The Greek government is reaping the seeds of the 17-hour negotiation between the Radical Left Coalition (SYRIZA) government and the Troika of Greek creditors from the EC, ECB and IMF, the July referendum, capital controls, new taxes and slaughtering of low-age pensions. The new bill submitted by Finance Minister Euclid Tsakalotos essentially gives an increase of 150 mln euros (300 mln euros by 2018) to state employees. Tsakalotos, following his meeting with the institutions on Saturday, said that the agreement reached by the government in August is much better than the plan submitted by European Commissioner Jean-Claude Juncker that people rejected in a referendum in July.

Apart from the institutionalization of Greece and the sale of mortgage and business loans to foreign funds, the law that the government has submitted to be voted on during Tuesday’s plenary includes a new salary index, customs fines for wine producers, restriction to medical expenditure and agreements for the speeding up of roadworks.

The new omnibus bill does not include tax measures (possibly so that it could pass through Greek Parliament without a hitch or perhaps another bill will be submitted separately by Wednesday) such as payment of funds using credit cards, taxation of deposits that have not been declared, etc.

Wage increases

In the public sector there have been no wage reductions. For instance, the basic wage of an employee entering the public sector continues to be set at  780 euros, and not 680 euros as is the case in the private sector (576 euros x 14, instead of 12-month payments in the state sector).

– The gap between the privileged and others has widened in favor of the privileged.

– Despite the obligatory secondary education that are necessary for employees in the public sector, each promotion for a high school graduate is worth 20% more than the rest (0.7 contribution instead of 0.55).

The government accounting report includes:

– 107 mln euros for wages based on the new salary index.

– 143 mln euros (from 2018 onwards) from salary maturation.

– 25 mln euros from an increase in subsidy funds for supervisors.

– 15 to 46 mln euros for a “production premium” following the evaluation of staff.

– Unknown funds from the connection of fees to certain duties.

Reductions

– A restriction to areas where employees receive a special subsidy for being in border regions.

– 4.5 mln euros for the abolition of compensation to group bodies.