Greek Budget Cut Plan in Troika's Hands

While details of a 13.5 billion euros ($17.34 billion) plan to cut spending and raise revenues haven’t yet been made available to the public, the package is reportedly in the hands of envoys from international lenders who have to sign off before releasing more aid to Greece.
Officials from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) were provided with the list, the newspaper Kathimerini reported, to prepare them for talks with the uneasy coalition government headed by New Democracy Prime Minister Antonis Samaras.
Troika officials are due to return to Athens on Sept. 30 and renew negotiations the next day, and reportedly already have some reservations about government projections of savings and cuts. Samaras got his partners, the PASOK Socialists of Evangelos Venizelos and Democratic Left chief to back off their opposition to some of the harshest measures, aimed at workers, pensioners and the poor.
The package of 10.5 billion euros ($13.48 billion) in cuts and 2.9 billion euros ($3.72 billion) in new taxes, also foresees 4.5 billion euros ($5.78 billion) in reductions to pensions. Of the total cuts, 7.6 billion euros ($9.76 billion) will be implemented next year and the remainder in 2014, the newspaper said. This year’s measures are expected to be unveiled on Oct. 1.
The draft austerity package also foresees 15,000 layoffs in the civil service through the merging and abolition of state organizations and a process of evaluating public functionaries. Venizelos and Kouvelis had vowed to stand steadfast against layoffs, but have apparently relented.
Initial proposals for cutbacks in the health and defense sectors and to local authority funding were scaled back after Troika officials reportedly expressed skepticism about their enforceability. For instance, municipal funding is to be reduced by 298 million euros ($382.76 million) rather than the original proposal of 736 million ($945.35 million,) while defense cutbacks are to reach 403 million euros ($517.63 million) rather than the original 504 million, ($647.36 million).
The enforceability of the austerity measures is to be discussed during talks between Troika envoys who are set to meet with Finance Minister Yannis Stournaras first before meeting  Samaras and possibly also with Venizelos and Kouvelis.
Once the measures get the green light from the Troika they must be voted through Parliament that the government easily controls, although it appears it won’t happen before a meeting of Eurozone finance ministers on Oct. 8.