The EU summit has passed. More measures on the way.

New sacrifices of 16 billion euro are planned by the government within the medium-term austerity program of 2012-2015. Only for this year, the government is seeking 2 billion to cover budget failures.

That is, to put money into empty state coffers...

The Finance Ministry has launched a wild tax chase for arrears debts and those who have not performed estate closures. At the same time, placed on the table are income criteria even when it comes down to unemployment benefits in order for it to be cancelled for whomever had high incomes two years prior (60.000-70.000 per year), or if their spouse is employed, or if they possess a second house, in order for the state to save a total of 2 billion.

In addition to the above, the single payroll is being accelerated, while there are new cuts on public expenditure for utilities and insurance funds. It seems likely that the rule of 1 hiring for 5 redundancies is becoming stricter as well.

Overall this year, measures of 14.3 billion have already been planned, while a further 1.74 billion that the Troika are requesting is still to be located due to failures in the budget. Finally, in order to reduce the deficit by 5 billion this year alone (2.5% of the GDP), measures will be taken amounting to a total of 16 billion.

Tax breaks enjoyed both by individuals and businesses will be cut down. Memorandum 4 refers to a reduction of tax exemptions that cost the Treasury more than 6 billion. 980 tax exemptions are targeted, which will be granted only based on strict income criteria. Expenses such as medical fees, rent and mortgadges, insurance and tuition will only apply to those who declare very low incomes.

An increase in lower VAT rates is also planned so that most products and services are taxed at 23%.

Social welfare will be given only to those who claim they live on less than 7000 or 8000 euro a year.

Through this medium term financial strategy, the government is attempting to reduce the deficit from 17 billion to 2.6 billion by the end of 2015. An adjustment of 6.4% of the GDP or 14.5 billion will be required.

To achieve this, new interventions amounting to a total of 22 billion euro will be required. The medium-term fiscal policy framework is front-heavy; that is to say, most measures must be devised by 2012. 7 billion euro must be saved through relevant planning while in 2013 4 billion more will be sought, and 7 billion in 2014, and another 4 billion in 2015.

Although the measures of 2012-2015 are still being debated on, the basic route that the government has set is that 1/3 will come from an increase in revenue and the remaining 2/3 from spending cuts, by focusing on wages and social transfers (pensions and allowance benefits).