Fourth austerity package (Greece)

Fourth austerity package - 'The Medium-term Programme'
Coat of arms of Greece
Hellenic Republic
Medium-term fiscal strategy 2012-15
(Law 3895/2011)
Territorial extent Greece
Enacted by Hellenic Parliament
Date passed 29 June 2011 (For: 155; Against: 138; 5 Abstentions)
Introduced by Government of Greece
Status: In force

The Fourth austerity package, commonly called 'The Medium-term Programme' or 'The June 2011 measures', is part of the countermeasures of the Greek government to counter the Greek government-debt crisis. It was approved by the Hellenic Parliament in June 2011.

Further austerity was introduced in 2011. In the midst of public discontent, massive protests and a 24-hour-strike throughout Greece,[1][2] the parliament debated on whether or not to pass a new austerity bill, known in Greece as the "mesoprothesmo" (the mid-term [plan]).[3][4] The government's intent to pass further austerity measures was met with discontent from within the government and parliament as well,[4] but was eventually passed with 155 votes in favour[3][4] (a marginal 5-seat majority). Horst Reichenbach headed up the task force overseeing Greek implementation of austerity and structural adjustment.[5]

Specific measures

The new measures included:[6][7]

On 11 August 2011 the government introduced more taxes, this time targeted at people owning immovable property.[8] The new tax, which was paid through the owner's electricity bill,[8] affected 7.5 million Public Power Corporation accounts[8] and ranged from 3 to 20 euro per square meter.[9] The tax applied for 2011–2012 and was expected to raise €4 billion in revenue.[8]

On 19 August 2011 the Greek Minister of Finance, Evangelos Venizelos, said that new austerity measures "should not be necessary".[10] On 20 August 2011 it was revealed that the government's economic measures were still out of track;[11] government revenue went down by €1.9 billion while spending went up by €2.7 billion.[11]

On a meeting with representatives of the country's economic sectors on 30 August 2011, the Prime Minister and the Minister of Finance acknowledged that some of the austerity measures were irrational,[12] such as the high VAT, and that they were forced to take them with a gun to the head.[12]

See also

References

  1. ↑ "Βροντερό όχι στο Μεσοπρόθεσμο από τους διαδηλωτές" [A loud "no" by the protesters for the mid-term (plan)]. ethnos.gr. 29 June 2011. Retrieved 22 August 2011.
  2. ↑ "Διαδηλώσεις για το Μεσοπρόθεσμο σε όλη την Ελλάδα" [Protests against the mid-term (plan) throughout Greece]. skai.gr. 29 June 2011. Retrieved 22 August 2011.
  3. 1 2 "Ψηφίστηκε το Μεσοπρόθεσμο πρόγραμμα στη Βουλή" [The mid-term plan was passed in the parliament]. portal.kathimerini.gr. 29 June 2011. Retrieved 22 August 2011.
  4. 1 2 3 "Βουλή: 155 "Ναι" στο Μεσοπρόθεσμο" [Parliament: 155 "ayes" for the mid-term (plan)]. tovima.gr. 29 June 2011. Retrieved 22 August 2011.
  5. ↑ Anthony Williams (20 July 2011). "Horst Reichenbach named head of European Commission task force for Greece". EBRD. Retrieved 29 December 2011.
  6. ↑ "Τι προβλέπει το Μεσοπρόθεσμο – Διαβάστε όλα τα μέτρα" [What's included in the mid-term plan – Read all the measures]. real.gr. 24 June 2011. Retrieved 22 August 2011.
  7. ↑ "30 ερωτήσεις και απαντήσεις για μισθούς και συντάξεις" [30 questions and answers for salaries and pensions]. tovima.gr. 4 July 2011. Retrieved 22 August 2011.
  8. 1 2 3 4 "Φοροκεραμίδα 4 δισ. ευρώ στα ακίνητα με την επιβολή του νέου ειδικού τέλους" [4 billion Euro to be raised with the imposition of the new excise tax]. enet.gr. 12 September 2011. Retrieved 14 September 2011.
  9. ↑ "Μέσα σε 3 μέρες διπλασίασαν το χαράτσι!" [In just 3 days they doubled the tax!]. enet.gr. 14 September 2011. Retrieved 14 September 2011.
  10. ↑ "Ευ. Βενιζέλος στο ΣΚΑΪ: Δεν πρέπει να χρειαστούν νέα μέτρα" [Ev. Venizelos at SKAI: New measures should not be necessary]. skai.gr. 19 August 2011. Retrieved 22 August 2011.
  11. 1 2 "Εκτός στόχου προϋπολογισμός, έσοδα, δαπάνες – Αναλυτικοί πίνακες" [Budget, revenue and spending out of track – analytical tables]. skai.gr. 20 August 2011. Retrieved 22 August 2011.
  12. 1 2 ""Πυρ ομαδόν" από κοινωνικούς εταίρους κατά κυβερνητικής πολιτικής". skai.gr. 30 August 2011. Retrieved 30 August 2011.


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