmas doro.”
√ (so far) • Greek pensions frozen through 2013 (many were lowered through taxation and cuts)
√ • Calculate pension payments based on average over entire course of working life; those
qualifying under the old and new system will receive pensions based on the old system through
2010 and on the new system from 2011-2014. In 2015, the minimum pension system will take
effect.
√ • Equalize general retirement age for men and women in both private & public sectors,
announced as 65. Not done until 2011 and conditions keep changing.
√ • Increase retirement age according to life expectancy, starting 2020, and will apply to all sectors
and classifications.
√ (so far) • People may retire at 60 with reduced pensions calculated at 6 percent penalty per year;
or at 65 with a full pension after 40 years of work (not 37 years). Starting 2015, no one under 60
can retire early.
• Workers classified in “heavy” industries or “dangerous professions” can retire at 60 (not 55),
starting January 2011.
√ • Reinstate LAFKA, which will assess a solidarity levy of 3-9 percent on pensions more than
€1400, starting August 1, 2010.
– 1401-1700: 3 percent
– 1701-2300: 5 percent
– 2301-2900: 7 percent
– 2901-3200: 8 percent
– 3201-3500: 9 percent
– More than 3500: 10 percent
√ • People working ‘dangerous’ or ‘heavy’ professions will see the retirement age rise from 55 to
58 60, starting 2011. Amended July 15, 2010.
√ • Raise retirement age for working mothers:
– In private sector: To 55 (not 50) in 2011, age 60 in 2012 and age 65 in 2013.

3 Full list of Greek Austerity/bailout measures/conditions up to 2015 – see
  http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script – contact
internetavenue@outlook.com

– In public sector: To age 53 in 2011, age 56 in 2012, age 59 in 2013, age 62 in 2014 and age 65 in
2015.
– With three children: Can retire at age 50 in 2011, age 55 in 2012 and age 60 in 2013.
√ • Revoke pension of any civil servant younger than 55, who is caught working; cut pension of
any civil servant, aged 55 or older, by 70 percent if caught working and pension is more than
€850/month. Starting 2011.
√ • Limit the transfer of pensions from father/mother to children, according to age and income
criteria, which includes payments to 26,000 unwed/divorced daughters of bank or civil servant
employees; if children are eligible to receive a two-pension transfer, only the highest will be paid
from 2011.
√ • Full pensions can be transferred to widows if death occurred after five years of marriage, he/she
is over 50 and income criteria are met. However, payments will be held for first three years after
date of death.
• Establish guaranteed minimum pension of €360, then add qualifying income and contributions for
everyone over age of 65. Starting 2015, not 2018. Increase to be determined by GDP, inflation and
consumer price index from 2014. (not done yet)
√ • Pension will not exceed 65 percent of one’s monthly income while working. Previously, Greeks
could retire on 96 percent of their salary based on the last and highest paid years of work.
√ • Uninsured can qualify for a minimum pension if he/she is 65, meets income criteria and lived in
Greece for 15 years.
• Merge Greece’s 13 pension funds into three unified funds by 2018 for salaried workers, farmers
and self-employed; public sector workers will be integrated into IKA by 2013. (not done yet)
• Reduce the number of insurance funds serving lawyers, engineers, journalists and doctors. (not
done)
√ • Complete revision of Greek military armed/security forces, including raising the number of
years required to qualify, removing special bonuses and benefits. See “Χακί συντάξεις στα 35
χρόνια υπηρεσίας.”

Taxes
These tax increases took effect July 1, 2010, except where noted.
√ • VAT: All VAT rates were increased 10 percent, so 5 percent is 5.5 percent on books/newspapers;
10 percent is now 11 percent for food; and 21 percent is now 23 percent on goods and services. See
“VAT in Greece” to understand what tax is assessed to which items.
√ • “Sin” tax: All tobacco, alcohol and fuel now subject to an additional 10 percent tax. This is the
third increase since January 2010.

4 Full list of Greek Austerity/bailout measures/conditions up to 2015 – see
  http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script – contact
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√ • Tax on luxury cars (new/used): Calculation of 10-40 percent tax is based on factory and market
value. See “Νέο χαράτσι σε καινούρια και µεταχειρισµένα Ι.Χ.” for details and examples. As of
August 2011, there has been talk of revoking this measure because it didn’t raise the revenue
expected and is hurting several industries.
• TV advertising: All TV advertisements are subject to a 20 percent tax, postponed to 2013 starting
October 2010.
• Online ad tax of 21.5 percent to fund online journalists not covered by a fund thanks to a loophole
(withdrawn)
√ • New withholding tax applies from May 1, 2010 on both private and public sector salaries
√ • Special levy of 1 percent assessed to 50,000 individuals (marital status irrelevant) claiming a
net income of 100,000 or more. Notices were sent June 2010. Those who didn’t pay are now facing
possible jail time as of August 1, 2011.

Sources
“Greek lawmakers to debate austerity bill Tuesday” – WSJ (link removed)
“Greeks hit by new wave of austerity” — Reuters
“Συντάξεις: δεκάλογος ανατροπών” — Ta Nea
“Χάνουν τα δώρα συνταξιούχοι κάτω των 60 ετών” — Eleftherotypia
“Μαχαίρι σε µισθούς και συντάξεις” — Ta Nea
“Μέτρα-σοκ ύψους 30 δισ. ευρώ” — Eleftherotypia
“Καταργούνται δώρα-επιδόµατα των βουλευτών” — Ta Nea
“Πως θα υπολογιστεί η έκτακτη εισφορά στις επιχειρήσεις” — Eleftherotypia
“Η λίστα µε τα νέα µέτρα” — Ta Nea
“Ειδικός φόρος 20% στις τηλεοπτικές διαφηµίσεις” — Eleftherotypia
“Greece’s new austerity measures to qualify for bailout” — Reuters
“Τέλος και για 15.000 ανύπαντρες «κληρονόµους» συντάξεων” — Eleftherotypia
“Οι νέες τιµές σε ποτά – τσιγάρα – καπνό” — Eleftherotypia
“«Εδώ και τώρα» οι ανατιµήσεις σε βενζίνες, ποτά, τσιγάρα, Ι.Χ.” — Eleftherotypia
“Ένα προς ενα τα άρθρα του νοµοσχεδίου για τα νέα µέτρα” — Eleftherotypia
“EU ministers agree to €500 billion emergency fund to save euro” — Guardian
“IMF approves €30 billion as part of biggest bailout in history” — Reuters
“Οι 8 πληγές του Μνηµονίου” (Charts) — Eleftherotypia
“Κανένας πριν από τα 60 στη σύνταξη µετά το 2015” — Ta Nea
“«Ψαλίδι» 5 δισ. ευρώ ετησίως στις συντάξεις µε διαφορικές εξισώσεις” — Eleftherotypia
“Greek cabinet approves pension reforms” — WSJ
“Όλες οι αλλαγές στο Ασφαλιστικό” (Charts: Examples of IKA/OAEE pension calculations) —
Eleftherotypia
“Greece’s pension reform bill” — Reuters
“Tougher pension reform unveiled” — Kathimerini

5 Full list of Greek Austerity/bailout measures/conditions up to 2015 – see
  http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script – contact
internetavenue@outlook.com

“Ανώτατη σύνταξη µε 40 χρόνια” (Charts) — Ta Nea
“Ψαλίδι στις πρόωρες και τις επικουρικές” — Ta Nea
“«Ολοι στα 65 από το 2015» ζητεί η τρόικα” — Ta Nea
“Αναδροµικά από 1η Μαΐου οι αλλαγές σε µισθούς και συντάξεις” — Eleftherotypia
“Νέο σοκ στις συντάξεις” — Ta Nea
“Λυπητερή για 50.000 «έχοντες»” — Ta Nea
“Και νέο µαχαίρι σε µισθούς – συντάξεις” — Ta Nea
“Τριπλό ψαλίδι στις συντάξεις” — Eleftherotypia
“Ο χάρτης των ανατροπών” — Ta Nea
“Περισσότερες απολύσεις – λιγότερες αποζηµιώσεις” — Ta Nea
“Στο «απόσπασµα» οι γυναίκες (Changes pertaining to women)” –Eleftherotypia
“Greece to ease restrictions on layoffs and severance pay” — Forbes/AP (link removed)
“Unwed daughters catch time bomb in pension overhaul” — Bloomberg
“Factbox: Greece prepares pension overhaul” — Reuters
“Greece Sends Pension Overhaul to Parliament as Strike Looms” — Bloomberg
“Τα νέα όρια συνταξιοδότησης” — Ta Nea
“Σύνταξη στα 65 για όλες τις µητέρες” — Ta Nea
“Greece Backs Down from Online Ad Tax” — NY Times
“EC threatens to sue Greece for not opening closed professions by July 7” — eKathimerini
“Συµφωνία για αυξήσεις κόντρα στο µνηµόνιο” — Ta Nea
“Parliament passes laws on salary raises, audits, advertising” (Article removed) — ANA-MPA
“Timeline: Key dates Greece’s debt crisis” — Reuters
http://bit.ly/GRausterity

Credit link: http://livingingreece.gr/2010/05/02/greece-new-austerity-measures/#ixzz3RiWvfuCG

6 Full list of Greek Austerity/bailout measures/conditions up to 2015 – see
  http://www.xn--jxafi7ax1b.gr/ which is drachma.gr in Greek script – contact
internetavenue@outlook.com