Trade with Greece
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cuts in the public health system, along with the
appointment of auditors in large hospitals; the
restructuring, or even shutdown, of “redundant”
Public Corporations and Organizations; and the
liberalization of the energy market.
These actions are also viewed as “challenges”
because they are expected to cause severe reac-
tions from the sectors and groups that are affect-
ed. Therefore, the government will seek the max-
imum possible consensus, calling all political par-
ties, as well as the representatives of social
groups, to consultation.
The crucial challenges for 2011
include, among others:
1. PCOs:
Full implementation of the restructuring
plan for public corporations, which will lead to the
shutdown of non-viable ones and the abolition of
all off-budget accounts whose original purpose
has ceased to exist. In other words, if a PCO is
impossible to restructure, it will close down. The
government must complete its intervention within
the first quarter. Apart from the payroll cuts that
have already been announced, the govern-
ment’s financial staff is going to reduce the
PCOs operating expenses by 15% to 25%. The
containment of expenditures, in conjunction
with an increase in urban transport fares by up
to 40%, is estimated to produce fiscal savings
of more than €800 million in 2011.
2. Markets:
The ratification of the draft law for
the opening of the so-called “closed” profes-
sions and the deregulation of services abolish-
es all geographical and licensing restrictions, as
well as the minimum administratively set fees
for lawyers, notaries public, architects, engi-
neers, pharmacists and chartered auditors,
while a series of ministerial decisions will lead
to the opening of 150 “closed” professions,
including hairdressers, bakers, beauticians etc.,
in 2011.
3. Tax Offices:
The tax reform bill provides
―among others― for the abolition or merger of
dozens of tax and customs offices, as well as
severe penalties for corrupt officers, which
include criminal proceedings against persons
accused for breach of duty. Tax evasion
becomes a continuing offence prosecuted upon
detection, and incurring penalties of up to 20
years of imprisonment for large tax evaders.
More specifically, the above provision applies to
the non-payment of verified and overdue debts
to the state for more than four months, the
omission, non-submission, or submission of
false, income tax and VAT returns. The draft law
also provides for the establishment of a finan-
cial prosecutor to combat tax evasion cases,
publication of large scale tax evaders that owe
more than €150,000 to the state for more than
one year, as well as publication of large-scale tax
evasion cases related to the non-issuance of
receipts, the issuance of forged or fictitious
invoices, as well as violations of the Code of
Books and Records. Moreover, strict “origin of
funds” requirements are established in regard to
the assessment and control of tax officers.
4. Single payroll system:
The government has
pledged to present, within the first quarter of the
year, a detailed action plan, complete with a spe-
cific schedule, regarding the finalization and
implementation of a single payroll system for the
public sector. The first stage includes the map-
ping of salaries and allowances for the entire pub-
lic sector, and will be followed by consultation on
the formation of the new payroll system, including
the abolition of certain allowances. The aim is to
moderate the large differences presently existing
in the remuneration of employees of the same
