Mr. Papakonstantinou's “riddle” for additional 2-billion-euro measures

Servaz DeRoose's report on behalf of the Troika, was characterized as positive by Minister of Finance George Papakonstantinou. The report contains the possibility of prolonging the period of loan payments and the introduction of new loans. The Minister clarified that the Greek government is staying focused on its targets and its duty, which is primarily the reduction of the deficit.

Mr. Papakonstantinou attended a press conference after the members of the Troika had departed Athens, and described the big challenges that the government has promised to overcome. They entail major intervention and a reshuffling of salaries in both the public and the private sector, in Public Corporations and Organizations, in healthcare and the fight against tax evasion. He also confirmed that there will be additional measures taken in the near future, amounting to an extra 1% of the GDP (at least two billion Euros), besides the pre-planned measures included in the Memorandum, which amount to 4% of the GDP.

Also included in the primary concerns and aims of the government in the time between now and mid-2011, are the mergers and revocations of branches of the public sector, which hints to an undeniable possibility of layoffs. As the Minister mentioned “we are all aware of the Constitutional provisions for all those employed in the public sector”. Furthermore, he added that in the case that these public sector branches are shut down or merged with others, “it is the government's will that none of the employees will lose their job”. He proceeded to confirm a further reduction in the hiring rate in the public sector in 2011, since the government rule of “one hired for five removed” in the Public sector will also apply when it comes to transfers between branches. Mr. Papakonstantinou made it clear that transfers within the narrow confines of certain parts of the Public sector will be the exceptions in that rule.

On what concerns the private sector, he clarified that any labour agreements signed in the future will be inferior to group agreements but in no case will they be inferior to collective ones. He pointed out that as announced in the Troika report, in the companies where salaries do not walk hand in hand with a company’s productivity, they will be shut down