Troika’s third bailout planted with explosive tax and labor mines

An amputation of Greek labor rights with no time given to react as painful measures are rushed through Parliament

Huge changes to taxation and labor issues are on the “menu” in talks between Greek officials and representatives of Greece’s creditors from the European Commission (EC), European Central Bank (ECB) and the International Monetary Fund (IMF) joined by the European Stability Mechanism (ESM).

The painful measures will be decided on and passed into Greek law this month. It is expected that the legislation will be rushed through so as to reach a deal with Greece’s creditors as quickly as possible in order to come up with the funds needed from Greece’s third bailout so to resuscitate the “wounded” Athens Stock Exchange and pay back money owed to the ECB on August 20.

Creditors are pushing for the emergency contribution Greeks were forced to pay to be made a permanent fixture in their salaries. This means that those who earn over 12,000 euros per annum will be made to pay additional salary taxes worth 0.7%-6%.

The self-employed and small and medium-sized businesses are also being targeted as they will be forced to increase their tax downpayments from 55% to 75% in 2016 and 100% in 2017. Any remaining tax exemptions will be abolished.

The lower fuel consumption prices for farmers will also be abolished in a move that is bound to cause friction.

The joint property tax (ENFIA) that the Radical Left Coalition (SYRIZA) government had condemned and vowed to abolish will continue to apply. Taxpayers are being called to pay it off in five installments until December or six-seven installments by January or February 2016.

Troika is also insisting on the abolition of a minimum wage and ending early retirement.

Tuesday’s talks will focus on privatizations with creditors calling for the application of all that SYRIZA had vowed to abolish, including the liquidation sale of ports and airports as well as the exploitation of the old airport at Hellinikon.