Factbox: Greek austerity and reform measures

Fri Feb 10, 2012 8:57pm EST
 
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By Harry Papachristou

ATHENS (Reuters) - The Greek cabinet approved late on Friday a draft law setting out the tough reform and austerity program it needs to take as the price of a new EU/IMF bailout.

Deputies will vote on the plan late on Sunday. Some measures will require follow-up legislation to be implemented.

Below are the main measures. All the information has come from a speech by Prime Minister Lucas Papademos and from the text of the draft law as included in hundreds of pages of legislation posted in Greek and English on the parliament's website.

FISCAL ADJUSTMENT

- Before any funds are disbursed under the bailout in March, the government must pass a supplementary budget including spending cuts worth 1.5 percent of gross domestic product this year, or 3.3 billion euros ($4.37 billion).

- The cuts include about 1.1 billion euros in health spending, mainly by lowering pharmaceuticals prices, 400 million euros from public investment, 300 million euros from the defense budget, 300 million from pension cuts and 300 million from the central government.

- Measures equivalent to 325 million euros still need to be specified.

- In June, the government then in charge following possible elections penciled for April will have to specify additional austerity measures worth 10 billion euros for 2013-2015.   Continued...