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New Economic Measures of 3 Billion Euros

The Greek government will have to decide on new measures requiring up to 3 billion euros within the next 15 to 20 days, until the return of troika to Greece, the final report of which will determine the 32 billion tranche of September, Protothema reported.
According to Finance Minister Y. Stournaras, in Monday’s Eurogroup conference, the eurozone ministers were inflexible in terms of implementing the measures for Greece in 2012. The 3 billion can include the revenue from privatizations to be made no later than the end of the year. According to information some of these measures are:
– special payrolls for judges, academics, state doctors, at a 12% reduction. The saved amount can even reach 1 billion euros if the measure includes military personnel. The government is looking for an alternative equivalent measure but so far is unable to find it
– additional pension cuts of 300 million euros
– 500 million cuts in pharmaceutical costs to insurance funds
– mature privatizations like Laika Lacheia SA, IBC, DEPA and DESFA. Their sale could even bring over 1 billion euros by the end of the year. Additionally, if Elliniko is sold as well, then the final amount may be considerably higher
The Finance minister said yesterday that “they allow us to take equivalent measures, but not all of them are easy, or even acceptable. I emphasized the recession. It creates a huge social problem (unemployment) and affects the program΄s effectiveness. We will be able to meet their targets in absolute terms, but not as a percentage of GDP.
“I did not officially speak of an extension, but told them we will implement it when we get a positive assessment from troika. The problem with the extension is that it requires additional funding.
They understand us, but nobody pledged that they will accept it. We will ask for 2 years. There was as much debate on how to meet our needs until September. There was a commitment that they will be covered. My first concern is to ensure the mid-term financing to get the next tranche of 31 billion euros.”
He also said that the Greek government wants to save 11.5 billion in 2013 and 2014. “We will fight to receive such measures in doses. I do not want to create unrealistic expectations. Our partners have been very hard for 2012. We need 3.5 billion now. In 2012, the recession should be slightly below 7%. For 2012 they are absolute.”
The Finance minister added that the troika will return to Greece on July 24 and the Greek government will discuss the possibility of replacing some measures with others of an equivalent effect, in terms of deficit impact. Stournaras spoke about the extent of the reduction of the special payroll, suggesting that the government would like to replace it, provided that troika would agree to it.
(source: protothema, Capital)

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