The new 2013-2016 Medium-Term Fiscal Strategy abolishes all extra bonuses to pensions and civil servants, introducing new pension cuts from 5 to 25 pct, while at the same time cutting special payrolls (police, the judiciary, military officers, state hospitals' medical staff, university educators, diplomats) by up to 27 pct, as well as paving the way for the redundancy of 2,000 civil servants and the abolition of state-allocated social benefits to be replaced by benefits depending on income criteria.
Specifically, the package envisages the abolition of all extra wage payments to public sector workers, introducing a 3- to 27-pct retroactive cut in special payrolls, freezing β from January 1, 2013 to the end of 2016 - payment of all target-related incentives to public sector workers; setting a 1,900-euro ceiling for wages of all employees in agencies and organisations in the general government; slashing remuneration to employees in municipal or regional authorities, as well as further cuts in wages of ministry employees.
Under the draft legislation, pensions in the private sector will be cut by up to 25 pct, in tandem with the raising of the retirement age by two years; abolition of extra pension bonuses to public sector pensioners; introduction of stricter rules for allocation of pensions to the spouses of deceased pensioners; abolition of pensions for Parliament deputies or municipal authorities elected under the new law.
The package also imposes income criteria for the allocation of family benefits.
The draft law envisions changes in previously rigid public sector labor relations, among others, allowing for public sector employees whose organisations, agencies and entities have been abolished to either be fired or transferred to other state agencies or organisations.
The government expects at least 2,000 employees to be included in such program this year as part of a commitment to reduce the public sector workforce.
The austerity package, mostly pension and wage cutbacks along with tax hikes, also foresees measures to fully liberalise certain professions and service markets, such as auditors, mini-van tourist services by hotels, tobacco product vendors, baby milk sales, accountants, private education, dental technicians, newspaper/magazine vendors, truck leasing services etc. (AMNA)
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