We are getting poorer to avoid bankruptcy

Parliament to vote on ministerial council act

 

 

The prerequisite measures for financial aid to our country that bring cuts or loss of wages or pensions for hundreds of thousands of Greeks are entering the final stretch today and tomorrow.

The parliament must vote on the bills of the Health and Labour ministries and bills for the supplementary budget, fiscal policy and legal framework for PSI, so that tomorrow, Wednesday, PM Lucas Papademos and Evangelos Venizelos will go with "full hands" in Brussels to meet with Jose Barroso and the coming eurogroup respectively.

While the exchange of bonds is up and running and foreign parliaments vote for the financial aid to our country, the cabinet will meet for the reductions in the new wages in the private sector, which will start from March 1.

With the seal of the cabinet on Tuesday, there will be reversals at labour issues for thousands of workers in the private sector. They will sign the end of the continuance of contracts and there will be a three-month extension to the sectoral contracts that have expired. This means 22% reduction in minimum wages, which will take effect from 1 March for 360,000 workers, while it will sweep those who have signed sectoral contracts that have expired, resulting in reductions that will reach 47%.

The draft law submitted by the procedure of urgency and is expected to be voted in parliament today, includes the revised budget, which confirms the drastic cut in wages, pensions, large family benefits, as well as care and insurance spending.

The main provisions provide for:

    12% reduction in major pensions over € 1,300 retrospectively from 01.01.2012, which takes effect from May 1. The reduction is also for pensioners of OTA, public entities, OSE and former funds of rail networks staff
    12% reduction in primary pensions over € 1,300 of pensioners of the Bank of Greece retrospectively from 01.01.2012
    12% reduction retrospectively from 01.01.2012 for 50% of primary and supplementary pensions of ETAT and ETEAM. The principal amount of the pension cannot be less than € 1,300 and in case of multiple beneficiaries the remaining amount is allocated
    10% reduction retrospectively from 01.01.2012 for supplementary pensions if they reach up to € 250, 15% from € 250.01 to € 300.00 and 20% for € 300.01 and upwards
    the amounts of retroactive reductions are withheld in 8 equal monthly installments from the pension of May 2012 onwards
    from 01/01/2012 the remuneration of mayors, regional heads, deputy mayors, presidents of municipal councils and vice-deputy mayors will be reduced by 10%. The number of deputy mayors that will get remuneration in municipalities of up to 200,000 residents and the number of employees in those functions will also be reduced



By the end of February there must be signatures on dozens of decrees that will change the lives of workers:

        elimination of labour permanency by law (public companies, banks and where it exists) and of collective agreements
        elimination of the Workers' Housing Organisations, large family benefits, and the food coupons for students
        increase of the participation of the insured in medical examinations and pharmaceutical care
        freezing of maturation in all private contracts and the abolition of compulsory arbitration



Circulars will also have to be issued to fully implement the deregulation of the 20 professions, including accountants, doctors, dentists, optical shops, central food markets, etc.

A ministerial decree will:

        establish fees for issuing new licenses for trucks after the full deregulation of road transport
        increase the trade fee tax for all professionals (those who issue services receipts), which is € 400 in cities with less than 200,000 people and € 500 in major urban centers



The 10% cut to special payrolls (doctors, judges, judiciaries, military, police and port staff) from June 1 is also a requirement of troika.