What we keep and what we give away…

Troika consultations are peaking today as only details remain to close the new loan agreement. The first meetings have started since 8 in the morning and they should be completed in the evening to make the necessary announcements.

The Troika representatives no longer insist on elimination or cuts in the 13th or 14th salaries. But everything could fall apart if there is no solution to the issue of continuance of contracts.

Government members taking part in the meetings told reporters that the 13th and 14th salaries are saved but the minimum wage will be decreased by 20% on weighted average, or even by 25% in certain cases.

"Neither today nor in the last two days has there been an issue about the 13th or 14th salaries" they claim. But the Troika is pressing about the continuance of contracts which, although not completely eliminated, will only be for the basic wage and basic benefits (family, 3-year benefits, etc.). The extent of reduction remains open, and in some sectoral agreements it could be as high as 40%. The Troika is threatening that if there is no agreement, all wages will be calculated under the National Collective Labour Agreement and will be differentiated only by individual contracts.

However, already partisan staffs disagree on who saved what. Pointing to the president of ND, a senior government official has criticized those who now say they "carried out tough negotiations. With whom? With the prime minister that they themselves support? The negotiation involves the AAA countries, Germany and France," he said meaningfully.

In the fiscal field, the equivalent result is pursued by cutting costs in Health and Defense, eliminating bodies and layoffs in bodies that are closing down. According to the latest information, it seems that the increase in objective values is prevented, but 2015 will see 150,000 layoffs in the public sector, which will not include army personnel and teachers.

Government sources say that the ECB will join the haircut and the recapitalization of banks will be 70% through common shares with voting, 10% throughpreferred shares, 10% through non-voting common shares and 10% through bond shares. The administrations of private banks will not be elected by the state, but will be controled by it.

But the issue of supplementary pensions is still pending as Theroika requests a weighted average reduction of 20% (15% to 25%), while the Greek government answers back with 14% within two years, possibly 8% this year and 6% in 2013. There is an attempt to not cut very low pensions of 300 euros or less, but this cap may actually become quite low and not exceed 200 euros.