Of the €10.5bn in spending cuts, €6.5bn is coming from cuts to wages, pensions and benefits. The rest is due from savings produced by structural reforms. Up to €8bn of measures are due to be implemented next year.
· Retirees will lose roughly a month’s worth of payments. Any pensions between €1000 and €1500 will be cut by 2%. Those between €1500 and €2000 will be reduced by 5% and any above €2000 reduced by 10%.
· Extra holiday payments for pensioners and for civil servants will be abolished.
· The increase in the retirement age from 65 to 67 is due to be implemented from next year.
· Civil servants salaries will be cut by up to 10%, those working at public enterprises will see reductions of between 20% and 30%.
· Self-employed will lose their tax-free threshold of €5000 (although it will remain in place for salaried) and be taxed on the whole of their income at a rate of 30% or 35%.
· Some 300,000 farmers who are currently not obliged to keep records of what they sell will have to do so and will be taxed at a similar rate to other self-employed Greeks.
Como dizem em espanhol: "Cuando veas las barbas de tu vecino quemar, por las tuyas a remojar".