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Troika Warns Greece On Public Payroll And Public Mergers

The exception of tax officers from the new public payroll and the delays in public reforms caused the first warnings by the low-ranking troika officials to the Greek government during the preliminary assessment of the country’s fiscal plan.
According to sources, troika officials, who have been scanning the Treasury and the Finance Ministry since Tuesday, appear much milder compared with the review in June. However, they could not get over the “special arrangement” for tax officers, as Deputy Minister Pantelis Economou promised that any benefit losses would be covered by salary increases within 7 years.
The auditors noted that this circumvention could lead to similar demands from other working sectors.
They also expressed dissatisfaction for huge delays in shutdowns and mergers of public organizations. This measure was considered a key term in the Memorandum of Understanding signed in May 2010, but only recently a procedure has been launched for the merger of about 60 organizations.
Audit for deviations in revenue and expenditure was less strict this time for two reasons. Based on the new medium-term objectives, the differences are minor, while the additional measures of €6.7 billion would apply by the end of the year.
Regarding changes in the public sector, the Greek government seeks convincing answers to the senior officials of the troika, arriving next week in Athens.
In this context, FinMin Evangelos Venizelos is meeting with the Minister of Interior Dimitris Reppas to discuss the issue of new single payroll and acceleration of mergers of public organizations. But, most importantly, the two ministers will discuss the issue of job dismissals.
(source: capital)

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