Stricter austerity measures by IMF/EU shock Greeks!

Stricter austerity measures imposed by EU/IMF “troika” shock Greeks!

In a clear message PM G. Papandreou informed representatives from trade unions and businessmen associations about the conditions imposed by EU and IMF in order to activate the ‘rescue package’ of 120 billion Euros, the largest economic package ever given to bailout a country.

According to Greek media and websites the measures will be:

–        Repeal the 13th and 14th salary in the public sector

–        Abolition of the 13th and 14th pension in the public & private sector

–        Replacement of the 13th and 14th salary as ‘bonus’ given on a voluntary basis in the private sector.

  ****    13^th & 14^th salary refer to Christmas-, Eastern- and Holiday-Bonuses

–        Increase in VAT rates to 23%

–        Increase of Taxes in alcoholic beverages & tobacco products

–        Raising the dismissal quotas (currently 2%) in the private sector

******   VAT was raised by 2 units from 19% to 21% last month.

 The new measures have shocked the Greeks, who already suffer through the recent raises in the VAT and the dried out of the market.

 The measures are expected to be officially announced probably on Sunday, one day after the 1^st of May, apparently out of government fear of public outcry.

The 1st of May is traditionally  celebrated in Greece as Labor Day/Strike Day with trade unions , demonstrating in major Greek cities.

Tags: 1st of May, austerity measures, bailout, Economy, EU, EU/IMF, George Papandreou, Greece, Greeks, IMF, new measures, Papandreou, private sector, public sector, stricter measures, VAT