Greek Austerity Measures

[30ashopper]

When you borrow and spend your way into a major debt hole and have to go looking for help, you tend to lose your sovereignty. Here is a list of all the measures the EU countries are heaping on Greece in return for billions in loans and debt forgiveness.

TAXATION

• Taxes will increase by 2.32bn euros this year, with additional taxes of 3.38bn euros in 2012, 152m euros in 2013 and 699m euros in 2014.
• A solidarity levy of between 1% and 5% of income will be levied on households to raise 1.38bn euros.
• The tax-free threshold for income tax will be lowered from 12,000 to 8,000 euros.
• There will be higher property taxes
• VAT rates are to rise: the 19% rate will increase to 23%, 11% becomes 13%, and 5.5% will increase to 6.5%.
• The VAT rate for restaurants and bars will rise to 23% from 13%.
• Luxury levies will be introduced on yachts, pools and cars.
• Some tax exemptions will be scrapped
• Excise taxes on fuel, cigarettes and alcohol will rise by one third.
• Special levies on profitable firms, high-value properties and people with high incomes will be introduced.

PUBLIC SECTOR CUTS

• The public sector wage bill will be cut by 770m euros in 2011, 600m euros in 2012, 448m euros in 2013, 300m euros in 2014 and 71m euros in 2015.
• Nominal public sector wages will be cut by 15%.
• Wages of employees of state-owned enterprises will be cut by 30% and there will be a cap on wages and bonuses.
• All temporary contracts for public sector workers will be terminated.
• Only one in 10 civil servants retiring this year will be replaced and only one in 5 in coming years.

SPENDING CUTS

• Defence spending will be cut by 200m euros in 2012, and by 333m euros each year from 2013 to 2015.
• Health spending will be cut by 310m euros this year and a further 1.81bn euros in 2012-2015, mainly by lowering regulated prices for drugs.
• Public investment will be cut by 850m euros this year.
• Subsidies for local government will be reduced.
• Education spending will be cut by closing or merging 1,976 schools.

CUTTING BENEFITS

• Social security will be cut by 1.09bn euros this year, 1.28bn euros in 2012, 1.03bn euros in 2013, 1.01bn euros in 2014 and 700m euros in 2015.
• There will be more means-testing and some benefits will be cut.
• The government hopes to collect more social security contributions by cracking down on evasion and undeclared work.
• The statutory retirement age will be raised to 65, 40 years of work will be needed for a full pension and benefits will be linked more closely to lifetime contributions.

PRIVATISATION

• The government aims to raise 50bn euros from privatisations by 2015, including:
• Selling stakes this year in the betting monopoly OPAP, the lender Hellenic Postbank, port operators Piraeus Port and Thessaloniki Port as well as Thessaloniki Water.
• It has agreed to sell 10% of Hellenic Telecom to Deutsche Telekom for about 400m euros.
• Next year, the government plans to sell stakes in Athens Water, refiner Hellenic Petroleum, electricity utility PPC, lender ATEbank as well as ports, airports, motorway concessions, state land and mining rights.
• It plans further sales to raise 7bn euros in 2013, 13bn euros in 2014 and 15bn euros in 2015.

I was reading a bit about Greece today - they basically nationalize everything and most of their national industries lose money hand over fist. Which I think serves as a lesson for anyone thinking nationalization generally is a good idea.

I'd also suggest everyone consider what type of austerity measures China might impose on us if we were to reach a point like this. This isn't a likely scenario but you never know.

 

[BeachSiO2]

I'd also suggest everyone consider what type of austerity measures China might impose on us if we were to reach a point like this. This isn't a likely scenario but you never know.

I think this is one time the Mil-Con Complex might come in handy as a deterrent. They have more people but we have bigger bombs. I feel like running for the GOP nomination after typing that, but I can't make it to the hometown of John Wayne Gacy to make my announcement.

 

[30A Skunkape]

When you borrow and spend your way into a major debt hole and have to go looking for help, you tend to lose your sovereignty. Here is a list of all the measures the EU countries are heaping on Greece in return for billions in loans and debt forgiveness.

TAXATION

• Taxes will increase by 2.32bn euros this year, with additional taxes of 3.38bn euros in 2012, 152m euros in 2013 and 699m euros in 2014.
• A solidarity levy of between 1% and 5% of income will be levied on households to raise 1.38bn euros.
• The tax-free threshold for income tax will be lowered from 12,000 to 8,000 euros.
• There will be higher property taxes
• VAT rates are to rise: the 19% rate will increase to 23%, 11% becomes 13%, and 5.5% will increase to 6.5%.
• The VAT rate for restaurants and bars will rise to 23% from 13%.
• Luxury levies will be introduced on yachts, pools and cars.
• Some tax exemptions will be scrapped
• Excise taxes on fuel, cigarettes and alcohol will rise by one third.
• Special levies on profitable firms, high-value properties and people with high incomes will be introduced.

PUBLIC SECTOR CUTS

• The public sector wage bill will be cut by 770m euros in 2011, 600m euros in 2012, 448m euros in 2013, 300m euros in 2014 and 71m euros in 2015.
• Nominal public sector wages will be cut by 15%.
• Wages of employees of state-owned enterprises will be cut by 30% and there will be a cap on wages and bonuses.
• All temporary contracts for public sector workers will be terminated.
• Only one in 10 civil servants retiring this year will be replaced and only one in 5 in coming years.

SPENDING CUTS

• Defence spending will be cut by 200m euros in 2012, and by 333m euros each year from 2013 to 2015.
• Health spending will be cut by 310m euros this year and a further 1.81bn euros in 2012-2015, mainly by lowering regulated prices for drugs.
• Public investment will be cut by 850m euros this year.
• Subsidies for local government will be reduced.
• Education spending will be cut by closing or merging 1,976 schools.

CUTTING BENEFITS

• Social security will be cut by 1.09bn euros this year, 1.28bn euros in 2012, 1.03bn euros in 2013, 1.01bn euros in 2014 and 700m euros in 2015.
• There will be more means-testing and some benefits will be cut.
• The government hopes to collect more social security contributions by cracking down on evasion and undeclared work.
• The statutory retirement age will be raised to 65, 40 years of work will be needed for a full pension and benefits will be linked more closely to lifetime contributions.

PRIVATISATION

• The government aims to raise 50bn euros from privatisations by 2015, including:
• Selling stakes this year in the betting monopoly OPAP, the lender Hellenic Postbank, port operators Piraeus Port and Thessaloniki Port as well as Thessaloniki Water.
• It has agreed to sell 10% of Hellenic Telecom to Deutsche Telekom for about 400m euros.
• Next year, the government plans to sell stakes in Athens Water, refiner Hellenic Petroleum, electricity utility PPC, lender ATEbank as well as ports, airports, motorway concessions, state land and mining rights.
• It plans further sales to raise 7bn euros in 2013, 13bn euros in 2014 and 15bn euros in 2015.

I was reading a bit about Greece today - they basically nationalize everything and most of their national industries lose money hand over fist. Which I think serves as a lesson for anyone thinking nationalization generally is a good idea.

I'd also suggest everyone consider what type of austerity measures China might impose on us if we were to reach a point like this. This isn't a likely scenario but you never know.

Thread hijack warning, but I heard a really interesting program on NPR last night regarding China. China has challenges, too. Specifically, how do they sustain annual 10-20% economic growth when their domestic innovation is zero. A nation that has a graft ridden government, pollutes worse than the US could ever even imagine, does not educate their kids to think and rips off overseas ingenuity is on thin ice.

 

[Zebraspots]

I think a lot of these items are a good idea for us to implement in a less severe way.

Requiring a minimum number of years to qualify for retirement is a huge one - especially if we make it apply to elected officials too.

 

[scooterbug44]

Nuking the Chinese because we owe them money is one of the dumbest ideas I've heard in a while.

Instead we should follow Greece's example:

TAXATION

• Taxes will increase on political campaign funds, cigarettes, liquor, and medical marijuana.
• End Bush tax cuts
• Inheritance tax on estates of $2 million or more
• Get rid of tax loopholes
• Get rid of subsidies to ethanol, oil, and farms over a certain size.
• Luxury levies will be introduced on yachts, cars over 100K, and diamonds.

PUBLIC SECTOR CUTS

• The public sector wage bill should be cut by 1% each year
• All public employees must contribute 5% of their salary or 50% of their annual retirement fund provided by taxpayers - whichever is less.
• Only 9 in 10 civil servants retiring will be replaced

SPENDING CUTS

• Defense spending will be cut by 1% a year
• Health spending will be cut, mainly by lowering regulated prices for drugs and cracking down on fraud.
• Government facilities must reduce their energy usage and overhead by 10% every 5 years.

CUTTING BENEFITS

• Social security to be means-tested and some benefits will be cut.
• Collect more social security contributions by cracking down on evasion and undeclared work. make employers pay for hiring illegal workers.
• Increase the retirement age by 6 months every 5 years.
• Minimum of 10 years of work will be needed for a full pension and benefits for all government employees and elected officials
• Benefits will be linked more closely to lifetime contributions.

 

[idlewind]

Nuking the Chinese because we owe them money is one of the dumbest ideas I've heard in a while.

Instead we should follow Greece's example:

TAXATION

• Taxes will increase on political campaign funds, cigarettes, liquor, and medical marijuana.
• End Bush tax cuts
• Inheritance tax on estates of $2 million or more
• Get rid of tax loopholes
• Get rid of subsidies to ethanol, oil, and farms over a certain size.
• Luxury levies will be introduced on yachts, cars over 100K, and diamonds.

PUBLIC SECTOR CUTS

• The public sector wage bill should be cut by 1% each year
• All public employees must contribute 5% of their salary or 50% of their annual retirement fund provided by taxpayers - whichever is less.
• Only 9 in 10 civil servants retiring will be replaced

SPENDING CUTS

• Defense spending will be cut by 1% a year
• Health spending will be cut, mainly by lowering regulated prices for drugs and cracking down on fraud.
• Government facilities must reduce their energy usage and overhead by 10% every 5 years.

CUTTING BENEFITS

• Social security to be means-tested and some benefits will be cut.
• Collect more social security contributions by cracking down on evasion and undeclared work. make employers pay for hiring illegal workers.
• Increase the retirement age by 6 months every 5 years.
• Minimum of 10 years of work will be needed for a full pension and benefits for all government employees and elected officials
• Benefits will be linked more closely to lifetime contributions.

I commend you for putting a plan forward. Just a couple of points:

1. What about legalizing marijuana? Then tax the sale of it like cigs and booze?
2. Instead of ending the Bush cuts how about ending all exemptions and deductions for everyone except a standard deduction equal to the poverty level per person. And raising the maximum for the FICA tax to 500,000? Then reduce the IRS by 50%
3. How about 5 million instead of 2 million on estates.
4. We have already tried luxury levies and they killed off jobs so how about killing this idea.
5. How about replace 8 of 10 retirees or those resigning.
6. Cut defense 2% a year, mandate all foreign bases closed in 10 years and end the Iraq,Afghanistan and Libya involvements.
7. Abolish the Department of Education, the Department of Health and Human Services, the EPA, the DEA and dozens of other federal agencies and turn those duties back to the states.

 

[scooterbug44]

1. Marijuana is legal in several states, so I think letting the states decide and then taxing it if they make it legal works.

2. Ending the Bush tax cuts is easy and quick and will have a major effect on our debt/budget. I would like more reform and streamlining, but that will take time, effort, and wrangling.

3. Why? Millionaires can either estate plan or their spoiled heirs can take the hit.

4. That was more for fun, but I don't think an extra 1% on a yacht will destroy the economy.

5. I think that might be too much - the government is the biggest employer in the country and unemployment is still high.

6. I don't think closing all foreign bases is reasonable, but the rest sounds good to me.

7. I think in most cases the states do not have the resources or ability to properly regulate. Also, why do we need 50 agencies instead of one - especially when most companies/drug dealers/problems are in multiple states? It is rare for an EPA issue to affect only one state.

 

[Rita]

.
If Texas is left without EPA oversight, we're doomed! Don't you know we care about oil/gas money and to he// with air or water quality?! The good ole boys here would love that!

The EPA as well as some other government agencies serve to help keep some of our idiots from bullying us more than they already do. I hope those like Bachmann who would throw the EPA out the window get to live near some industry spewing it's polluted air/water on them or gas well drilling and fracking behind her house in a state where representatives don't give a sheet (and yes I know we SUPPOSEDLY have a say in who's elected). It just came out in the latest White House Office of Management and Budget report that the EPA seems to be just about the most economically beneficial of government entities.

http://www.whitehouse.gov/sites/default/files/omb/inforeg/2011_cb/2011_cba_report.pdf
http://motherjones.com/blue-marble/...Jones+|+The+Blue+Marble)&utm_content=FaceBook

.

 

[BeachSiO2]

Nuking the Chinese because we owe them money is one of the dumbest ideas I've heard in a while.

While my comment was meant "tongue in cheek", I don't think anyone said we would bomb China. Does anyone think America would listen to China if they told us how to pay them back? I think there would be a slim chance that any outside body would have success in enforcing austerity measures on the U.S. Also IMO, we write to many checks and provide military protection to other countries for them to play hard ball.