Insurmountable pressure under threat of default

The most critical communication in one and a half years between Greece and its lenders is taking place right now, and its outcome will judge either the adoption of new, harsh and painful measures, or Greece’s bankruptcy since the sixth installment will not be released and thus, payments will halt in mid-October.

Already, after the dramatic outcome of the last Eurogroup meeting, the Troika has made it clear that it requires harsh measures in order to cover the 2-billion “black hole”.

According to reports, the final decisions for plans will be “locked in” during this meeting:

- Sweeping layoffs of at least of 50000 employees in the broader public sector, but also probably of newcomers to the narrower public sector.

- Bold cuts in pensions, which will be scaled, the greatest being for those who retired at an early age. According to information, pensions in public utilities will also be cut, with private sector pensions also affected.

- The same fate will be shared by the supplementary pensions. Cuts will take effect from November 1st.

- Reduction in tax exemptions for independent professionals, to 4000 euros instead of 8000 euros, without excluding the possibility of a complete abolition of tax exemption.

On the table are also increases in heating oil prices, while reductions on a single salary scale will apply from October 1st.

There will probably not be any detailed statements tonight, while the government will meet tomorrow at 11:30 am, chaired by the Prime Minister.