The government is hoping to collect 700 million euros this year and another 2.9 billion in 2012 from the real estate hike. But with recession already reaching at 6% instead of the estimated 5,5%, the black hole is constantly growing along with the need for tax collection.
The additional measures that will cover a shortfall of around 2-3 billion will be discussed with troika, but the solutions discussed are many and unfair.
Although the finance minister excludes new recovery measures, in case of failure on the objectives of the memorandum, it is certain that the government will once again be led to:
- the imposition of a new extra fee on almost everybody
- the increase of taxes in cigarettes and alcohol
- increases of bills of the SoCs
But to cover revenue shortfalls in the short -term an even greater and more drastic cut in government spending is expected. This means:
- cutting of funding and more "locks" on public bodies sponsored by the budget
- widening of redundancy
- staff layoffs
- horizontal wage cuts apart from what is provided in the single payroll
- bigger cuts in pensions.