Measures for 1.5 billion euros from the 4.5 required by troika

The bargain for wages in the public and private sector continues today, with the threat of default if the country does not receive the new loan looming over the talks with the Troika. After a four-hour meeting with the minister of Finance until midnight yesterday, it appeared that the Troika is putting all pressing issues on the table: the rough twists in employment and salary reductions, the extra taxes to cover the new deficits of 2011, the fate of Greek banks etc.

But all this only pave the way for the critical meeting of political leaders, which will determine a lot. "The toughest hour since the memorandum may be today," a relevant official from the ministry of Finance commented speaking to  protothema.gr.

The bargaining on the measures is meaningful for the Troika only if parties commit to supporting and implementing them. Although many even within the government "bet" that troika will not "pull the plug" that connects the Greek economy with its life support, its official interlocutors do not consider this demanding trading line to be simply a "bluff."

Until yesterday evening, however, there was agreement only on the "easy" measures totaling 1.5 billion to correct the failures in the 2011 budget.

The weight of the cuts will not only fall to the reduction in government spending, namely on health expenditure (medical expenses and hospital care) and armament programs.

The minimum wage, the 13th and 14th salaries, the reductions in supplementary pensions and the removal of tenure in public utilities were the issues discussed in the meeting with the lenders. New meetings are scheduled for today while the critical meeting between the leaders and the PM for the new measures is expected today or tomorrow.

However, our politicians have the unanimous position of GSEE and employers as a "weapon" against the cuts in the minimum wage and the 13th and 14th salaries.

If there is a conclusion, the new measures will be presented in the Eurogroup next Monday, February 6, and are prerequisites for the activation of the PSI and the payment of 30 billion euros from the EU to our country.

If they get ratified by the Eurogroup, they will be included in the "short" memorandum that contains Greece’s conditions to be fulfilled for the PSI. This will be followed by negotiations on the new memorandum until June, which will include policies and measures, including 2014, that will have to be voted on in parliament.