The 10 Toughest Greek Austerity Measures

The 10 Toughest Austerity Measures

If you think you’ve got it tough living in America, just be glad you’re not going to be in Greece as that nation begins to confront the true reality of austerity.From a 15 percent cut in public wages to cigarette and alcohol taxes to Social Security reductions and means testing, the Greek measures will instill pain, necessary though it may be, for years to come.

If you think you’ve got it tough living in America, just be glad you’re not going to be in Greece as that nation begins to confront the true reality of austerity.

From a 15 percent cut in public wages to cigarette and alcohol taxes to Social Security reductions and means testing, the Greek measures will instill pain, necessary though it may be, for years to come.

Posted 29 June 2011
By Jeff Cox

Taxes Will Increase

Taxes will increase by 2.32 billion euros this year and 3.38 billion, 152 million and 699 million in the three subsequent years. There will be higher property taxes and an increase in the value-added tax (VAT) from 19 percent to 23 percent.
Photo: Getty Images

Taxes will increase by 2.32 billion euros this year and 3.38 billion, 152 million and 699 million in the three subsequent years. There will be higher property taxes and an increase in the value-added tax (VAT) from 19 percent to 23 percent.

Luxury Levies

Luxury levies will be introduced on yachts, pools and cars and there will be special levies on profitable firms, high-value properties and people with high incomes.
Photo: Getty Images

Luxury levies will be introduced on yachts, pools and cars and there will be special levies on profitable firms, high-value properties and people with high incomes.

Tax Increases

Excise taxes on fuel, cigarettes and alcohol will rise by one-third.
Photo: Izabela Habur | Getty Images

Excise taxes on fuel, cigarettes and alcohol will rise by one-third.

Public Sector Wages

Public sector wages will be cut by 15 percent.
Photo: Aris Messinis | AFP | Getty Images

Public sector wages will be cut by 15 percent.

Defense Spending

Defense spending will be cut by 200 million euros in 2012 and 333 million each year from 2013 to 2015.
Photo: Louisa Gouliamaki | AFP | Getty Images

Defense spending will be cut by 200 million euros in 2012 and 333 million each year from 2013 to 2015.

Education Spending

Education spending will be cut by closing or merging 1,976 schools.
Photo: Izabela Habur | Getty Images

Education spending will be cut by closing or merging 1,976 schools.

Social Security

Social Security will be cut by 1.09 billion euros this year, 1.28 billion in 2012, 1.03 billion in 2013, 1.01 billion in 2014 and 700 million in 2015. There also will be means testing, and the statutory retirement age will be raised to 65 from 61.
Photo: Louisa Gouliamaki | AFP | Getty Images

Social Security will be cut by 1.09 billion euros this year, 1.28 billion in 2012, 1.03 billion in 2013, 1.01 billion in 2014 and 700 million in 2015. There also will be means testing, and the statutory retirement age will be raised to 65 from 61.

Government Privatization

The government will privatize a number of its enterprises, including the OPAP gambling monopoly, the Hellenic Postbank, several port operations, Hellenic Telecom and will sell its stake in Athens Water, Hellenic Petroleum, PPC electric utility and lender ATEbank, as well as ports, airports, motorway concessions, state land and mining rights.
Photo: Aris Messinis | AFP | Getty Images

The government will privatize a number of its enterprises, including the OPAP gambling monopoly, the Hellenic Postbank, several port operations, Hellenic Telecom and will sell its stake in Athens Water, Hellenic Petroleum, PPC electric utility and lender ATEbank, as well as ports, airports, motorway concessions, state land and mining rights.

Retiring Civil Servants

Only one in 10 civil servants retiring this year will be replaced and one in five in coming years.
Photo: Louisa Gouliamaki | AFP | Getty Images

Only one in 10 civil servants retiring this year will be replaced and one in five in coming years.

Health Spending Cuts

Health spending will be cut by 310 million euros this year and 1.81 billion euros from 2012 to 2015.
Photo: Getty Images

Health spending will be cut by 310 million euros this year and 1.81 billion euros from 2012 to 2015.