Factbox: Greek austerity and reform measures

09.02.2012 16:00

(Reuters) - Greek leaders failed on Thursday to sign off on a tough reform and austerity program, the price of a new EU/IMF bailout. A government source said 90 percent of measures had been settled and only one issue needed to be resolved.

Below are some details of what has been agreed by the party chiefs and officials of the European Union and International Monetary Fund. All the information has come from party and government officials.


-- Greek leaders have agreed to spending cuts worth 1.5 percent of gross domestic product this year, or 3.3 billion euros ($4.37 billion). By Thursday morning, savings had been agreed to cover all but 300 million euros of that amount.

-- The cuts include 400 million euros from public investment, 300 million euros from the defense budget and 300 million from pensions.

-- In June, whichever government is in charge following expected elections will have to specify additional austerity measures worth 10 billion euros for 2013-2015.

-- Greece will be given an extra year, until the end of 2015, to meet a primary surplus target (excluding interest payments).


-- Banks with major problems will be recapitalized with common voting shares while those with lesser problems will be recapitalized with bonds convertible into shares with restricted voting rights.


-- The minimum wage will be cut by 22 percent. However, this will not drag down the entire wage scale, applying only to new hires. New entrants into the labor market, i.e. those getting their first job, will receive a sub-minimum wage 30 percent below the current minimum wage, which now stands at about 750 euros. Those under 25 will be affected the most.

-- About 15,000 state workers will be placed in a "labor reserve," meaning they will be placed on partial pay and dismissed after a year.

-- The government aims to cut the state sector workforce by about 150,000 people by 2015.

($1 = 0.7545 euros)

(Reporting by Harry Papachristou; Compiled by Karolina Tagaris; editing by Elizabeth Piper)