15 demands from the IMF/ECB/EU Troika which could be the Greek Default trigger

According to a letter published in a Greek newspaper VIMA, the EU and European Central bank
has demanded that Greece make 100,000 employees in state controlled companies redundant, in order to get the latest €8bn tranche of its EU/IMF loan.

On Friday European Finance ministers postponed a decision to pay Greece the next €8bn installment from the first EU/IMF bailout until such time as they had seen firm evidence that Greece was slashing its debts.

Now in an apparent email to the Greek government and published by an Athens newspaper, the Troika of EU, ECB and IMF lists 15 measures to be implemented.

They include making 100,000 civil servants redundant by 2014 and starting tomorrow. Pensions and overtime payments are also to be cut, TV stations closed, heating oil taxes raised and privatisations sped up.

The measures could divide the Greek government which is discussing the issue this weekend. Greece already has over 16% unemployment and a rapidly shrinking economy. It’s feared that the severe measures demanded by the Troika could increase the number of protesters on the streets and make default more rather than less likely.

15 Measures


Issuance of ministerial decisions to cut contracts without a fixed term and in all institutions of government (including teachers, to meet the objectives of the Medium Term Plan).


Issue presidential decree / ministerial decisions on the implementation of employment mode, extending the measure to all public bodies and immediate written notice of officials in introducing a system backup.


Issuance of ministerial decisions for equalizing the tax on heating oil and fuel.


Be regulated by the retention as a means for collecting the solidarity surcharge.


Cuts in pensions for beneficiaries of NAT and OTE.


Crop subsidies at the post office for handling the press and issue a ministerial decision to legislate directly.


New legislative framework for the pay status to the State, with cuts in allowances and overtime.


Freeze basic and supplementary pensions by 2015.


Redefinition of the arbitrary fines and immediate adoption of the new Master.


Issuance of ministerial decisions to close / merge 35 agencies described in the Term and closing an additional 30.


Issuance of ministerial decisions to close / merge: CGC, RTD, ODDY, National Youth Agency, EOMECH, IGME, OSB, DEPANOM, Themis, ERT.


Issuance of ministerial decisions on registration of immovable and movable property …. passing under the control of the state.


Issuance of ministerial decisions on a) the determination of all social benefits and health benefits, b) signing of collective agreements (16) private hospitals and health centers c) signing of contracts between hospitals of the NHS and private hospitals for the leasing of beds.


New law to reduce the pensions of OGA


Legislation to establish reductions in drug prices and signing contracts with pharmaceutical companies for immediate application / Introduce ‘insurance’ money for pharmaceutical companies.

My thoughts on this – live reaction on BBC News



About BBC Joe Lynam

BBC Business Correspondent covering banks, economy, companies, credit, management, tech, IT, government, markets etc. This is my private Blog and and such doesn't necessarily represent the views of the BBC
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4 Responses to 15 demands from the IMF/ECB/EU Troika which could be the Greek Default trigger

  1. Pingback: Links 9/20/11 « naked capitalism

  2. Pingback: Daily News Digest – Tuesday « the news links

  3. Pingback: Will Bernanke matter?

  4. david rice says:

    It’s all moons and oblongs to me anyway

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