Cuts in wages, allowances, benefits and pensions will be finalized today

The latest requirements of our lenders' representatives, which appear as prerequisites to continue the financial support and were put on the table under the threat of the Troika report that will theoretically determine the disbursement of nearly 32 billion euros and possibly the extension of the program, essentially abolish rights won over many decades.

The Troika demands cutting allowances in half, the reduction of layoff warning time to three months, the actual elimination of the three-year period, and a new mechanism for the formation of minimum wage starting from next April. It also raises the issue of a six-day working week, saying "there is need for greater flexibility in the working hours and an increase of the working days."

Faced with these requirements, government officials argue that it is not possible to accept such drastic changes. Meanwhile, a general optimism is expressed that a final agreement on labour issues will occur today.

Speaking on Skai television, Labour Minister Yannis Vroutsis said that finally the 13th and 14th salaries in the private sector will be retained, while the minimum wage will remain at 586 euros.

Vroutsis admitted that the Troika has called for the elimination of bonuses in the public sector and that they have already fianlised scaled reductions in main and supplementary pensions of more than 1,000 euros. He stated that the 3 political leaders of the government will be notified during the discussion with the Troika today and it is up to them to decide.

The two sides closed the measures of 9.2 billion euros in 2013 during yesterday’s meeting, despite the fact that the Troika and the government have almost heralded the extension of the fiscal adjustment program and the repositioning of the target for primary surplus in the state budget for 2016 instead of 2014.

To confirm the report by Proto Thema, a Finance ministry member revealed that the government plans to implement the elimination of tax breaks for employees and pensioners, even for the incomes of 2012.

The new scenario the Troika and government seem to be heading towards forecasts a deficit of 0% for 2013, 1.5% primary surplus for 2014 (instead of 4.5% in the draft of the state budget), 3% for 2015 and 4 5% for 2016 (if they agree on the extension).

By the Summit next Thursday the only measures that will be closed are the structural ones. After that the Troika will determine the additional financing needs of the country that will have to be covered in case of an extension. "Without the extension we would have to take measures of 18 billion euros, while if we move the target of a 4.5% surplus from 2014 to 2016, the 13.5-billion-euro measures will be enough," a finance ministry source said. They also estimated that the tranche will be disbursed around November 15, and it will have to be preceded by the voting on tax measures and all the prerequisites.