Fifth austerity package (Greece)
Fifth austerity package - October 2011 measures | |
---|---|
Hellenic Republic | |
Pension regulations, uniform pay scale - grading system, labour reserve and other provisions for the implementation of the Medium-term Fiscal Strategy Framework 2012-15 (Law 4024/2011) | |
Territorial extent | Greece |
Enacted by | Hellenic Parliament |
Date passed | 20 October 2011 (For: 154; Against: 144) |
Introduced by | Government of Greece |
Status: In force |
The fifth austerity package is the fifth in a row of countermeasures of the Greek government to counter the Greek government-debt crisis. It was aimed to ensure the 6th bailout instalment for Greece.[1][2][3] The representatives of creditors required Greece to take new measures in order to limit the state expenditures. That was one of the conditions so that the financing of Greek economy to continue normally. The new bill (frequently is called multi-bill) hit mostly the civil servants and the retirees. It was voted by the Greek parliament on 20 October 2011 amid protests.[4][5] A man was killed during the demonstration of Syntagma Square.[6] Few days later the European countries ended up to an agreement for haircut of Greek debt.
The measures
The package includes:[7][8][9]
- A uniform pay scale will be implemented for civil servants. According to it, the wages of civil servants will be cut by 30% and there will be a cap on wages and bonuses.
- It is enacted the institution of labor reserve. The civil servants who are dismissed, they will receive 60% of pay for one year.
- The tax-free threshold for income tax will be lowered from 12,000 euros to 5000 euros, rather than plan of 8,000 euros of fourth austerity package (June 2011).
- Monthly pensions above 1,200 euros are cut by 20%. About retirees under 55 years old, the pension over 1000 euros is cut by 40%
- Lump Sum for retirees is cut by 20% to 30%
- Education spending will be cut by closing or merging schools
See also
- First austerity package (Greece)
- Second austerity package (Greece)
- Third austerity package (Greece)
- Fourth austerity package (Greece)
- Sixth austerity package (Greece)
- Seventh austerity package (Greece)
- Eighth austerity package (Greece)
- Ninth austerity package (Greece)
- Tenth austerity package (Greece)
- Eleventh austerity package (Greece)
- Greek government-debt crisis
References
- ↑ "Κομισιόν: «Η έκτη δόση εξαρτάται από την ψήφιση του πολυνομοσχεδίου»". tovima.gr. Retrieved 24 July 2015.
- ↑ "Μέτρα σοκ για την έκτη δόση". news247.gr. Retrieved 24 July 2015.
- ↑ "EU: "Give Greece the sixth tranche"". protothema.gr. Retrieved 24 July 2015.
- ↑ "Greece adopts austerity bill amid protests". reuters.com. Retrieved 24 July 2015.
- ↑ "Protesters and police clash amid largest Greek strike". rt.com. Retrieved 24 July 2015.
- ↑ "Man killed in Greek austerity protests - 20 October 2011". theguardian.com. Retrieved 24 July 2015.
- ↑ "Greek government austerity measures". bbc.com. Retrieved 24 July 2015.
- ↑ "Πολυνομοσχέδιο: ο λογαριασμός στους Ελληνες". tovima.gr. Retrieved 24 July 2015.
- ↑ "Μισθοί, συντάξεις και φόροι μετά το πολυνομοσχέδιο". ethnos.gr. Retrieved 24 July 2015.