Brussels, 22/09/2011 (Agence Europe) - On Thursday 22 September, the European Commission refused to comment on the latest round of austerity measures announced by Greece on Wednesday to help it meet its budget commitments for 2011 and 2012 (see EUROPE 10457). A Commission spokesperson said that the measures would be examined by Greece's international creditors, the European Commission, the European Central Bank and the International Monetary Fund, once their fact-finding mission starts work again in Athens. They expect the fact-finders to re-enter talks with the Greek government at the start of next week. That, at least, is the plan, but it remained to be seen whether it was feasible, added the spokesperson, pointing out that whether or not the fact-finders would indeed be taking up work in Athens again next week depended on key elements that still needed to be finalised. When they left Athens at the start of the month, the fact-finders were putting pressure on the Greek government to introduce new austerity measures to plug the shortfalls in its budget amounting to nearly €2 billion, and expected to be presented with an overview of the 2012 budget.
The Greek government unveiled the following measures on Wednesday: - setting the annual tax-free income level at €5,000; - cutting pensions of over €1,200 a month by 20% and cutting the pensions of under-55-year-olds by 40% after the first €1,000 of their monthly pensions; - putting 30,000 civil servants on the “reserve scheme” by 2012; - introducing an open and fair merit-based public sector pay system; and - encouraging privatisation and the opening of various professions to the market. The announcement of the new measures has sparked renewed public protest and the main public and private sector trade unions have called a general strike on Wednesday 5 and Wednesday 19 October, when the country's international creditors are expected to decide on whether to pay out the new instalment of aid (€8bn) to ensure Greece can pay its debts. (MB/transl.fl)