Afternoon work for public servants too…

The economy team will exit the Troika negotiations for the 4th installment with a big pack of measures. Meanwhile, anxiety is heightened as to whether the extension will be for the entire 110bil euros or just the remaining installments.

Brussels will make the crucial decisions on Monday, when a special team will convene, although everything will be settled at the Eurogroup meeting on January 17.  

The economy team is worried that as long as the extension is not coinciding with the ability to secure low rate loans directly from the Central European Bank, the issuing of Eurobonds or the total renegotiation of the debt, the problem will only be postponed for the foreseeable future.

But speculation in the government is intense due to the strong turbulence in the international markets that is pulling down the Greek bonds before the new issuing of exchange bills on Tuesday, for which the main aim is not to exceed the 5% barrier.

However, the 4th installment of the 15bil euros comes with more painful measures. March negotiations with the Troika will see some rough proposals: besides the strict abiding with the rule of one hiring for five lay-offs in the public sector, the ratification of the increase of working hours and the extension of afternoon hours are also expected, as is the case in the private sector. Also, there will be a decrease of benefits as a fixed percentage on basic salary and a linking of wages with the work performed.

At the expenditure front, it is expected that the freezing of hiring in the public sector will continue for two years, while benefit cuts are expected with the new salary scale for public servants.

The program of public investments gets “trimmed” further, while the Troika will press for the merger or deletion of legal persons, organizations and public corporations, but also for new cuts in hospitals and insurance funds.

They will also exert strong pressure in relatio to the implementation of the measures provided for in the 2011 budget, such as the introduction of green tax on polluting enterprises, the increase in objective values, the integration of areas in urban planning and the taxation of unauthorised buildings.