News. Greece on Tuesday cut salaries of chief executives at state-controlled corporations as part of new tax and income measures aimed at reducing the budget deficit and averting an international bail-out.
There will also be a pay freeze and a 10 per cut in allowances that together amount to a 4 per cent pay cut for more than 500,000 public sector workers.
Legislation to increase the excise tax on petrol – a measure demanded by the Commission – was rushed into parliament on Tuesday night.
Greek Prime Minister George Papandreou held government talks Tuesday on accelerating those cuts with reforms to pensions and wages.
EU governments do not want to let Greece off the hook — and that any option would force Greece to make long-delayed reforms to rife tax evasion, rigid labor market rules and an inefficient and high-spending pension and health care system.
My Point.People ask. Politicians give. People ask again. Politicians give again. People want more. Politician give more. Until the system cracks.
Who gains? The politicians, of course. They gain power and wealth as the size of the government increases its reach. This is the ultimate objective of the game.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
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