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Papandreou serves 14 billion euros tax cocktail to Greeks

25 June 2011 / 19:06:10  GRReporter
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It should be emphasized that despite the increase in excise duty on heating oil from 21 euros per ton to 60 euros per ton, which will raise the cost for households with 5-6 cents per liter, but also the alignment of tax for companies, the plan to the ministry reports that revenues this year will be reduced by 188 million euros and 404 million euros in 2012. 

Real Estate Fund 

The executive law on medium-term fiscal plan regarding the movable and immovable property includes absolute independence for the “Fund for private ownership of land" with the possibility of legalizing illegal buildings owned by the Union of Greek Tourism (UGT), Concessions on beaches for up to 50 years and building permits issued within 60 days. 

The Executive Law of the medium-term fiscal plan, in which recorded are the general principles of operation of movable and immovable state property, specifies the main innovations of the new funds in formation and functioning, which are the following: 

* the Fund may, notwithstanding the written in Article 23a 3. 2190/1920, to use the product from issuing the bonds for the procurement of government bonds from the market. 

* it has the right for liquidation (according to the liquidation regulations of the company) of movable or immovable property. 

Operation 

However, Article 14 of the Bill provides that the operation of state property to allow direct transfer in favor of the investor to use the beaches and the right to make, use and operate the port activities, or expanding existing port facilities in the region. 

The concession is granted for a period of up to fifty (50) years. 

It also provides for the legalization of all full and partial illegal buildings owned by the GTU in order to speed up their operation. 

In order to accelerate, building permits for new legal structures will be issued within 60 days. 

Institution on the "surface"

New type of concession contracts lasting for up to 100 years creates the so called Institution on the surface, which again became topical in the Executional law of the mid-term fiscal plan. 

For "surface" is defined the property right, which provides separate comprehensive property (only with a time limit by the law) on property located on the ground, resulting in the transferor remains the owner of the land and the "surface owner" is the owner of structure built on it (existing or future). 

In the public sector 

As emergency measures of the medium-term program the bill introduces the term "labor reserves" in the public sector gives a “door” for cuts in redundant staff in public authorities and contraction of appointments.

In particular, the excess staff of entities is included in ranking lists, which are prepared separately for every legal entity from the Agency for Recruitment (ASEP), based on objective criteria. 

For 12 months after their designation as "surplus" staff, the employees included in this list will continue to receive salaries equal to 60% of their basic salary. 

Also, the staff in the public sector, legal persons or organizations of local government may request a reduction of working time to 50% with a corresponding reduction of their wages of up to five (5) years. 

Regarding the appointments in the public sector, successful ASEP candidates after January 1, 2009 will be appointed gradually according to their success rate until December 31, 2015! For 2011, the proportion of appointments is determined to 1 in every 10 who have left and appointments will be made from 2012 onwards in ratio 1/5. 

Flexibility in the workplace 

Provided in the Executive Law for the implementation of the medium-term program is the enhancement of flexibility in arranging working time, fixed-term contracts and the possibility of signing contracts for young people aged 18 to 25 years with low pay. 

How much pension will be reduced 

Provided in the Executive Law of the medium-term program on social security are the reduction of pensions from the pension fund of seamen (NAT) retrospectively from the beginning of 2011 by 6% and creating an unemployment account in the Employment Agency (OAED) and for the self-insured, with a monthly payment from August 1, 2011 amounted to 10 euros providers in Insurance Institute of freelancers (OAEE).

Meanwhile the Insurance Institute for freelancers introduces an annual revenue payment for companies according to their sectors, after a research, which will determine the percentage of the payment. 

The first 5 insurance categories in the Farmers Insurance Institute (OGA) are required and the transfer can be done every 3 years except for the first category in which a second transfer can occur after 5 years. 

Reduced with 10 percent is the one-time sum retrospectively from January 1, 2010 with from the Fund for the Welfare of Civil Servants and with 15 percent from the sector of the National Electric Company, for those who do not have an issued decision for granting the one-time sum payment. 

In the recovery rate, 80% of the salaries of retirees with 35 years of service, included are also family allowances and introduced is a ceiling, multiplied by four times according to the monthly GDP per capita for 1991, updated by the increase of pensions in the public sector. 

Tags: Papandreou Greece crisis tax measures economy
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