Wednesday, 21 March 2012

Greek Salaries to Reach Levels of 2001 in …2013!

Greek Salaries to Reach Levels of 2001 in …2013!
Posted by keeptalkinggreece
While the whole world is going forwards, Greece is going backwards. In the year 2013, Greek workers will experience a miracle. Their salaries, sharply cut in the era of loan agreements, will reach – or better say: return – to the levels of 2001! This has been predicted in the monetary report of the Bank of Greece.
“With regard to 2013, during which many collective agreements will end (and they will probably adjusted downwards in the earnings) it is possible that the average nominal wages will  fall by 7% in the total economy (about 3% in the public sector  and almost 9% in the business sector). The result will be that the labor cost per unit will be further reduced by 6% -6.5% in the total economy and about 8% in the business sector.”
What does this practically mean? It means, that the reduction in labor costs  per produced unit will reach 11.8% -12.6% in the total economy and 15.2% -16.3% in the business sector for the years 2012-2013.
The Memorandum of Understanding, the loan agreement between Greece and its lenders for the second bailout, had predicted a decline of 15% for the years 2012-2014!
Result: In 2013 Greeks will earn so much as in 2001 – And in 2014, so much as in 1997?
PS All I can say is : Fasten your seat belts and do not smoke! It’s expensive and you need to save money for the hard times to come.

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