All-in-one suffering before the German vote

The government intends to pass the measures of the new memorandum in one all-inclusive bill which will include all the spending cuts for 2012 (3.3 billion), the supplementary budget for this year and the provisions relating to wages, labour contracts and competitiveness in the private sector.

However, the lenders are preparing a more rigorous implementation of our country's commitments. Apart from the closed account, lenders want to give money to our country based on monthly progress reports and might reserve a special governing role for the Reichenbach team.

Cuts everywhere

The package of measures to be submitted in parliament includes the unknown measures of 325 million which, according to information from the ministry of Finance, will be saved as follows:

- 100 million euros from Defence spending

- 50 million euros from Health spending

- 100 million euros from the 10 -12% cuts in special payrolls next June

- 75 million euros from further cuts in pensions and social benefits

The supplementary budget for 2012 will also include:

- 1.076 billion in pharmaceutical spending

- 50 million from doctors’ overtime

- 300 million from Defence spending

- 30 million from the elimination of 550 positions of deputy mayors and their employees

- 270 million in consumer and electoral spending, electoral allowances etc.

- 190 million from benefit cuts in remote areas and grants from various ministries

- 400 million from the Public Investment Program

- 200 million through a 15% reduction of pensions in OTE, PPC, banks, etc., with cuts reaching 20% for pensions of 1,200 euros and more

- 50 million through reducing NAT pensions by 7%  

The multibill is being promoted for voting by February 27, which comes before the critical vote in the German parliament. Its enactment is a prerequisite for the activation of the new loan agreement.

Governors instead of a commissioner?

But the new loan agreement paves the way for a stricter supervision of our country by the Troika. In addition to creating a closed account to disburse the money of the Greek loan, the economic team sees the possibility of a permanent delegation from the EU and ECB in Athens, like the one IMF has already installed under Bob Traa.

These plans include the undertaking by the Reichenbach group to issue a monthly review of our country's progress. Whichever solution is chosen, the governor that will emerge will advise on whether Greece has fulfilled its obligations, in order to proceed partially with the release of the subsequent installments of the loans.